Florida Senate - 2019 SENATOR AMENDMENT Bill No. CS for CS for SB 874 Ì709992TÎ709992 LEGISLATIVE ACTION Senate . House . . . Floor: 2/AD/2R . 04/26/2019 12:30 PM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Rouson moved the following: 1 Senate Substitute for Amendment (308946) (with title 2 amendment) 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. Section 516.405, Florida Statutes, is created to 7 read: 8 516.405 Access to Responsible Credit Pilot Program.— 9 (1) The Access to Responsible Credit Pilot Program is 10 created within the Office of Financial Regulation to allow more 11 Floridians to obtain responsible consumer finance loans in 12 principal amounts of at least $300 but not more than $7,500. 13 (2) The pilot program is intended to assist consumers in 14 building their credit and to provide additional consumer 15 protections for these loans that exceed current protections 16 under general law. 17 Section 2. Section 516.41, Florida Statutes, is created to 18 read: 19 516.41 Definitions.—As used in ss. 516.405-516.46, the 20 term: 21 (1) “Access partner” means an entity that, at one or more 22 physical business locations owned or rented by the entity, 23 performs one or more of the services authorized in s. 516.44(2) 24 on behalf of a program licensee. The term does not include a 25 credit service organization as defined in s. 817.7001 or a loan 26 broker as defined in s. 687.14. 27 (2) “Consumer reporting agency” has the same meaning as the 28 term “consumer reporting agency that compiles and maintains 29 files on consumers on a nationwide basis” in the Fair Credit 30 Reporting Act, 15 U.S.C. s. 1681a(p). 31 (3) “Credit score” has the same meaning as in the Fair 32 Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A). 33 (4) “Data furnisher” has the same meaning as the term 34 “furnisher” in 12 C.F.R. s. 1022.41(c). 35 (5) “Pilot program” or “program” means the Access to 36 Responsible Credit Pilot Program. 37 (6) “Pilot program license” or “program license” means a 38 license issued under ss. 516.405-516.46 authorizing a program 39 licensee to make and collect program loans. 40 (7) “Program branch office license” means a license issued 41 under the program for each location, other than a program 42 licensee’s or access partner’s principal place of business: 43 (a) The address of which appears on business cards, 44 stationery, or advertising used by the program licensee in 45 connection with business conducted under this chapter; 46 (b) At which the program licensee’s name, advertising or 47 promotional materials, or signage suggests that program loans 48 are originated, negotiated, funded, or serviced by the program 49 licensee; or 50 (c) At which program loans are originated, negotiated, 51 funded, or serviced by the program licensee. 52 (8) “Program licensee” means a person who is licensed to 53 make and collect loans under this chapter and who is approved by 54 the office to participate in the program. 55 (9) “Program loan” means a consumer finance loan with a 56 principal amount of at least $300, but not more than $7,500, 57 originated pursuant to ss. 516.405–516.46, excluding the amount 58 of the origination fee authorized under s. 516.43(3). 59 (10) “Refinance program loan” means a program loan that 60 extends additional principal to a borrower and replaces and 61 revises an existing program loan contract with the borrower. A 62 refinance program loan does not include an extension, a 63 deferral, or a rewrite of the program loan. 64 Section 3. Section 516.42, Florida Statutes, is created to 65 read: 66 516.42 Requirements for program participation; program 67 application requirements.— 68 (1) A person may not advertise, offer, or make a program 69 loan, or impose any charges or fees pursuant to s. 516.43, 70 unless the person obtains a pilot program license from the 71 office. 72 (2) In order to obtain a pilot program license, a person 73 must: 74 (a)1. Be licensed to make and collect consumer finance 75 loans under s. 516.05; or 76 2. Submit the application for the license required in s. 77 516.03 concurrently with the application for the program 78 license. The application required by s. 516.03 must be approved 79 and the license under that section must be issued in order to 80 obtain the program license. 81 (b) Be accepted as a data furnisher by a consumer reporting 82 agency. 83 (c) Demonstrate financial responsibility, experience, 84 character, or general fitness, such as to command the confidence 85 of the public and to warrant the belief that the business 86 operated at the licensed or proposed location is lawful, honest, 87 fair, efficient, and within the purposes of this chapter. 88 (d) Not be subject to the issuance of a cease and desist 89 order; the issuance of a removal order; the denial, suspension, 90 or revocation of a license; or any other action within the 91 authority of the office, any financial regulatory agency in this 92 state, or any other state or federal regulatory agency that 93 affects the ability of such person to participate in the 94 program. 95 (3)(a) A program applicant must file with the office a 96 digital application in a form and manner prescribed by 97 commission rule which contains all of the following information 98 with respect to the applicant: 99 1. The legal business name and any other name under which 100 the applicant operates. 101 2. The applicant’s main address. 102 3. The applicant’s telephone number and e-mail address. 103 4. The address of each program branch office. 104 5. The name, title, address, telephone number, and e-mail 105 address of the applicant’s contact person. 106 6. The license number, if the applicant is licensed under 107 s. 516.05. 