Florida Senate - 2020 SB 894 By Senator Rouson 19-01009-20 2020894__ 1 A bill to be entitled 2 An act relating to business services; creating s. 3 516.405, F.S.; creating the Access to Responsible 4 Credit Pilot Program within the Office of Financial 5 Regulation; providing legislative intent; creating s. 6 516.41, F.S.; defining terms; creating s. 516.42, 7 F.S.; requiring a program license from the office to 8 advertise, offer, or make program loans or to impose 9 certain charges or fees; providing licensure 10 requirements; requiring a program licensee’s program 11 branch offices to be licensed; providing program 12 branch office license and license renewal 13 requirements; providing circumstances under which the 14 office may deny initial and renewal applications; 15 requiring the Financial Services Commission to adopt 16 rules; creating s. 516.43, F.S.; specifying 17 requirements for program licensees, program loans, 18 loan repayments, rescissions, interest rates, program 19 loan refinancing, receipts, disclosures and statements 20 provided by program licensees to borrowers, 21 origination fees, insufficient funds fees, and 22 delinquency charges; providing that program loans may 23 be made only in specified counties; requiring that a 24 specified percentage of program loans annually issued 25 be provided to borrowers below a specified income; 26 requiring program licensees to provide certain credit 27 education information to borrowers and to report 28 payment performance of borrowers to at least two 29 consumer reporting agencies; prohibiting the office 30 from approving a program licensee applicant before the 31 applicant has been accepted as a data furnisher by a 32 consumer reporting agency; requiring program licensees 33 to provide certain credit reporting information to 34 borrowers; specifying program loan underwriting 35 requirements for program licensees; prohibiting 36 program licensees from making program loans under 37 certain circumstances; requiring program licensees to 38 seek certain information and documentation; 39 prohibiting program licensees from requiring certain 40 waivers from borrowers; providing applicability; 41 requiring program licensees to maintain a registry of 42 their access partners and annually provide a copy to 43 the office; prohibiting the office from publishing a 44 registry in its annual report; creating s. 516.44, 45 F.S.; requiring all arrangements between program 46 licensees and access partners to be specified in 47 written access partner agreements; providing 48 requirements for such agreements; specifying access 49 partner services that may be used by program 50 licensees; specifying procedures for borrowers’ 51 payment receipts or access partners’ disbursement of 52 program loans; providing recordkeeping requirements; 53 specifying activities prohibited for access partners; 54 providing disclosure statement requirements; providing 55 requirements and prohibitions relating to compensation 56 paid to access partners; requiring program licensees 57 to provide the office with a specified notice after 58 contracting with access partners; defining the term 59 “affiliated party”; requiring access partners to 60 provide program licensees with a certain written 61 notice within a specified time; providing that program 62 licensees are responsible for violations by their 63 access partners; requiring the commission to adopt 64 rules; creating s. 516.45, F.S.; requiring the office 65 to examine each program licensee; authorizing the 66 office to waive branch office examinations under 67 certain circumstances; limiting the scope of certain 68 examinations and investigations; authorizing the 69 office to take certain disciplinary action against 70 program licensees and access partners; requiring the 71 commission to adopt rules; creating s. 516.46, F.S.; 72 requiring program licensees to file an annual report 73 with the office; requiring the office to post an 74 annual report on its website; specifying information 75 to be contained in the reports; requiring the 76 commission to adopt rules; providing for future repeal 77 of the pilot program; providing an appropriation; 78 providing an effective date. 79 80 Be It Enacted by the Legislature of the State of Florida: 81 82 Section 1. Section 516.405, Florida Statutes, is created to 83 read: 84 516.405 Access to Responsible Credit Pilot Program.— 85 (1) The Access to Responsible Credit Pilot Program is 86 created within the Office of Financial Regulation to allow more 87 Floridians to obtain responsible consumer finance loans in 88 principal amounts of at least $300 but not more than $7,500. 89 (2) The pilot program is intended to assist consumers in 90 building their credit and to provide additional consumer 91 protections for these loans which exceed current protections 92 under general law. 93 Section 2. Section 516.41, Florida Statutes, is created to 94 read: 95 516.41 Definitions.—As used in ss. 516.405-516.46, the 96 term: 97 (1) “Access partner” means an entity that, at one or more 98 physical business locations owned or rented by the entity, 99 performs one or more of the services authorized in s. 516.44(2) 100 on behalf of a program licensee. 101 (a) The term includes only the following entities and 102 agents of the entities: 103 1. A bank as defined in s. 658.12. 104 2. A national bank as defined in s. 658.12. 105 3. A credit union as defined in s. 657.002. 106 4. An agent as defined in s. 626.015. 107 5. An insurance agency as defined in s. 626.015. 108 6. A tax preparation service. 109 7. A money services business as defined in s. 560.103. 110 8. An authorized vendor as defined in s. 560.103. 111 9. A law office. 112 10. An investment adviser as defined in s. 517.021. 113 11. A financial services provider. 114 12. A public accounting firm as defined in s. 473.302(7). 