Florida Senate - 2020 CS for SB 894 By the Committee on Banking and Insurance; and Senators Rouson and Gruters 597-02278-20 2020894c1 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 credit union as defined in s. 657.002. 105 3. An agent as defined in s. 626.015. 106 4. An insurance agency as defined in s. 626.015. 107 5. A tax preparation service. 108 6. A money services business as defined in s. 560.103. 109 7. An authorized vendor as defined in s. 560.103. 110 8. A law office. 111 9. An investment adviser as defined in s. 517.021. 112 10. A financial services provider. 113 11. A public accounting firm as defined in s. 473.302(7). 114 (b) The term does not include a credit service organization 115 as defined in s. 817.7001 or a loan broker as defined in s. 116 687.14. 117 (2) “Consumer reporting agency” has the same meaning as the 118 term “consumer reporting agency that compiles and maintains 119 files on consumers on a nationwide basis” in the Fair Credit 120 Reporting Act, 15 U.S.C. s. 1681a(p). 121 (3) “Credit score” has the same meaning as in the Fair 122 Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A). 123 (4) “Data furnisher” has the same meaning as the term 124 “furnisher” in 12 C.F.R. s. 1022.41(c). 125 (5) “Pilot program” or “program” means the Access to 126 Responsible Credit Pilot Program. 127 (6) “Pilot program license” or “program license” means a 128 license issued under ss. 516.405-516.46 authorizing a program 129 licensee to make and collect program loans. 130 (7) “Program branch office license” means a license issued 131 under the program for each location, other than a program 132 licensee’s or access partner’s principal place of business: 133 (a) The address of which appears on business cards, 134 stationery, or advertising used by the program licensee in 135 connection with business conducted under this chapter; 136 (b) At which the program licensee’s name, advertising or 137 promotional materials, or signage suggests that program loans 138 are originated, negotiated, funded, or serviced by the program 139 licensee; or 140 (c) At which program loans are originated, negotiated, 141 funded, or serviced by the program licensee. 142 (8) “Program licensee” means a person who is licensed to 143 make and collect loans under this chapter and who is approved by 144 the office to participate in the program. 145 (9) “Program loan” means a consumer finance loan with a 146 principal amount of at least $300, but not more than $7,500, 147 originated pursuant to ss. 516.405–516.46, excluding the amount 148 of the origination fee authorized under s. 516.43(3). 149 (10) “Refinance program loan” means a program loan that 150 extends additional principal to a borrower and replaces and 151 revises an existing program loan contract with the borrower. A 152 refinance program loan does not include an extension, a 153 deferral, or a rewrite of the program loan. 154 Section 3. Section 516.42, Florida Statutes, is created to 155 read: 156 516.42 Requirements for program participation; program 157 application requirements.— 158 (1) A person may not advertise, offer, or make a program 159 loan, or impose any charges or fees pursuant to s. 516.43, 160 unless the person obtains a pilot program license from the 161 office. 162 (2) In order to obtain a pilot program license, a person 163 must: 164 (a)1. Be licensed to make and collect consumer finance 165 loans under s. 516.05; or 166 2. Submit the application for the license required in s. 167 516.03 concurrently with the application for the program 168 license. The application required by s. 516.03 must be approved 169 and the license under that section must be issued in order to 170 obtain the program license. 171 (b) Be accepted as a data furnisher by a consumer reporting 172 agency. 173 (c) Demonstrate financial responsibility, experience, 174 character, or general fitness, such as to command the confidence 175 of the public and to warrant the belief that the business 176 operated at the licensed or proposed location is lawful, honest, 177 fair, efficient, and within the purposes of this chapter. 178 (d) Not be subject to the issuance of a cease and desist 179 order; the issuance of a removal order; the denial, suspension, 180 or revocation of a license; or any other action within the 181 authority of the office, any financial regulatory agency in this 182 state, or any other state or federal regulatory agency which 183 affects the ability of the applicant to participate in the 184 program. 185 (3)(a) A program applicant must file with the office a 186 digital application in a form and manner prescribed by 187 commission rule which contains all of the following information 188 with respect to the applicant: 189 1. The legal business name and any other name under which 190 the applicant operates. 191 2. The applicant’s main address. 192 3. The applicant’s telephone number and e-mail address. 193 4. The address of each program branch office. 194 5. The name, title, address, telephone number, and e-mail 195 address of the applicant’s contact person. 