108 7. A statement as to whether the applicant intends to use 109 the services of one or more access partners under s. 516.44. 110 8. A statement that the applicant has been accepted as a 111 data furnisher by a consumer reporting agency and will report to 112 a consumer reporting agency the payment performance of each 113 borrower on all program loans. 114 9. The signature and certification of an authorized person 115 of the applicant. 116 (b) A person who desires to participate in the program but 117 who is not licensed to make consumer finance loans pursuant to 118 s. 516.05 must concurrently submit the following digital 119 applications in a form and manner specified in this chapter to 120 the office: 121 1. An application pursuant to s. 516.03 for licensure to 122 make consumer finance loans. 123 2. An application for admission to the program in 124 accordance with paragraph (a). 125 (4) Except as otherwise provided in ss. 516.405-516.46, a 126 program licensee is subject to all the laws and rules governing 127 consumer finance loans under this chapter. A program license 128 must be renewed biennially. 129 (5) Notwithstanding s. 516.05(3), only one program license 130 is required for a person to make program loans under ss. 131 516.405-516.46, regardless of whether the program licensee 132 offers program loans to prospective borrowers at its own 133 physical business locations, through access partners, or via an 134 electronic access point through which a prospective borrower may 135 directly access the website of the program licensee. 136 (6) Each branch office of a program licensee must be 137 licensed under this section. 138 (7) The office shall issue a program branch office license 139 to a program licensee after the office determines that the 140 program licensee has submitted a completed electronic 141 application for a program branch office license in a form 142 prescribed by commission rule. The program branch office license 143 must be issued in the name of the program licensee that 144 maintains the branch office. An application is considered 145 received for purposes of s. 120.60 upon receipt of a completed 146 application form. The application for a program branch office 147 license must contain the following information: 148 (a) The legal business name and any other name under which 149 the applicant operates. 150 (b) The applicant’s main address. 151 (c) The applicant’s telephone number and e-mail address. 152 (d) The address of each program branch office. 153 (e) The name, title, address, telephone number, and e-mail 154 address of the applicant’s contact person. 155 (f) The applicant’s license number, if the applicant is 156 licensed under this chapter. 157 (g) The signature and certification of an authorized person 158 of the applicant. 159 (8) Except as provided in subsection (9), a program branch 160 office license must be renewed biennially at the time of 161 renewing the program license. 162 (9) Notwithstanding subsection (7), the office may deny an 163 initial or renewal application for a program license or program 164 branch office license if the applicant or any person with power 165 to direct the management or policies of the applicant’s 166 business: 167 (a) Fails to demonstrate financial responsibility, 168 experience, character, or general fitness, such as to command 169 the confidence of the public and to warrant the belief that the 170 business operated at the licensed or proposed location is 171 lawful, honest, fair, efficient, and within the purposes of this 172 chapter. 173 (b) Pled nolo contendere to, or was convicted or found 174 guilty of, a crime involving fraud, dishonest dealing, or any 175 act of moral turpitude, regardless of whether adjudication was 176 withheld. 177 (c) Is subject to the issuance of a cease and desist order; 178 the issuance of a removal order; the denial, suspension, or 179 revocation of a license; or any other action within the 180 authority of the office, any financial regulatory agency in this 181 state, or any other state or federal regulatory agency that 182 affects the applicant’s ability to participate in the program. 183 (10) The commission shall adopt rules to implement this 184 section. 185 Section 4. Section 516.43, Florida Statutes, is created to 186 read: 187 516.43 Requirements for program loans.— 188 (1) REQUIREMENTS.—A program licensee shall comply with each 189 of the following requirements in making program loans: 190 (a) A program loan must be unsecured. 191 (b) A program loan must have: 192 1. A term of at least 120 days, but not more than 36 193 months, for a loan with a principal balance upon origination of 194 at least $300, but not more than $3,000. 195 2. A term of at least 12 months, but not more than 60 196 months, for a loan with a principal balance upon origination of 197 more than $3,000. 198 (c) A borrower may not receive a program loan for a 199 principal balance exceeding $5,000 unless: 200 1. The borrower has paid in full the outstanding principal, 201 interest, and fees on a previous program loan; 202 2. The borrower’s credit score increased from the time of 203 application for the borrower’s first consummated program loan; 204 and 205 3. The borrower was never delinquent for more than 7 days 206 on a previous program loan. 207 (d) A program loan may not impose a prepayment penalty. A 208 program loan must be repayable by the borrower in substantially 209 equal, periodic installments, except that the final payment may 210 be less than the amount of the prior installments. Installments 211 must be due either every 2 weeks, semimonthly, or monthly. 