115 (b) The term does not include a credit service organization 116 as defined in s. 817.7001 or a loan broker as defined in s. 117 687.14. 118 (2) “Consumer reporting agency” has the same meaning as the 119 term “consumer reporting agency that compiles and maintains 120 files on consumers on a nationwide basis” in the Fair Credit 121 Reporting Act, 15 U.S.C. s. 1681a(p). 122 (3) “Credit score” has the same meaning as in the Fair 123 Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A). 124 (4) “Data furnisher” has the same meaning as the term 125 “furnisher” in 12 C.F.R. s. 1022.41(c). 126 (5) “Pilot program” or “program” means the Access to 127 Responsible Credit Pilot Program. 128 (6) “Pilot program license” or “program license” means a 129 license issued under ss. 516.405-516.46 authorizing a program 130 licensee to make and collect program loans. 131 (7) “Program branch office license” means a license issued 132 under the program for each location, other than a program 133 licensee’s or access partner’s principal place of business: 134 (a) The address of which appears on business cards, 135 stationery, or advertising used by the program licensee in 136 connection with business conducted under this chapter; 137 (b) At which the program licensee’s name, advertising or 138 promotional materials, or signage suggests that program loans 139 are originated, negotiated, funded, or serviced by the program 140 licensee; or 141 (c) At which program loans are originated, negotiated, 142 funded, or serviced by the program licensee. 143 (8) “Program licensee” means a person who is licensed to 144 make and collect loans under this chapter and who is approved by 145 the office to participate in the program. 146 (9) “Program loan” means a consumer finance loan with a 147 principal amount of at least $300, but not more than $7,500, 148 originated pursuant to ss. 516.405–516.46, excluding the amount 149 of the origination fee authorized under s. 516.43(3). 150 (10) “Refinance program loan” means a program loan that 151 extends additional principal to a borrower and replaces and 152 revises an existing program loan contract with the borrower. A 153 refinance program loan does not include an extension, a 154 deferral, or a rewrite of the program loan. 155 Section 3. Section 516.42, Florida Statutes, is created to 156 read: 157 516.42 Requirements for program participation; program 158 application requirements.— 159 (1) A person may not advertise, offer, or make a program 160 loan, or impose any charges or fees pursuant to s. 516.43, 161 unless the person obtains a pilot program license from the 162 office. 163 (2) In order to obtain a pilot program license, a person 164 must: 165 (a)1. Be licensed to make and collect consumer finance 166 loans under s. 516.05; or 167 2. Submit the application for the license required in s. 168 516.03 concurrently with the application for the program 169 license. The application required by s. 516.03 must be approved 170 and the license under that section must be issued in order to 171 obtain the program license. 172 (b) Be accepted as a data furnisher by a consumer reporting 173 agency. 174 (c) Demonstrate financial responsibility, experience, 175 character, or general fitness, such as to command the confidence 176 of the public and to warrant the belief that the business 177 operated at the licensed or proposed location is lawful, honest, 178 fair, efficient, and within the purposes of this chapter. 179 (d) Not be subject to the issuance of a cease and desist 180 order; the issuance of a removal order; the denial, suspension, 181 or revocation of a license; or any other action within the 182 authority of the office, any financial regulatory agency in this 183 state, or any other state or federal regulatory agency which 184 affects the ability of the applicant to participate in the 185 program. 186 (3)(a) A program applicant must file with the office a 187 digital application in a form and manner prescribed by 188 commission rule which contains all of the following information 189 with respect to the applicant: 190 1. The legal business name and any other name under which 191 the applicant operates. 192 2. The applicant’s main address. 193 3. The applicant’s telephone number and e-mail address. 194 4. The address of each program branch office. 195 5. The name, title, address, telephone number, and e-mail 196 address of the applicant’s contact person. 197 6. The applicant’s license number, if the applicant is 198 licensed under s. 516.05. 199 7. A statement as to whether the applicant intends to use 200 the services of one or more access partners under s. 516.44. 201 8. A statement that the applicant has been accepted as a 202 data furnisher by a consumer reporting agency and will report to 203 a consumer reporting agency the payment performance of each 204 borrower on all program loans. 205 9. The signature and certification of an authorized person 206 of the applicant. 207 (b) A person who desires to participate in the program but 208 who is not licensed to make consumer finance loans pursuant to 209 s. 516.05 must concurrently submit the following digital 210 applications in a form and manner specified in this chapter to 211 the office: 212 1. An application pursuant to s. 516.03 for licensure to 213 make consumer finance loans. 214 2. An application for admission to the program in 215 accordance with paragraph (a). 216 (4) Except as otherwise provided in ss. 516.405-516.46, a 217 program licensee is subject to all the laws and rules governing 218 consumer finance loans under this chapter. A program license 219 must be renewed biennially. 