196 6. The applicant’s license number, if the applicant is 197 licensed under s. 516.05. 198 7. A statement as to whether the applicant intends to use 199 the services of one or more access partners under s. 516.44. 200 8. A statement that the applicant has been accepted as a 201 data furnisher by a consumer reporting agency and will report to 202 a consumer reporting agency the payment performance of each 203 borrower on all program loans. 204 9. The signature and certification of an authorized person 205 of the applicant. 206 (b) A person who desires to participate in the program but 207 who is not licensed to make consumer finance loans pursuant to 208 s. 516.05 must concurrently submit the following digital 209 applications in a form and manner specified in this chapter to 210 the office: 211 1. An application pursuant to s. 516.03 for licensure to 212 make consumer finance loans. 213 2. An application for admission to the program in 214 accordance with paragraph (a). 215 (4) Except as otherwise provided in ss. 516.405-516.46, a 216 program licensee is subject to all the laws and rules governing 217 consumer finance loans under this chapter. A program license 218 must be renewed biennially. 219 (5) Notwithstanding s. 516.05(3), only one program license 220 is required for a person to make program loans under ss. 221 516.405-516.46, regardless of whether the program licensee 222 offers program loans to prospective borrowers at its own 223 physical business locations, through access partners, or via an 224 electronic access point through which a prospective borrower may 225 directly access the website of the program licensee. 226 (6) Each branch office of a program licensee must be 227 licensed under this section. 228 (7) The office shall issue a program branch office license 229 to a program licensee after the office determines that the 230 program licensee has submitted a completed electronic 231 application for a program branch office license in a form 232 prescribed by commission rule. The program branch office license 233 must be issued in the name of the program licensee that 234 maintains the branch office. An application is considered 235 received for purposes of s. 120.60 upon receipt of a completed 236 application form. The application for a program branch office 237 license must contain the following information: 238 (a) The legal business name and any other name under which 239 the applicant operates. 240 (b) The applicant’s main address. 241 (c) The applicant’s telephone number and e-mail address. 242 (d) The address of each program branch office. 243 (e) The name, title, address, telephone number, and e-mail 244 address of the applicant’s contact person. 245 (f) The applicant’s license number, if the applicant is 246 licensed under this chapter. 247 (g) The signature and certification of an authorized person 248 of the applicant. 249 (8) Except as provided in subsection (9), a program branch 250 office license must be renewed biennially at the time of 251 renewing the program license. 252 (9) Notwithstanding subsection (7), the office may deny an 253 initial or renewal application for a program license or program 254 branch office license if the applicant or any person with power 255 to direct the management or policies of the applicant’s 256 business: 257 (a) Fails to demonstrate financial responsibility, 258 experience, character, or general fitness, such as to command 259 the confidence of the public and to warrant the belief that the 260 business operated at the licensed or proposed location is 261 lawful, honest, fair, efficient, and within the purposes of this 262 chapter. 263 (b) Pled nolo contendere to, or was convicted or found 264 guilty of, a crime involving fraud, dishonest dealing, or any 265 act of moral turpitude, regardless of whether adjudication was 266 withheld. 267 (c) Is subject to the issuance of a cease and desist order; 268 the issuance of a removal order; the denial, suspension, or 269 revocation of a license; or any other action within the 270 authority of the office, any financial regulatory agency in this 271 state, or any other state or federal regulatory agency which 272 affects the applicant’s ability to participate in the program. 273 (10) The commission shall adopt rules to implement this 274 section. 275 Section 4. Section 516.43, Florida Statutes, is created to 276 read: 277 516.43 Requirements for program loans.— 278 (1) REQUIREMENTS.—A program licensee shall comply with each 279 of the following requirements in making program loans: 280 (a) A program loan must be unsecured. 281 (b) A program loan must have: 282 1. A term of at least 120 days, but not more than 36 283 months, for a loan with a principal balance upon origination of 284 at least $300, but not more than $3,000. 285 2. A term of at least 12 months, but not more than 60 286 months, for a loan with a principal balance upon origination of 287 more than $3,000. 