212 (e) A program loan must include a borrower’s right to 213 rescind the program loan by notifying the program licensee of 214 the borrower’s intent to rescind the program loan and returning 215 the principal advanced by the end of the business day after the 216 day the program loan is consummated. 217 (f) Notwithstanding s. 516.031, the maximum annual interest 218 rate charged on a program loan to the borrower, which must be 219 fixed for the duration of the program loan, is 36 percent on 220 that portion of the unpaid principal balance up to and including 221 $3,000; 30 percent on that portion of the unpaid principal 222 balance exceeding $3,000 and up to and including $4,000; and 24 223 percent on that portion of the unpaid principal balance 224 exceeding $4,000 and up to and including $7,500. The original 225 principal amount of the program loan is equal to the amount 226 financed as defined by the federal Truth in Lending Act and 227 Regulation Z of the Board of Governors of the Federal Reserve 228 System. In determining compliance with the maximum annual 229 interest rates in this paragraph, the computations used must be 230 simple interest through the application of a daily periodic rate 231 to the actual unpaid principal balance each day and may not be 232 added-on interest or any other computations. 233 (g) If two or more interest rates are applied to the 234 principal amount of a program loan, the program licensee may 235 charge, contract for, and receive interest at that single annual 236 percentage rate that, if applied according to the actuarial 237 method to each of the scheduled periodic balances of principal, 238 would produce at maturity the same total amount of interest as 239 would result from the application of the two or more rates 240 otherwise permitted, based upon the assumption that all payments 241 are made as agreed. 242 (h) The program licensee shall reduce the interest rates 243 specified in paragraph (f) on each subsequent program loan to 244 the same borrower by a minimum of 1 percent, up to a maximum of 245 6 percent, if all of the following conditions are met: 246 1. The subsequent program loan is originated within 180 247 days after the prior program loan is fully repaid. 248 2. The borrower was never more than 15 days delinquent on 249 the prior program loan. 250 3. The prior program loan was outstanding for at least one 251 half of its original term before its repayment. 252 (i) The program licensee may not induce or permit any 253 person to become obligated to the program licensee, directly or 254 contingently, or both, under more than one program loan at the 255 same time with the program licensee. 256 (j) The program licensee may not refinance a program loan 257 unless all of the following conditions are met at the time the 258 borrower submits an application to refinance: 259 1. The principal amount payable may not include more than 260 60 days’ unpaid interest accrued on the previous program loan 261 pursuant to s. 516.031(5). 262 2. For a program loan with an original term up to and 263 including 25 months, the borrower has repaid at least 60 percent 264 of the outstanding principal remaining on his or her existing 265 program loan. 266 3. For a program loan with an original term of more than 25 267 months, but not more than 60 months, the borrower has made 268 current payments for at least 9 months on his or her existing 269 program loan. 270 4. The borrower is current on payments for his or her 271 existing program loan. 272 5. The program licensee must underwrite the new program 273 loan in accordance with subsection (7). 274 (k) In lieu of the provisions of s. 687.08, the program 275 licensee or, if applicable, its approved access partner shall 276 make available to the borrower by electronic or physical means a 277 plain and complete receipt of payment at the time that a payment 278 is made by the borrower. For audit purposes, the program 279 licensee must maintain an electronic record for each receipt 280 made available to a borrower, which must include a copy of the 281 receipt and the date and time that the receipt was generated. 282 Each receipt made available to the borrower must show all of the 283 following: 284 1. The name of the borrower. 285 2. The name of the access partner, if applicable. 286 3. The total payment amount received. 287 4. The date of payment. 288 5. The program loan balance before and after application of 289 the payment. 290 6. The amount of the payment that was applied to the 291 principal, interest, and fees. 292 7. The type of payment made by the borrower. 293 8. The following statement, prominently displayed in a type 294 size equal to or larger than the type size used to display the 295 other items on the receipt: “If you have any questions about 296 your loan now or in the future, you should direct those 297 questions to ...(name of program licensee)... by ...(at least 298 two different ways in which a borrower may contact the program 299 licensee)....” 300 (2) WRITTEN DISCLOSURES AND STATEMENTS.— 301 (a) Notwithstanding s. 516.15(1), the loan contract and all 302 written disclosures and statements may be provided by a program 303 licensee to a borrower in English or in the language in which 304 the loan is negotiated. 305 (b) The program licensee shall provide to a borrower all 306 the statements required of licensees under s. 516.15. 307 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program 308 licensee may: 309 (a) Contract for and receive an origination fee from a 310 borrower on a program loan. The program licensee may either 311 deduct the origination fee from the principal amount of the loan 312 disbursed to the borrower or capitalize the origination fee into 313 the principal balance of the loan. The origination fee is fully 314 earned and nonrefundable immediately upon the making of the 315 program loan and may not exceed the lesser of 6 percent of the 316 principal amount of the program loan made to the borrower, 317 exclusive of the origination fee, or $90. 