220 (5) Notwithstanding s. 516.05(3), only one program license 221 is required for a person to make program loans under ss. 222 516.405-516.46, regardless of whether the program licensee 223 offers program loans to prospective borrowers at its own 224 physical business locations, through access partners, or via an 225 electronic access point through which a prospective borrower may 226 directly access the website of the program licensee. 227 (6) Each branch office of a program licensee must be 228 licensed under this section. 229 (7) The office shall issue a program branch office license 230 to a program licensee after the office determines that the 231 program licensee has submitted a completed electronic 232 application for a program branch office license in a form 233 prescribed by commission rule. The program branch office license 234 must be issued in the name of the program licensee that 235 maintains the branch office. An application is considered 236 received for purposes of s. 120.60 upon receipt of a completed 237 application form. The application for a program branch office 238 license must contain the following information: 239 (a) The legal business name and any other name under which 240 the applicant operates. 241 (b) The applicant’s main address. 242 (c) The applicant’s telephone number and e-mail address. 243 (d) The address of each program branch office. 244 (e) The name, title, address, telephone number, and e-mail 245 address of the applicant’s contact person. 246 (f) The applicant’s license number, if the applicant is 247 licensed under this chapter. 248 (g) The signature and certification of an authorized person 249 of the applicant. 250 (8) Except as provided in subsection (9), a program branch 251 office license must be renewed biennially at the time of 252 renewing the program license. 253 (9) Notwithstanding subsection (7), the office may deny an 254 initial or renewal application for a program license or program 255 branch office license if the applicant or any person with power 256 to direct the management or policies of the applicant’s 257 business: 258 (a) Fails to demonstrate financial responsibility, 259 experience, character, or general fitness, such as to command 260 the confidence of the public and to warrant the belief that the 261 business operated at the licensed or proposed location is 262 lawful, honest, fair, efficient, and within the purposes of this 263 chapter. 264 (b) Pled nolo contendere to, or was convicted or found 265 guilty of, a crime involving fraud, dishonest dealing, or any 266 act of moral turpitude, regardless of whether adjudication was 267 withheld. 268 (c) Is subject to the issuance of a cease and desist order; 269 the issuance of a removal order; the denial, suspension, or 270 revocation of a license; or any other action within the 271 authority of the office, any financial regulatory agency in this 272 state, or any other state or federal regulatory agency which 273 affects the applicant’s ability to participate in the program. 274 (10) The commission shall adopt rules to implement this 275 section. 276 Section 4. Section 516.43, Florida Statutes, is created to 277 read: 278 516.43 Requirements for program loans.— 279 (1) REQUIREMENTS.—A program licensee shall comply with each 280 of the following requirements in making program loans: 281 (a) A program loan must be unsecured. 282 (b) A program loan must have: 283 1. A term of at least 120 days, but not more than 36 284 months, for a loan with a principal balance upon origination of 285 at least $300, but not more than $3,000. 286 2. A term of at least 12 months, but not more than 60 287 months, for a loan with a principal balance upon origination of 288 more than $3,000. 289 (c) A borrower may not receive a program loan for a 290 principal balance exceeding $5,000 unless: 291 1. The borrower has paid in full the outstanding principal, 292 interest, and fees on a previous program loan; 293 2. The borrower’s credit score increased from the time of 294 application for the borrower’s first consummated program loan; 295 and 296 3. The borrower was never delinquent for more than 7 days 297 on a previous program loan. 298 (d) A program loan may not impose a prepayment penalty. A 299 program loan must be repayable by the borrower in substantially 300 equal, periodic installments, except that the final payment may 301 be less than the amount of the prior installments. Installments 302 must be due either every 2 weeks, semimonthly, or monthly. 303 (e) A program loan must include a borrower’s right to 304 rescind the program loan by notifying the program licensee of 305 the borrower’s intent to rescind the program loan and returning 306 the principal advanced by the end of the business day after the 307 day the program loan is consummated. 308 (f) Notwithstanding s. 516.031, the maximum annual interest 309 rate charged on a program loan to the borrower, which must be 310 fixed for the duration of the program loan, is 36 percent on 311 that portion of the unpaid principal balance up to and including 312 $3,000; 30 percent on that portion of the unpaid principal 313 balance exceeding $3,000 and up to and including $4,000; and 24 314 percent on that portion of the unpaid principal balance 315 exceeding $4,000 and up to and including $7,500. The original 316 principal amount of the program loan is equal to the amount 317 financed as defined by the federal Truth in Lending Act and 318 Regulation Z of the Board of Governors of the Federal Reserve 319 System. In determining compliance with the maximum annual 320 interest rates in this paragraph, the computations used must be 321 simple interest through the application of a daily periodic rate 322 to the actual unpaid principal balance each day and may not be 323 added-on interest or any other computations. 