288 (c) A borrower may not receive a program loan for a 289 principal balance exceeding $5,000 unless: 290 1. The borrower has paid in full the outstanding principal, 291 interest, and fees on a previous program loan; 292 2. The borrower’s credit score increased from the time of 293 application for the borrower’s first consummated program loan; 294 and 295 3. The borrower was never delinquent for more than 7 days 296 on a previous program loan. 297 (d) A program loan may not impose a prepayment penalty. A 298 program loan must be repayable by the borrower in substantially 299 equal, periodic installments, except that the final payment may 300 be less than the amount of the prior installments. Installments 301 must be due either every 2 weeks, semimonthly, or monthly. 302 (e) A program loan must include a borrower’s right to 303 rescind the program loan by notifying the program licensee of 304 the borrower’s intent to rescind the program loan and returning 305 the principal advanced by the end of the business day after the 306 day the program loan is consummated. 307 (f) Notwithstanding s. 516.031, the maximum annual interest 308 rate charged on a program loan to the borrower, which must be 309 fixed for the duration of the program loan, is 36 percent on 310 that portion of the unpaid principal balance up to and including 311 $3,000; 30 percent on that portion of the unpaid principal 312 balance exceeding $3,000 and up to and including $4,000; and 24 313 percent on that portion of the unpaid principal balance 314 exceeding $4,000 and up to and including $7,500. The original 315 principal amount of the program loan is equal to the amount 316 financed as defined by the federal Truth in Lending Act and 317 Regulation Z of the Board of Governors of the Federal Reserve 318 System. In determining compliance with the maximum annual 319 interest rates in this paragraph, the computations used must be 320 simple interest through the application of a daily periodic rate 321 to the actual unpaid principal balance each day and may not be 322 added-on interest or any other computations. 323 (g) If two or more interest rates are applied to the 324 principal amount of a program loan, the program licensee may 325 charge, contract for, and receive interest at that single annual 326 percentage rate that, if applied according to the actuarial 327 method to each of the scheduled periodic balances of principal, 328 would produce at maturity the same total amount of interest as 329 would result from the application of the two or more rates 330 otherwise permitted, based upon the assumption that all payments 331 are made as agreed. 332 (h) The program licensee shall reduce the interest rates 333 specified in paragraph (f) on each subsequent program loan to 334 the same borrower by a minimum of 1 percent, up to a maximum of 335 6 percent, if all of the following conditions are met: 336 1. The subsequent program loan is originated within 180 337 days after the prior program loan is fully repaid. 338 2. The borrower was never more than 15 days delinquent on 339 the prior program loan. 340 3. The prior program loan was outstanding for at least one 341 half of its original term before its repayment. 342 (i) The program licensee may not induce or permit any 343 person to become obligated to the program licensee, directly or 344 contingently, or both, under more than one program loan at the 345 same time with the program licensee. 346 (j) The program licensee may not refinance a program loan 347 unless all of the following conditions are met at the time the 348 borrower submits an application to refinance: 349 1. The principal amount payable may not include more than 350 60 days’ unpaid interest accrued on the previous program loan 351 pursuant to s. 516.031(5). 352 2. For a program loan with an original term up to and 353 including 25 months, the borrower has repaid at least 60 percent 354 of the outstanding principal remaining on his or her existing 355 program loan. 356 3. For a program loan with an original term of more than 25 357 months, but not more than 60 months, the borrower has made 358 current payments for at least 9 months on his or her existing 359 program loan. 360 4. The borrower is current on payments for his or her 361 existing program loan. 362 5. The program licensee must underwrite the new program 363 loan in accordance with subsection (7). 364 (k) In lieu of the provisions of s. 687.08, the program 365 licensee or, if applicable, its approved access partner shall 366 make available to the borrower by electronic or physical means a 367 plain and complete receipt of payment at the time that the 368 borrower makes a loan payment. For audit purposes, the program 369 licensee must maintain an electronic record for each receipt 370 made available to a borrower. The electronic record must include 371 a copy of the receipt and the date and time that the receipt was 372 generated. Each receipt made available to the borrower must show 373 all of the following: 374 1. The name of the borrower. 375 2. The name of the access partner, if applicable. 376 3. The total payment amount received. 377 4. The date of payment. 