318 (b) Not charge a borrower an origination fee more than 319 twice in any 12-month period. 320 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A 321 program licensee may: 322 (a) Notwithstanding s. 516.031, require payment from a 323 borrower of no more than $20 for fees incurred by the program 324 licensee from a dishonored payment due to insufficient funds of 325 the borrower. 326 (b) Notwithstanding s. 516.031(3)(a)9., contract for and 327 receive a delinquency charge for each payment in default for at 328 least 7 days if the charge is agreed upon, in writing, between 329 the program licensee and the borrower before it is imposed. 330 Delinquency charges may be imposed as follows: 331 1. For payments due monthly, the delinquency charge for a 332 payment in default may not exceed $15. 333 2. For payments due semimonthly, the delinquency charge for 334 a payment in default may not exceed $7.50. 335 3. For payments due every 2 weeks, the delinquency charge 336 for a payment in default may not exceed $7.50 if two payments 337 are due within the same calendar month, and may not exceed $5 if 338 three payments are due within the same calendar month. 339 340 The program licensee, or any wholly owned subsidiary of the 341 program licensee, may not sell or assign an unpaid debt to an 342 independent third party for collection purposes unless the debt 343 has been delinquent for at least 30 days. 344 (5) CREDIT EDUCATION.—Before disbursement of program loan 345 proceeds to the borrower, the program licensee must: 346 (a) Direct the borrower to the consumer credit counseling 347 services offered by an independent third party; or 348 (b) Provide a credit education program or seminar to the 349 borrower. The borrower is not required to participate in such 350 education program or seminar. A credit education program or 351 seminar offered pursuant to this paragraph must be provided at 352 no cost to the borrower. 353 (6) CREDIT REPORTING.— 354 (a) The program licensee shall report each borrower’s 355 payment performance to at least one consumer reporting agency. 356 (b) The office may not approve an applicant for the program 357 license before the applicant has been accepted as a data 358 furnisher by a consumer reporting agency. 359 (c) The program licensee shall provide each borrower with 360 the name or names of the consumer reporting agency or agencies 361 to which it will report the borrower’s payment history. 362 (7) PROGRAM LOAN UNDERWRITING.— 363 (a) The program licensee must underwrite each program loan 364 to determine a borrower’s ability and willingness to repay the 365 program loan pursuant to the program loan terms. The program 366 licensee may not make a program loan if it determines that the 367 borrower’s total monthly debt service payments at the time of 368 origination, including the program loan for which the borrower 369 is being considered and all outstanding forms of credit that can 370 be independently verified by the program licensee, exceed 50 371 percent of the borrower’s gross monthly income for a loan of not 372 more than $3,000, or exceed 36 percent of the borrower’s gross 373 monthly income for a loan of more than $3,000. 374 (b)1. The program licensee must seek information and 375 documentation pertaining to all of a borrower’s outstanding debt 376 obligations during the loan application and underwriting 377 process, including loans that are self-reported by the borrower 378 but not available through independent verification. The program 379 licensee must verify such information using a credit report from 380 at least one consumer reporting agency or through other 381 available electronic debt verification services that provide 382 reliable evidence of a borrower’s outstanding debt obligations. 383 2. The program licensee is not required to consider loans 384 made to a borrower by friends or family in determining the 385 borrower’s debt-to-income ratio. 386 (c) The program licensee must verify the borrower’s income 387 to determine the debt-to-income ratio using information from: 388 1. Electronic means or services that provide reliable 389 evidence of the borrower’s actual income; or 390 2. The Internal Revenue Service Form W-2, tax returns, 391 payroll receipts, bank statements, or other third-party 392 documents that provide reasonably reliable evidence of the 393 borrower’s actual income. 394 (8) WAIVERS.— 395 (a) A program licensee may not require, as a condition of 396 providing the program loan, that the borrower: 397 1. Waive any right, penalty, remedy, forum, or procedure 398 provided for in any law applicable to the program loan, 399 including the right to file and pursue a civil action or file a 400 complaint with or otherwise communicate with the office, a 401 court, or any other governmental entity. 402 2. Agree to the application of laws other than those of 403 this state. 404 3. Agree to resolve disputes in a jurisdiction outside of 405 this state. 406 (b) A waiver that is required as a condition of doing 407 business with the program licensee is presumed involuntary, 408 unconscionable, against public policy, and unenforceable. 