324 (g) If two or more interest rates are applied to the 325 principal amount of a program loan, the program licensee may 326 charge, contract for, and receive interest at that single annual 327 percentage rate that, if applied according to the actuarial 328 method to each of the scheduled periodic balances of principal, 329 would produce at maturity the same total amount of interest as 330 would result from the application of the two or more rates 331 otherwise permitted, based upon the assumption that all payments 332 are made as agreed. 333 (h) The program licensee shall reduce the interest rates 334 specified in paragraph (f) on each subsequent program loan to 335 the same borrower by a minimum of 1 percent, up to a maximum of 336 6 percent, if all of the following conditions are met: 337 1. The subsequent program loan is originated within 180 338 days after the prior program loan is fully repaid. 339 2. The borrower was never more than 15 days delinquent on 340 the prior program loan. 341 3. The prior program loan was outstanding for at least one 342 half of its original term before its repayment. 343 (i) The program licensee may not induce or permit any 344 person to become obligated to the program licensee, directly or 345 contingently, or both, under more than one program loan at the 346 same time with the program licensee. 347 (j) The program licensee may not refinance a program loan 348 unless all of the following conditions are met at the time the 349 borrower submits an application to refinance: 350 1. The principal amount payable may not include more than 351 60 days’ unpaid interest accrued on the previous program loan 352 pursuant to s. 516.031(5). 353 2. For a program loan with an original term up to and 354 including 25 months, the borrower has repaid at least 60 percent 355 of the outstanding principal remaining on his or her existing 356 program loan. 357 3. For a program loan with an original term of more than 25 358 months, but not more than 60 months, the borrower has made 359 current payments for at least 9 months on his or her existing 360 program loan. 361 4. The borrower is current on payments for his or her 362 existing program loan. 363 5. The program licensee must underwrite the new program 364 loan in accordance with subsection (7). 365 (k) In lieu of the provisions of s. 687.08, the program 366 licensee or, if applicable, its approved access partner shall 367 make available to the borrower by electronic or physical means a 368 plain and complete receipt of payment at the time that the 369 borrower makes a loan payment. For audit purposes, the program 370 licensee must maintain an electronic record for each receipt 371 made available to a borrower. The electronic record must include 372 a copy of the receipt and the date and time that the receipt was 373 generated. Each receipt made available to the borrower must show 374 all of the following: 375 1. The name of the borrower. 376 2. The name of the access partner, if applicable. 377 3. The total payment amount received. 378 4. The date of payment. 379 5. The program loan balance before and after application of 380 the payment. 381 6. The amount of the payment which was applied to the 382 principal, interest, and fees. 383 7. The type of payment made by the borrower. 384 8. The following statement, prominently displayed in a type 385 size equal to or larger than the type size used to display the 386 other items on the receipt: “If you have any questions about 387 your loan now or in the future, you should direct those 388 questions to ...(name of program licensee)... by ...(at least 389 two different ways in which a borrower may contact the program 390 licensee)....” 391 (l) A program licensee may make program loans only to 392 residents of Broward, Miami-Dade, and Palm Beach Counties. 393 (m) At least 85 percent of program loans annually issued by 394 a program licensee must be provided to borrowers whose gross 395 monthly income is less than $6,250. 396 (2) WRITTEN DISCLOSURES AND STATEMENTS.— 397 (a) Notwithstanding s. 516.15(1), the loan contract and all 398 written disclosures and statements may be provided by a program 399 licensee to a borrower in English or in the language in which 400 the loan is negotiated. 401 (b) The program licensee shall provide to a borrower all 402 the statements required of licensees under s. 516.15. 403 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program 404 licensee may: 405 (a) Contract for and receive an origination fee from a 406 borrower on a program loan. The program licensee may either 407 deduct the origination fee from the principal amount of the loan 408 disbursed to the borrower or capitalize the origination fee into 409 the principal balance of the loan. The origination fee is fully 410 earned and nonrefundable immediately upon the making of the 411 program loan and may not exceed the lesser of 6 percent of the 412 principal amount of the program loan made to the borrower, 413 exclusive of the origination fee, or $90. 414 (b) Not charge a borrower an origination fee more than 415 twice in any 12-month period. 416 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A 417 program licensee may: 418 (a) Notwithstanding s. 516.031, require payment from a 419 borrower of no more than $20 for fees incurred by the program 420 licensee from a dishonored payment due to insufficient funds of 421 the borrower. 422 (b) Notwithstanding s. 516.031(3)(a)9., contract for and 423 receive a delinquency charge for each payment in default for at 424 least 7 days if the charge is agreed upon, in writing, between 425 the program licensee and the borrower before it is imposed. 426 Delinquency charges may be imposed as follows: 427 1. For payments due monthly, the delinquency charge for a 428 payment in default may not exceed $15. 429 2. For payments due semimonthly, the delinquency charge for 430 a payment in default may not exceed $7.50. 431 3. For payments due every 2 weeks, the delinquency charge 432 for a payment in default may not exceed $7.50 if two payments 433 are due within the same calendar month, and may not exceed $5 if 434 three payments are due within the same calendar month. 