378 5. The program loan balance before and after application of 379 the payment. 380 6. The amount of the payment which was applied to the 381 principal, interest, and fees. 382 7. The type of payment made by the borrower. 383 8. The following statement, prominently displayed in a type 384 size equal to or larger than the type size used to display the 385 other items on the receipt: “If you have any questions about 386 your loan now or in the future, you should direct those 387 questions to ...(name of program licensee)... by ...(at least 388 two different ways in which a borrower may contact the program 389 licensee)....” 390 (l) A program licensee may make program loans only to 391 residents of Broward, Miami-Dade, and Palm Beach Counties. 392 (m) At least 85 percent of program loans annually issued by 393 a program licensee must be provided to borrowers whose gross 394 monthly income is less than $6,250. 395 (2) WRITTEN DISCLOSURES AND STATEMENTS.— 396 (a) Notwithstanding s. 516.15(1), the loan contract and all 397 written disclosures and statements may be provided by a program 398 licensee to a borrower in English or in the language in which 399 the loan is negotiated. 400 (b) The program licensee shall provide to a borrower all 401 the statements required of licensees under s. 516.15. 402 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program 403 licensee may: 404 (a) Contract for and receive an origination fee from a 405 borrower on a program loan. The program licensee may either 406 deduct the origination fee from the principal amount of the loan 407 disbursed to the borrower or capitalize the origination fee into 408 the principal balance of the loan. The origination fee is fully 409 earned and nonrefundable immediately upon the making of the 410 program loan and may not exceed the lesser of 6 percent of the 411 principal amount of the program loan made to the borrower, 412 exclusive of the origination fee, or $90. 413 (b) Not charge a borrower an origination fee more than 414 twice in any 12-month period. 415 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A 416 program licensee may: 417 (a) Notwithstanding s. 516.031, require payment from a 418 borrower of no more than $20 for fees incurred by the program 419 licensee from a dishonored payment due to insufficient funds of 420 the borrower. 421 (b) Notwithstanding s. 516.031(3)(a)9., contract for and 422 receive a delinquency charge for each payment in default for at 423 least 7 days if the charge is agreed upon, in writing, between 424 the program licensee and the borrower before it is imposed. 425 Delinquency charges may be imposed as follows: 426 1. For payments due monthly, the delinquency charge for a 427 payment in default may not exceed $15. 428 2. For payments due semimonthly, the delinquency charge for 429 a payment in default may not exceed $7.50. 430 3. For payments due every 2 weeks, the delinquency charge 431 for a payment in default may not exceed $7.50 if two payments 432 are due within the same calendar month, and may not exceed $5 if 433 three payments are due within the same calendar month. 434 435 The program licensee, or any wholly owned subsidiary of the 436 program licensee, may not sell or assign an unpaid debt to an 437 independent third party for collection purposes unless the debt 438 has been delinquent for at least 30 days. 439 (5) CREDIT EDUCATION.—Before disbursement of program loan 440 proceeds to the borrower, the program licensee must: 441 (a) Direct the borrower to the consumer credit counseling 442 services offered by an independent third party; or 443 (b) Provide a credit education program or seminar to the 444 borrower. The borrower is not required to participate in the 445 education program or seminar. A credit education program or 446 seminar offered pursuant to this paragraph must be provided at 447 no cost to the borrower. 448 (6) CREDIT REPORTING.— 449 (a) The program licensee shall report each borrower’s 450 payment performance to at least two consumer reporting agencies. 451 (b) The office may not approve an applicant for the program 452 license before the applicant has been accepted as a data 453 furnisher by a consumer reporting agency. 454 (c) The program licensee shall provide each borrower with 455 the names of the consumer reporting agencies to which it will 456 report the borrower’s payment history. 457 (7) PROGRAM LOAN UNDERWRITING.— 458 (a) The program licensee must underwrite each program loan 459 to determine a borrower’s ability and willingness to repay the 460 program loan pursuant to the program loan terms. The program 461 licensee may not make a program loan if it determines that the 462 borrower’s total monthly debt service payments at the time of 463 origination, including the program loan for which the borrower 464 is being considered and all outstanding forms of credit that can 465 be independently verified by the program licensee, exceed 50 466 percent of the borrower’s gross monthly income for a loan of not 467 more than $3,000, or exceed 36 percent of the borrower’s gross 468 monthly income for a loan of more than $3,000. 