409 (c) A program licensee may not refuse to do business with 410 or discriminate against a borrower or an applicant on the basis 411 of the borrower’s or applicant’s refusal to waive any right, 412 penalty, remedy, forum, or procedure, including the right to 413 file and pursue a civil action or complaint with, or otherwise 414 communicate with, the office, a court, or any other governmental 415 entity. The exercise of a person’s right to refuse to waive any 416 right, penalty, remedy, forum, or procedure, including a 417 rejection of a contract requiring a waiver, does not affect any 418 otherwise legal terms of a contract or an agreement. 419 (d) This subsection does not apply to any agreement to 420 waive any right, penalty, remedy, forum, or procedure, including 421 any agreement to arbitrate a claim or dispute after a claim or 422 dispute has arisen. This subsection does not affect the 423 enforceability or validity of any other provision of the 424 contract. 425 Section 5. Section 516.44, Florida Statutes, is created to 426 read: 427 516.44 Access partners.— 428 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a 429 program licensee and an access partner must be specified in a 430 written access partner agreement between the parties. The 431 agreement must contain the following provisions: 432 (a) The access partner agrees to comply with this section 433 and all rules adopted under this section regarding the 434 activities of access partners. 435 (b) The office has access to the access partner’s books and 436 records pertaining to the access partner’s operations under the 437 agreement with the program licensee in accordance with s. 438 516.45(3) and may examine the access partner pursuant to s. 439 516.45. 440 (2) AUTHORIZED SERVICES.—A program licensee may use the 441 services of one or more access partners as provided in this 442 section. An access partner may perform one or more of the 443 following services from its physical business location for the 444 program licensee: 445 (a) Distributing, circulating, using, or publishing printed 446 brochures, flyers, fact sheets, or other written materials 447 relating to program loans that the program licensee may make or 448 negotiate. The written materials must be reviewed and approved 449 in writing by the program licensee before being distributed, 450 circulated, used, or published. 451 (b) Providing written factual information about program 452 loan terms, conditions, or qualification requirements to a 453 prospective borrower which has been prepared by the program 454 licensee or reviewed and approved in writing by the program 455 licensee. An access partner may discuss the information with a 456 prospective borrower in general terms. 457 (c) Notifying a prospective borrower of the information 458 needed in order to complete a program loan application. 459 (d) Entering information provided by the prospective 460 borrower on a preprinted or an electronic application form or in 461 a preformatted computer database. 462 (e) Assembling credit applications and other materials 463 obtained in the course of a credit application transaction for 464 submission to the program licensee. 465 (f) Contacting the program licensee to determine the status 466 of a program loan application. 467 (g) Communicating a response that is returned by the 468 program licensee’s automated underwriting system to a borrower 469 or a prospective borrower. 470 (h) Obtaining a borrower’s signature on documents prepared 471 by the program licensee and delivering final copies of the 472 documents to the borrower. 473 (i) Disbursing program loan proceeds to a borrower if this 474 method of disbursement is acceptable to the borrower, subject to 475 the requirements of subsection (3). A loan disbursement made by 476 an access partner under this paragraph is deemed to be made by 477 the program licensee on the date that the funds are disbursed or 478 otherwise made available by the access partner to the borrower. 479 (j) Receiving a program loan payment from the borrower if 480 this method of payment is acceptable to the borrower, subject to 481 the requirements of subsection (3). 482 (k) Operating an electronic access point through which a 483 prospective borrower may directly access the website of the 484 program licensee to apply for a program loan. 485 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.— 486 (a) A loan payment made by a borrower to an access partner 487 under paragraph (2)(j) must be applied to the borrower’s program 488 loan and deemed received by the program licensee as of the date 489 on which the payment is received by the access partner. 490 (b) An access partner that receives a loan payment from a 491 borrower must deliver or cause to be delivered to the borrower a 492 plain and complete receipt showing all of the information 493 specified in s. 516.43(1)(k) at the time that the payment is 494 made by the borrower. 495 (c) A borrower who submits a loan payment to an access 496 partner under this subsection is not liable for a failure or 497 delay by the access partner in transmitting the payment to the 498 program licensee. 499 (d) An access partner that disburses or receives loan 500 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must 501 maintain records of all disbursements made and loan payments 502 received for at least 2 years. 503 (4) PROHIBITED ACTIVITIES.—An access partner may not: 504 (a) Provide counseling or advice to a borrower or 505 prospective borrower with respect to any loan term. 506 (b) Provide loan-related marketing material that has not 507 previously been approved by the program licensee to a borrower 508 or a prospective borrower. 509 (c) Negotiate a loan term between a program licensee and a 510 prospective borrower. 