435 436 The program licensee, or any wholly owned subsidiary of the 437 program licensee, may not sell or assign an unpaid debt to an 438 independent third party for collection purposes unless the debt 439 has been delinquent for at least 30 days. 440 (5) CREDIT EDUCATION.—Before disbursement of program loan 441 proceeds to the borrower, the program licensee must: 442 (a) Direct the borrower to the consumer credit counseling 443 services offered by an independent third party; or 444 (b) Provide a credit education program or seminar to the 445 borrower. The borrower is not required to participate in the 446 education program or seminar. A credit education program or 447 seminar offered pursuant to this paragraph must be provided at 448 no cost to the borrower. 449 (6) CREDIT REPORTING.— 450 (a) The program licensee shall report each borrower’s 451 payment performance to at least two consumer reporting agencies. 452 (b) The office may not approve an applicant for the program 453 license before the applicant has been accepted as a data 454 furnisher by a consumer reporting agency. 455 (c) The program licensee shall provide each borrower with 456 the names of the consumer reporting agencies to which it will 457 report the borrower’s payment history. 458 (7) PROGRAM LOAN UNDERWRITING.— 459 (a) The program licensee must underwrite each program loan 460 to determine a borrower’s ability and willingness to repay the 461 program loan pursuant to the program loan terms. The program 462 licensee may not make a program loan if it determines that the 463 borrower’s total monthly debt service payments at the time of 464 origination, including the program loan for which the borrower 465 is being considered and all outstanding forms of credit that can 466 be independently verified by the program licensee, exceed 50 467 percent of the borrower’s gross monthly income for a loan of not 468 more than $3,000, or exceed 36 percent of the borrower’s gross 469 monthly income for a loan of more than $3,000. 470 (b)1. The program licensee must seek information and 471 documentation pertaining to all of a borrower’s outstanding debt 472 obligations during the loan application and underwriting 473 process, including loans that are self-reported by the borrower 474 but not available through independent verification. The program 475 licensee must verify such information using a credit report from 476 at least one consumer reporting agency or through other 477 available electronic debt verification services that provide 478 reliable evidence of a borrower’s outstanding debt obligations. 479 2. The program licensee is not required to consider loans 480 made to a borrower by friends or family in determining the 481 borrower’s debt-to-income ratio. 482 (c) The program licensee must verify the borrower’s income 483 to determine the debt-to-income ratio using information from: 484 1. Electronic means or services that provide reliable 485 evidence of the borrower’s actual income; or 486 2. The Internal Revenue Service Form W-2, tax returns, 487 payroll receipts, bank statements, or other third-party 488 documents that provide reasonably reliable evidence of the 489 borrower’s actual income. 490 (8) WAIVERS.— 491 (a) A program licensee may not require, as a condition of 492 providing the program loan, that the borrower: 493 1. Waive any right, penalty, remedy, forum, or procedure 494 provided for in any law applicable to the program loan, 495 including the right to file and pursue a civil action or file a 496 complaint with or otherwise communicate with the office, a 497 court, or any other governmental entity. 498 2. Agree to the application of laws other than those of 499 this state. 500 3. Agree to resolve disputes in a jurisdiction outside of 501 this state. 502 (b) A waiver that is required as a condition of doing 503 business with the program licensee is presumed involuntary, 504 unconscionable, against public policy, and unenforceable. 505 (c) A program licensee may not refuse to do business with 506 or discriminate against a borrower or an applicant on the basis 507 of the borrower’s or applicant’s refusal to waive any right, 508 penalty, remedy, forum, or procedure, including the right to 509 file and pursue a civil action or complaint with, or otherwise 510 communicate with, the office, a court, or any other governmental 511 entity. The exercise of a person’s right to refuse to waive any 512 right, penalty, remedy, forum, or procedure, including a 513 rejection of a contract requiring a waiver, does not affect any 514 otherwise legal terms of a contract or an agreement. 515 (d) This subsection does not apply to any agreement to 516 waive any right, penalty, remedy, forum, or procedure, including 517 any agreement to arbitrate a claim or dispute after a claim or 518 dispute has arisen. This subsection does not affect the 519 enforceability or validity of any other provision of the 520 contract. 521 (9) REGISTRY OF ACCESS PARTNERS.—A program licensee shall 522 maintain a registry of all access partners that provide services 523 to the program licensee. The program licensee shall provide a 524 copy of the registry to the office at the time the program 525 licensee files its report pursuant to s. 516.46(1). The office 526 may not publish a registry in its report under s. 516.46(2). 527 Section 5. Section 516.44, Florida Statutes, is created to 528 read: 529 516.44 Access partners.— 530 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a 531 program licensee and an access partner must be specified in a 532 written access partner agreement between the parties. The 533 agreement must contain the following provisions: 534 (a) The access partner agrees to comply with this section 535 and all rules adopted under this section regarding the 536 activities of access partners. 