469 (b)1. The program licensee must seek information and 470 documentation pertaining to all of a borrower’s outstanding debt 471 obligations during the loan application and underwriting 472 process, including loans that are self-reported by the borrower 473 but not available through independent verification. The program 474 licensee must verify such information using a credit report from 475 at least one consumer reporting agency or through other 476 available electronic debt verification services that provide 477 reliable evidence of a borrower’s outstanding debt obligations. 478 2. The program licensee is not required to consider loans 479 made to a borrower by friends or family in determining the 480 borrower’s debt-to-income ratio. 481 (c) The program licensee must verify the borrower’s income 482 to determine the debt-to-income ratio using information from: 483 1. Electronic means or services that provide reliable 484 evidence of the borrower’s actual income; or 485 2. The Internal Revenue Service Form W-2, tax returns, 486 payroll receipts, bank statements, or other third-party 487 documents that provide reasonably reliable evidence of the 488 borrower’s actual income. 489 (8) WAIVERS.— 490 (a) A program licensee may not require, as a condition of 491 providing the program loan, that the borrower: 492 1. Waive any right, penalty, remedy, forum, or procedure 493 provided for in any law applicable to the program loan, 494 including the right to file and pursue a civil action or file a 495 complaint with or otherwise communicate with the office, a 496 court, or any other governmental entity. 497 2. Agree to the application of laws other than those of 498 this state. 499 3. Agree to resolve disputes in a jurisdiction outside of 500 this state. 501 (b) A waiver that is required as a condition of doing 502 business with the program licensee is presumed involuntary, 503 unconscionable, against public policy, and unenforceable. 504 (c) A program licensee may not refuse to do business with 505 or discriminate against a borrower or an applicant on the basis 506 of the borrower’s or applicant’s refusal to waive any right, 507 penalty, remedy, forum, or procedure, including the right to 508 file and pursue a civil action or complaint with, or otherwise 509 communicate with, the office, a court, or any other governmental 510 entity. The exercise of a person’s right to refuse to waive any 511 right, penalty, remedy, forum, or procedure, including a 512 rejection of a contract requiring a waiver, does not affect any 513 otherwise legal terms of a contract or an agreement. 514 (d) This subsection does not apply to any agreement to 515 waive any right, penalty, remedy, forum, or procedure, including 516 any agreement to arbitrate a claim or dispute after a claim or 517 dispute has arisen. This subsection does not affect the 518 enforceability or validity of any other provision of the 519 contract. 520 (9) REGISTRY OF ACCESS PARTNERS.—A program licensee shall 521 maintain a registry of all access partners that provide services 522 to the program licensee. The program licensee shall provide a 523 copy of the registry to the office at the time the program 524 licensee files its report pursuant to s. 516.46(1). The office 525 may not publish a registry in its report under s. 516.46(2). 526 Section 5. Section 516.44, Florida Statutes, is created to 527 read: 528 516.44 Access partners.— 529 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a 530 program licensee and an access partner must be specified in a 531 written access partner agreement between the parties. The 532 agreement must contain the following provisions: 533 (a) The access partner agrees to comply with this section 534 and all rules adopted under this section regarding the 535 activities of access partners. 536 (b) The office has access to the access partner’s books and 537 records pertaining to the access partner’s operations under the 538 agreement with the program licensee in accordance with s. 539 516.45(3) and may examine the access partner pursuant to s. 540 516.45. 541 (2) AUTHORIZED SERVICES.—A program licensee may use the 542 services of one or more access partners as provided in this 543 section. An access partner may perform one or more of the 544 following services from its physical business location for the 545 program licensee: 546 (a) Distributing, circulating, using, or publishing printed 547 brochures, flyers, fact sheets, or other written materials 548 relating to program loans that the program licensee may make or 549 negotiate. The written materials must be reviewed and approved 550 in writing by the program licensee before being distributed, 551 circulated, used, or published. 552 (b) Providing written factual information about program 553 loan terms, conditions, or qualification requirements to a 554 prospective borrower which has been prepared by the program 555 licensee or reviewed and approved in writing by the program 556 licensee. An access partner may discuss the information with a 557 prospective borrower in general terms. 