511 (d) Offer information pertaining to a single prospective 512 borrower to more than one program licensee. However, if a 513 program licensee has declined to offer a program loan to a 514 prospective borrower and has so notified the prospective 515 borrower in writing, the access partner may then offer 516 information pertaining to that borrower to another program 517 licensee with whom it has an access partner agreement. 518 (e) Except for the purpose of assisting a borrower in 519 obtaining a refinance program loan, offer information pertaining 520 to a prospective borrower to any program licensee if the 521 prospective borrower has an outstanding program loan. 522 (f) Charge a borrower any fee for a program loan. 523 (g) Perform in-person marketing of the program at a public 524 food service establishment as defined in s. 509.013(5), or at a 525 place where alcoholic beverages, as defined in s. 561.01(4), are 526 served for consumption. 527 (h) Perform in-person marketing of the program at a 528 location at which the primary purpose is the sale of liquor, as 529 defined in s. 565.01. 530 (5) DISCLOSURE STATEMENTS.— 531 (a) At the time that the access partner receives or 532 processes an application for a program loan, the access partner 533 shall provide the following statement to the applicant on behalf 534 of the program licensee, in at least 10-point type, and shall 535 request that the applicant acknowledge receipt of the statement 536 in writing: 537 538 Your loan application has been referred to us by 539 ...(name of access partner).... We may pay a fee to 540 ...(name of access partner)... for the successful 541 referral of your loan application. If you are approved 542 for the loan, ...(name of program licensee)... will 543 become your lender. If you have any questions about 544 your loan, now or in the future, you should direct 545 those questions to ...(name of program licensee)... by 546 ...(insert at least two different ways in which a 547 borrower may contact the program licensee).... If you 548 wish to report a complaint about ...(name of access 549 partner)... or ...(name of program licensee)... 550 regarding this loan transaction, you may contact the 551 Division of Consumer Finance of the Office of 552 Financial Regulation at 850-487-9687 or 553 http://www.flofr.com. 554 555 (b) If the loan applicant has questions about the program 556 loan which the access partner is not permitted to answer, the 557 access partner must make a good faith effort to assist the 558 applicant in making direct contact with the program licensee 559 before the program loan is consummated. 560 (6) COMPENSATION.— 561 (a) The program licensee may compensate an access partner 562 in accordance with a written agreement and a compensation 563 schedule that is agreed to by the program licensee and the 564 access partner, subject to the requirements in paragraph (b). 565 (b) The compensation of an access partner by a program 566 licensee is subject to the following requirements: 567 1. Compensation may not be paid to an access partner in 568 connection with a loan application unless the program loan is 569 consummated. 570 2. The access partner’s location for services and other 571 information required in subsection (7) must be reported to the 572 office. 573 3. Compensation paid by the program licensee to the access 574 partner may not exceed $65 per program loan, on average, plus $2 575 per payment received by the access partner on behalf of the 576 program licensee for the duration of the program loan, and may 577 not be charged directly or indirectly to the borrower. 578 (7) NOTICE TO OFFICE.—A program licensee that uses the 579 service of an access partner must notify the office, in a form 580 and manner prescribed by commission rule, within 15 days after 581 entering into a contract with an access partner regarding all of 582 the following: 583 (a) The name, business address, and licensing details of 584 the access partner and all locations at which the access partner 585 will perform services under this section. 586 (b) The name and contact information for an employee of the 587 access partner who is knowledgeable about, and has the authority 588 to execute, the access partner agreement. 589 (c) The name and contact information of one or more 590 employees of the access partner who are responsible for that 591 access partner’s referring activities on behalf of the program 592 licensee. 593 (d) A statement by the program licensee that it has 594 conducted due diligence with respect to the access partner and 595 has confirmed that none of the following apply: 596 1. The filing of a petition under the United States 597 Bankruptcy Code for bankruptcy or reorganization by the access 598 partner. 599 2. The commencement of an administrative or a judicial 600 license suspension or revocation proceeding, or the denial of a 601 license request or renewal, by any state, the District of 602 Columbia, any United States territory, or any foreign country in 603 which the access partner operates, plans to operate, or is 604 licensed to operate. 605 3. A felony indictment involving the access partner or an 606 affiliated party. 607 4. The felony conviction, guilty plea, or plea of nolo 608 contendere, regardless of adjudication, of the access partner or 609 an affiliated party. 610 5. Any suspected criminal act perpetrated in this state 611 relating to activities regulated under this chapter by the 612 access partner. 613 6. Notification by a law enforcement or prosecutorial 614 agency that the access partner is under criminal investigation, 615 including, but not limited to, subpoenas to produce records or 616 testimony and warrants issued by a court of competent 617 jurisdiction which authorize the search and seizure of any 618 records relating to a business activity regulated under this 619 chapter. 