537 (b) The office has access to the access partner’s books and 538 records pertaining to the access partner’s operations under the 539 agreement with the program licensee in accordance with s. 540 516.45(3) and may examine the access partner pursuant to s. 541 516.45. 542 (2) AUTHORIZED SERVICES.—A program licensee may use the 543 services of one or more access partners as provided in this 544 section. An access partner may perform one or more of the 545 following services from its physical business location for the 546 program licensee: 547 (a) Distributing, circulating, using, or publishing printed 548 brochures, flyers, fact sheets, or other written materials 549 relating to program loans that the program licensee may make or 550 negotiate. The written materials must be reviewed and approved 551 in writing by the program licensee before being distributed, 552 circulated, used, or published. 553 (b) Providing written factual information about program 554 loan terms, conditions, or qualification requirements to a 555 prospective borrower which has been prepared by the program 556 licensee or reviewed and approved in writing by the program 557 licensee. An access partner may discuss the information with a 558 prospective borrower in general terms. 559 (c) Notifying a prospective borrower of the information 560 needed in order to complete a program loan application. 561 (d) Entering information provided by the prospective 562 borrower on a preprinted or an electronic application form or in 563 a preformatted computer database. 564 (e) Assembling credit applications and other materials 565 obtained in the course of a credit application transaction for 566 submission to the program licensee. 567 (f) Contacting the program licensee to determine the status 568 of a program loan application. 569 (g) Communicating a response that is returned by the 570 program licensee’s automated underwriting system to a borrower 571 or a prospective borrower. 572 (h) Obtaining a borrower’s signature on documents prepared 573 by the program licensee and delivering final copies of the 574 documents to the borrower. 575 (i) Disbursing program loan proceeds to a borrower if this 576 method of disbursement is acceptable to the borrower, subject to 577 the requirements of subsection (3). A loan disbursement made by 578 an access partner under this paragraph is deemed to be made by 579 the program licensee on the date that the funds are disbursed or 580 otherwise made available by the access partner to the borrower. 581 (j) Receiving a program loan payment from the borrower if 582 this method of payment is acceptable to the borrower, subject to 583 the requirements of subsection (3). 584 (k) Operating an electronic access point through which a 585 prospective borrower may directly access the website of the 586 program licensee to apply for a program loan. 587 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.— 588 (a) A loan payment made by a borrower to an access partner 589 under paragraph (2)(j) must be applied to the borrower’s program 590 loan and deemed received by the program licensee as of the date 591 on which the payment is received by the access partner. 592 (b) An access partner that receives a loan payment from a 593 borrower must deliver or cause to be delivered to the borrower a 594 plain and complete receipt showing all of the information 595 specified in s. 516.43(1)(k) at the time that the borrower makes 596 the payment. 597 (c) A borrower who submits a loan payment to an access 598 partner under this subsection is not liable for a failure or 599 delay by the access partner in transmitting the payment to the 600 program licensee. 601 (d) An access partner that disburses or receives loan 602 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must 603 maintain records of all disbursements made and loan payments 604 received for at least 2 years. 605 (4) PROHIBITED ACTIVITIES.—An access partner may not: 606 (a) Provide counseling or advice to a borrower or 607 prospective borrower with respect to any loan term. 608 (b) Provide loan-related marketing material that has not 609 previously been approved by the program licensee to a borrower 610 or a prospective borrower. 611 (c) Negotiate a loan term between a program licensee and a 612 prospective borrower. 613 (d) Offer information pertaining to a single prospective 614 borrower to more than one program licensee. However, if a 615 program licensee has declined to offer a program loan to a 616 prospective borrower and has so notified the prospective 617 borrower in writing, the access partner may then offer 618 information pertaining to that borrower to another program 619 licensee with whom it has an access partner agreement. 620 (e) Except for the purpose of assisting a borrower in 621 obtaining a refinance program loan, offer information pertaining 622 to a prospective borrower to any program licensee if the 623 prospective borrower has an outstanding program loan. 624 (f) Charge a borrower any fee for a program loan. 625 (g) Perform any service for a program licensee at a 626 pawnshop as defined in s. 539.001(2). 627 (h) Perform any service for a program licensee at a pari 628 mutuel facility as defined in s. 550.002, or at any facility 629 where covered games, as authorized under s. 285.710, are 630 conducted. 631 (5) DISCLOSURE STATEMENTS.— 632 (a) At the time that the access partner receives or 633 processes an application for a program loan, the access partner 634 shall provide the following statement to the applicant on behalf 635 of the program licensee, in at least 10-point type, and shall 636 request that the applicant acknowledge receipt of the statement 637 in writing: 638 639 Your loan application has been referred to us by 640 ...