558 (c) Notifying a prospective borrower of the information 559 needed in order to complete a program loan application. 560 (d) Entering information provided by the prospective 561 borrower on a preprinted or an electronic application form or in 562 a preformatted computer database. 563 (e) Assembling credit applications and other materials 564 obtained in the course of a credit application transaction for 565 submission to the program licensee. 566 (f) Contacting the program licensee to determine the status 567 of a program loan application. 568 (g) Communicating a response that is returned by the 569 program licensee’s automated underwriting system to a borrower 570 or a prospective borrower. 571 (h) Obtaining a borrower’s signature on documents prepared 572 by the program licensee and delivering final copies of the 573 documents to the borrower. 574 (i) Disbursing program loan proceeds to a borrower if this 575 method of disbursement is acceptable to the borrower, subject to 576 the requirements of subsection (3). A loan disbursement made by 577 an access partner under this paragraph is deemed to be made by 578 the program licensee on the date that the funds are disbursed or 579 otherwise made available by the access partner to the borrower. 580 (j) Receiving a program loan payment from the borrower if 581 this method of payment is acceptable to the borrower, subject to 582 the requirements of subsection (3). 583 (k) Operating an electronic access point through which a 584 prospective borrower may directly access the website of the 585 program licensee to apply for a program loan. 586 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.— 587 (a) A loan payment made by a borrower to an access partner 588 under paragraph (2)(j) must be applied to the borrower’s program 589 loan and deemed received by the program licensee as of the date 590 on which the payment is received by the access partner. 591 (b) An access partner that receives a loan payment from a 592 borrower must deliver or cause to be delivered to the borrower a 593 plain and complete receipt showing all of the information 594 specified in s. 516.43(1)(k) at the time that the borrower makes 595 the payment. 596 (c) A borrower who submits a loan payment to an access 597 partner under this subsection is not liable for a failure or 598 delay by the access partner in transmitting the payment to the 599 program licensee. 600 (d) An access partner that disburses or receives loan 601 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must 602 maintain records of all disbursements made and loan payments 603 received for at least 2 years. 604 (4) PROHIBITED ACTIVITIES.—An access partner may not: 605 (a) Provide counseling or advice to a borrower or 606 prospective borrower with respect to any loan term. 607 (b) Provide loan-related marketing material that has not 608 previously been approved by the program licensee to a borrower 609 or a prospective borrower. 610 (c) Negotiate a loan term between a program licensee and a 611 prospective borrower. 612 (d) Offer information pertaining to a single prospective 613 borrower to more than one program licensee. However, if a 614 program licensee has declined to offer a program loan to a 615 prospective borrower and has so notified the prospective 616 borrower in writing, the access partner may then offer 617 information pertaining to that borrower to another program 618 licensee with whom it has an access partner agreement. 619 (e) Except for the purpose of assisting a borrower in 620 obtaining a refinance program loan, offer information pertaining 621 to a prospective borrower to any program licensee if the 622 prospective borrower has an outstanding program loan. 623 (f) Charge a borrower any fee for a program loan. 624 (g) Perform any service for a program licensee at a 625 pawnshop as defined in s. 539.001(2). 626 (h) Perform any service for a program licensee at a pari 627 mutuel facility as defined in s. 550.002, or at any facility 628 where covered games, as authorized under s. 285.710, are 629 conducted. 630 (5) DISCLOSURE STATEMENTS.— 631 (a) At the time that the access partner receives or 632 processes an application for a program loan, the access partner 633 shall provide the following statement to the applicant on behalf 634 of the program licensee, in at least 10-point type, and shall 635 request that the applicant acknowledge receipt of the statement 636 in writing: 637 638 Your loan application has been referred to us by 639 ...(name of access partner).... We may pay a fee to 640 ...(name of access partner)... for the successful 641 referral of your loan application. If you are approved 642 for the loan, ...(name of program licensee)... will 643 become your lender. If you have any questions about 644 your loan, now or in the future, you should direct 645 those questions to ...(name of program licensee)... by 646 ...(insert at least two different ways in which a 647 borrower may contact the program licensee).... If you 648 wish to report a complaint about ...