620 621 As used in this paragraph, the term “affiliated party” means a 622 director, officer, control person, employee, or foreign 623 affiliate of an access partner; or a person who has a 624 controlling interest in an access partner. 625 (e) Any other information requested by the office, subject 626 to the limitations specified in s. 516.45(3). 627 (8) NOTICE OF CHANGES.—An access partner must provide the 628 program licensee with a written notice sent by registered mail 629 within 30 days after any change is made to the information 630 specified in paragraphs (7)(a)-(c) and within 30 days after the 631 occurrence or knowledge of any of the events specified in 632 paragraph (7)(d). 633 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program 634 licensee is responsible for any act of its access partner if 635 such act is a violation of this chapter. 636 (10) RULEMAKING.—The commission shall adopt rules to 637 implement this section. 638 Section 6. Section 516.45, Florida Statutes, is created to 639 read: 640 516.45 Examinations, investigations, and grounds for 641 disciplinary action.— 642 (1) Notwithstanding any other law, the office shall examine 643 each program licensee that is accepted into the program in 644 accordance with this chapter. 645 (2) Notwithstanding subsection (1), the office may waive 646 one or more branch office examinations if the office finds that 647 such examinations are not necessary for the protection of the 648 public due to the centralized operations of the program licensee 649 or other factors acceptable to the office. 650 (3) The scope of any investigation or examination of a 651 program licensee or access partner must be limited to those 652 books, accounts, records, documents, materials, and matters 653 reasonably necessary to determine compliance with this chapter. 654 (4) A program licensee who violates any applicable 655 provision of this chapter is subject to disciplinary action 656 pursuant to s. 516.07(2). Any such disciplinary action is 657 subject to s. 120.60. The program licensee is also subject to 658 disciplinary action for a violation of s. 516.44 committed by 659 any of its access partners. 660 (5) The office may take any of the following actions 661 against an access partner who violates s. 516.44: 662 (a) Bar the access partner from performing services under 663 this chapter. 664 (b) Bar the access partner from performing services at one 665 or more of its specific locations. 666 (c) Impose an administrative fine on the access partner of 667 up to $5,000 in a calendar year. 668 (6) The commission shall adopt rules to implement this 669 section. 670 Section 7. Section 516.46, Florida Statutes, is created to 671 read: 672 516.46 Annual reports by program licensees and the office.— 673 (1) By March 15, 2021, and each year thereafter, a program 674 licensee shall file a report with the office on a form and in a 675 manner prescribed by commission rule. The report must include 676 each of the items specified in subsection (2) for the preceding 677 year using aggregated or anonymized data without reference to 678 any borrower’s nonpublic personal information or any program 679 licensee’s or access partner’s proprietary or trade secret 680 information. 681 (2) By January 1, 2022, and each year thereafter, the 682 office shall post a report on its website summarizing the use of 683 the program based on the information contained in the reports 684 filed in the preceding year by program licensees under 685 subsection (1). The office’s report must publish the information 686 in the aggregate so as not to identify data by any specific 687 program licensee. The report must specify the period to which 688 the report corresponds and must include, but is not limited to, 689 the following for that period: 690 (a) The number of applicants approved for a program license 691 by the office. 692 (b) The number of program loan applications received by 693 program licensees, the number of program loans made under the 694 program, the total amount loaned, the distribution of loan 695 lengths upon origination, and the distribution of interest rates 696 and principal amounts upon origination among those program 697 loans. 698 (c) The number of borrowers who obtained more than one 699 program loan and the distribution of the number of program loans 700 per borrower. 701 (d) Of those borrowers who obtained more than one program 702 loan and had a credit score by the time of their subsequent 703 loan, the percentage of those borrowers whose credit scores 704 increased between successive loans, based on information from at 705 least one major credit bureau, and the average size of the 706 increase. In each case, the report must include the name of the 707 credit score, such as FICO or VantageScore, which the program 708 licensee is required to disclose. 709 (e) The income distribution of borrowers upon program loan 710 origination, including the number of borrowers who obtained at 711 least one program loan and who resided in a low-income or 712 moderate-income census tract at the time of their loan 713 applications. 714 (f) The number of borrowers who obtained program loans for 715 the following purposes, based on the borrowers’ responses at the 716 time of their loan applications indicating the primary purpose 717 for which the program loans were obtained: 718 1. To pay medical expenses. 719 2. To pay for vehicle repair or a vehicle purchase. 720 3. To pay bills. 721 4. To consolidate debt. 722 5. To build or repair credit history. 723 6. To finance a small business. 724 7. To pay other expenses. 