(name of access partner).... We may pay a fee to 641 ...(name of access partner)... for the successful 642 referral of your loan application. If you are approved 643 for the loan, ...(name of program licensee)... will 644 become your lender. If you have any questions about 645 your loan, now or in the future, you should direct 646 those questions to ...(name of program licensee)... by 647 ...(insert at least two different ways in which a 648 borrower may contact the program licensee).... If you 649 wish to report a complaint about ...(name of access 650 partner)... or ...(name of program licensee)... 651 regarding this loan transaction, you may contact the 652 Division of Consumer Finance of the Office of 653 Financial Regulation at (850) 487-9687 or 654 http://www.flofr.com. 655 656 (b) If the loan applicant has questions about the program 657 loan which the access partner is not permitted to answer, the 658 access partner must make a good faith effort to assist the 659 applicant in making direct contact with the program licensee 660 before the program loan is consummated. 661 (6) COMPENSATION.— 662 (a) The program licensee may compensate an access partner 663 in accordance with a written agreement and a compensation 664 schedule that is agreed to by the program licensee and the 665 access partner, subject to the requirements in paragraph (b). 666 (b) The compensation of an access partner by a program 667 licensee is subject to the following requirements: 668 1. Compensation may not be paid to an access partner in 669 connection with a loan application unless the program loan is 670 consummated. 671 2. The access partner’s location for services and other 672 information required in subsection (7) must be reported to the 673 office. 674 3. Compensation paid by the program licensee to the access 675 partner may not exceed $65 per program loan, on average, plus $2 676 per payment received by the access partner on behalf of the 677 program licensee for the duration of the program loan, and may 678 not be charged directly or indirectly to the borrower. 679 (7) NOTICE TO OFFICE.—A program licensee that uses the 680 service of an access partner must notify the office, in a form 681 and manner prescribed by commission rule, within 15 days after 682 entering into a contract with an access partner regarding all of 683 the following: 684 (a) The name, business address, and licensing details of 685 the access partner and all locations at which the access partner 686 will perform services under this section. 687 (b) The name and contact information for an employee of the 688 access partner who is knowledgeable about, and has the authority 689 to execute, the access partner agreement. 690 (c) The name and contact information of one or more 691 employees of the access partner who are responsible for that 692 access partner’s referring activities on behalf of the program 693 licensee. 694 (d) A statement by the program licensee that it has 695 conducted due diligence with respect to the access partner and 696 has confirmed that none of the following applies: 697 1. The filing of a petition under the United States 698 Bankruptcy Code for bankruptcy or reorganization by the access 699 partner. 700 2. The commencement of an administrative or a judicial 701 license suspension or revocation proceeding, or the denial of a 702 license request or renewal, by any state, the District of 703 Columbia, any United States territory, or any foreign country in 704 which the access partner operates, plans to operate, or is 705 licensed to operate. 706 3. A felony indictment involving the access partner or an 707 affiliated party. 708 4. The felony conviction, guilty plea, or plea of nolo 709 contendere, regardless of adjudication, of the access partner or 710 an affiliated party. 711 5. Any suspected criminal act perpetrated in this state 712 relating to activities regulated under this chapter by the 713 access partner. 714 6. Notification by a law enforcement or prosecutorial 715 agency that the access partner is under criminal investigation, 716 including, but not limited to, subpoenas to produce records or 717 testimony and warrants issued by a court of competent 718 jurisdiction which authorize the search and seizure of any 719 records relating to a business activity regulated under this 720 chapter. 721 722 As used in this paragraph, the term “affiliated party” means a 723 director, officer, control person, employee, or foreign 724 affiliate of an access partner; or a person who has a 725 controlling interest in an access partner. 726 (e) Any other information requested by the office, subject 727 to the limitations specified in s. 516.45(3). 728 (8) NOTICE OF CHANGES.—An access partner must provide the 729 program licensee with a written notice sent by registered mail 730 within 30 days after any change is made to the information 731 specified in paragraphs (7)(a)-(c) and within 30 days after the 732 occurrence or knowledge of any of the events specified in 733 paragraph (7)(d). 734 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program 735 licensee is responsible for any act of its access partner if the 736 act is a violation of this chapter. 737 (10) RULEMAKING.—The commission shall adopt rules to 738 implement this section. 739 Section 6. Section 516.45, Florida Statutes, is created to 740 read: 741 516.45 Examinations, investigations, and grounds for 742 disciplinary action.— 743 (1) Notwithstanding any other law, the office shall examine 744 each program licensee that is accepted into the program in 745 accordance with this chapter. 746 (2) Notwithstanding subsection (1), the office may waive 747 one or more branch office examinations if the office finds that 748 such examinations are not necessary for the protection of the 749 public due to the centralized operations of the program licensee 750 or other factors acceptable to the office. 751 (3) The scope of any investigation or examination of a 752 program licensee or access partner must be limited to those 753 books, accounts, records, documents, materials, and matters 754 reasonably necessary to determine compliance with this chapter. 755 (4) A program licensee who violates any applicable 756 provision of this chapter is subject to disciplinary action 757 pursuant to s. 516.07(2). Any such disciplinary action is 758 subject to s. 120.60. The program licensee is also subject to 759 disciplinary action for a violation of s. 516.44 committed by 760 any of its access partners. 761 (5) The office may take any of the following actions 762 against an access partner who violates s. 516.44: 763 (a) Bar the access partner from performing services under 764 this chapter. 765 (b) Bar the access partner from performing services at one 766 or more of its specific locations. 767 (c) Impose an administrative fine on the access partner of 768 up to $5,000 in a calendar year. 769 (6) The commission shall adopt rules to implement this 770 section. 771 Section 7. Section 516.46, Florida Statutes, is created to 772 read: 773 516.46 Annual reports by program licensees and the office.— 774 (1) By March 15, 2022, and each year thereafter, a program 775 licensee shall file a report with the office on a form and in a 776 manner prescribed by commission rule. The report must include 777 each of the items specified in subsection (2) for the preceding 778 year using aggregated or anonymized data without reference to 779 any borrower’s nonpublic personal information or any program 780 licensee’s or access partner’s proprietary or trade secret 781 information. 782 (2) By January 1, 2023, and each year thereafter, the 783 office shall post a report on its website summarizing the use of 784 the program based on the information contained in the reports 785 filed in the preceding year by program licensees under 786 subsection (1). The office’s report must publish the information 787 in the aggregate so as not to identify data by any specific 788 program licensee. The report must specify the period to which 789 the report corresponds and must include, but is not limited to, 790 the following for that period: 791 (a) The number of applicants approved for a program license 792 by the office. 793 (b) The number of program loan applications received by 794 program licensees, the number of program loans made under the 795 program, the total amount loaned, the distribution of loan 796 lengths upon origination, and the distribution of interest rates 797 and principal amounts upon origination among those program 798 loans. 799 (c) The number of borrowers who obtained more than one 800 program loan and the distribution of the number of program loans 801 per borrower. 802 (d) Of those borrowers who obtained more than one program 803 loan and had a credit score by the time of their subsequent 804 loan, the percentage of those borrowers whose credit scores 805 increased between successive loans, based on information from at 806 least one major credit bureau, and the average size of the 807 increase. In each case, the report must include the name of the 808 credit score, such as FICO or VantageScore, which the program 809 licensee is required to disclose. 810 (e) The income distribution of borrowers upon program loan 811 origination, including the number of borrowers who obtained at 812 least one program loan and who resided in a low-income or 813 moderate-income census tract at the time of their loan 814 applications. 815 (f) The number of borrowers who obtained program loans for 816 the following purposes, based on the borrowers’ responses at the 817 time of their loan applications indicating the primary purpose 818 for which the program loans were obtained: 819 1. To pay medical expenses. 820 2. To pay for vehicle repair or a vehicle purchase. 821 3. To pay bills. 822 4. To consolidate debt. 823 5. To build or repair credit history. 824 6. To finance a small business. 825 7. To pay other expenses. 826 (g) The number of borrowers who self-report that they had a 827 bank account at the time of their loan application and the 828 number of borrowers who self-report that they did not have a 829 bank account at the time of their loan application. 830 (h) For refinance program loans: 831 1. The number and percentage of borrowers who applied for a 832 refinance program loan. 833 2. Of those borrowers who applied for a refinance program 834 loan, the number and percentage of borrowers who obtained a 835 refinance program loan. 836 (i) The performance of program loans as reflected by all of 837 the following: 838 1. The number and percentage of borrowers who experienced 839 at least one delinquency lasting between 7 and 29 days and the 840 distribution of principal loan amounts corresponding to those 841 delinquencies. 842 2. The number and percentage of borrowers who experienced 843 at least one delinquency lasting between 30 and 59 days and the 844 distribution of principal loan amounts corresponding to those 845 delinquencies. 846 3. The number and percentage of borrowers who experienced 847 at least one delinquency lasting 60 days or more and the 848 distribution of principal loan amounts corresponding to those 849 delinquencies. 850 (3) The commission shall adopt rules to implement this 851 section. 852 Section 8. Sections 516.405-516.46, Florida Statutes, are 853 repealed on July 1, 2030, unless reenacted or superseded by 854 another law enacted by the Legislature before that date. 855 Section 9. For the 2020-2021 fiscal year, the sum of 856 $407,520 in nonrecurring funds from the Administrative Trust 857 Fund is appropriated to the Office of Financial Regulation for 858 the purpose of implementing this act. 859 Section 10. This act shall take effect January 1, 2021.