725 (g) The number of borrowers who self-report that they had a 726 bank account at the time of their loan application and the 727 number of borrowers who self-report that they did not have a 728 bank account at the time of their loan application. 729 (h) For refinance program loans: 730 1. The number and percentage of borrowers who applied for a 731 refinance program loan. 732 2. Of those borrowers who applied for a refinance program 733 loan, the number and percentage of borrowers who obtained a 734 refinance program loan. 735 (i) The performance of program loans as reflected by all of 736 the following: 737 1. The number and percentage of borrowers who experienced 738 at least one delinquency lasting between 7 and 29 days and the 739 distribution of principal loan amounts corresponding to those 740 delinquencies. 741 2. The number and percentage of borrowers who experienced 742 at least one delinquency lasting between 30 and 59 days and the 743 distribution of principal loan amounts corresponding to those 744 delinquencies. 745 3. The number and percentage of borrowers who experienced 746 at least one delinquency lasting 60 days or more and the 747 distribution of principal loan amounts corresponding to those 748 delinquencies. 749 (3) The commission shall adopt rules to implement this 750 section. 751 Section 8. Sections 516.405-516.46, Florida Statutes, are 752 repealed on July 1, 2029, unless reenacted or superseded by 753 another law enacted by the Legislature before that date. 754 Section 9. For the 2019-2020 fiscal year, the sum of 755 $407,520 in nonrecurring funds from the Administrative Trust 756 Fund is appropriated to the Office of Financial Regulation for 757 the purpose of implementing this act. 758 Section 10. This act shall take effect January 1, 2020. 759 760 ================= T I T L E A M E N D M E N T ================ 761 And the title is amended as follows: 762 Delete everything before the enacting clause 763 and insert: 764 A bill to be entitled 765 An act relating to consumer finance loans; creating s. 766 516.405, F.S.; creating the Access to Responsible 767 Credit Pilot Program within the Office of Financial 768 Regulation; providing legislative intent; creating s. 769 516.41, F.S.; defining terms; creating s. 516.42, 770 F.S.; requiring a program license from the office for 771 certain actions relating to program loans; providing 772 licensure requirements; requiring a program licensee’s 773 program branch offices to be licensed; providing 774 program branch office license and license renewal 775 requirements; providing circumstances under which the 776 office may deny initial and renewal applications; 777 requiring the Financial Services Commission to adopt 778 rules; creating s. 516.43, F.S.; providing 779 requirements for program licensees, program loans, 780 loan repayments, loan rescissions, interest rates, 781 program loan refinancing, receipts, disclosures and 782 statements provided by program licensees to borrowers, 783 origination fees, insufficient funds fees, and 784 delinquency charges; requiring program licensees to 785 provide certain credit education information to 786 borrowers and to report payment performance of 787 borrowers to a consumer reporting agency; prohibiting 788 the office from approving a program licensee applicant 789 before the applicant has been accepted as a data 790 furnisher by a consumer reporting agency; providing a 791 requirement for credit reporting; specifying program 792 loan underwriting requirements for program licensees; 793 prohibiting program licensees from making program 794 loans under certain circumstances; requiring program 795 licensees to seek certain information and 796 documentation; prohibiting program licensees from 797 requiring certain waivers from borrowers; providing 798 applicability; creating s. 516.44, F.S.; requiring all 799 arrangements between program licensees and access 800 partners to be specified in written access partner 801 agreements; providing requirements for such 802 agreements; specifying access partner services that 803 may be used by program licensees; specifying 804 procedures for borrowers’ payment receipts or access 805 partners’ disbursement of program loans; providing 806 recordkeeping requirements; prohibiting specified 807 activities by access partners; providing disclosure 808 statement requirements; providing requirements and 809 prohibitions relating to compensation paid to access 810 partners; requiring program licensees to provide the 811 office with a specified notice after contracting with 812 access partners; defining the term “affiliated party”; 813 requiring access partners to provide program licensees 814 with a certain written notice within a specified time; 815 providing that program licensees are responsible for 816 certain acts of their access partners; requiring the 817 commission to adopt rules; creating s. 516.45, F.S.; 818 requiring the office to examine each program licensee; 819 authorizing the office to waive branch office 820 examinations under certain circumstances; limiting the 821 scope of certain examinations and investigations; 822 authorizing the office to take certain disciplinary 823 action against program licensees and access partners; 824 requiring the commission to adopt rules; creating s. 825 516.46, F.S.; requiring program licensees to file an 826 annual report with the office beginning on a specified 827 date; requiring the office to post an annual report on 828 its website by a specified date; specifying 829 information to be contained in the reports; requiring 830 the commission to adopt rules; providing for future 831 repeal of the pilot program; providing an 832 appropriation; providing an effective date.