(name of access 649 partner)... or ...(name of program licensee)... 650 regarding this loan transaction, you may contact the 651 Division of Consumer Finance of the Office of 652 Financial Regulation at (850) 487-9687 or 653 http://www.flofr.com. 654 655 (b) If the loan applicant has questions about the program 656 loan which the access partner is not permitted to answer, the 657 access partner must make a good faith effort to assist the 658 applicant in making direct contact with the program licensee 659 before the program loan is consummated. 660 (6) COMPENSATION.— 661 (a) The program licensee may compensate an access partner 662 in accordance with a written agreement and a compensation 663 schedule that is agreed to by the program licensee and the 664 access partner, subject to the requirements in paragraph (b). 665 (b) The compensation of an access partner by a program 666 licensee is subject to the following requirements: 667 1. Compensation may not be paid to an access partner in 668 connection with a loan application unless the program loan is 669 consummated. 670 2. The access partner’s location for services and other 671 information required in subsection (7) must be reported to the 672 office. 673 3. Compensation paid by the program licensee to the access 674 partner may not exceed $65 per program loan, on average, plus $2 675 per payment received by the access partner on behalf of the 676 program licensee for the duration of the program loan, and may 677 not be charged directly or indirectly to the borrower. 678 (7) NOTICE TO OFFICE.—A program licensee that uses the 679 service of an access partner must notify the office, in a form 680 and manner prescribed by commission rule, within 15 days after 681 entering into a contract with an access partner regarding all of 682 the following: 683 (a) The name, business address, and licensing details of 684 the access partner and all locations at which the access partner 685 will perform services under this section. 686 (b) The name and contact information for an employee of the 687 access partner who is knowledgeable about, and has the authority 688 to execute, the access partner agreement. 689 (c) The name and contact information of one or more 690 employees of the access partner who are responsible for that 691 access partner’s referring activities on behalf of the program 692 licensee. 693 (d) A statement by the program licensee that it has 694 conducted due diligence with respect to the access partner and 695 has confirmed that none of the following applies: 696 1. The filing of a petition under the United States 697 Bankruptcy Code for bankruptcy or reorganization by the access 698 partner. 699 2. The commencement of an administrative or a judicial 700 license suspension or revocation proceeding, or the denial of a 701 license request or renewal, by any state, the District of 702 Columbia, any United States territory, or any foreign country in 703 which the access partner operates, plans to operate, or is 704 licensed to operate. 705 3. A felony indictment involving the access partner or an 706 affiliated party. 707 4. The felony conviction, guilty plea, or plea of nolo 708 contendere, regardless of adjudication, of the access partner or 709 an affiliated party. 710 5. Any suspected criminal act perpetrated in this state 711 relating to activities regulated under this chapter by the 712 access partner. 713 6. Notification by a law enforcement or prosecutorial 714 agency that the access partner is under criminal investigation, 715 including, but not limited to, subpoenas to produce records or 716 testimony and warrants issued by a court of competent 717 jurisdiction which authorize the search and seizure of any 718 records relating to a business activity regulated under this 719 chapter. 720 721 As used in this paragraph, the term “affiliated party” means a 722 director, officer, control person, employee, or foreign 723 affiliate of an access partner; or a person who has a 724 controlling interest in an access partner. 725 (e) Any other information requested by the office, subject 726 to the limitations specified in s. 516.45(3). 727 (8) NOTICE OF CHANGES.—An access partner must provide the 728 program licensee with a written notice sent by registered mail 729 within 30 days after any change is made to the information 730 specified in paragraphs (7)(a)-(c) and within 30 days after the 731 occurrence or knowledge of any of the events specified in 732 paragraph (7)(d). 733 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program 734 licensee is responsible for any act of its access partner if the 735 act is a violation of this chapter. 736 (10) RULEMAKING.—The commission shall adopt rules to 737 implement this section. 738 Section 6. Section 516.45, Florida Statutes, is created to 739 read: 740 516.45 Examinations, investigations, and grounds for 741 disciplinary action.— 742 (1) Notwithstanding any other law, the office shall examine 743 each program licensee that is accepted into the program in 744 accordance with this chapter. 745 (2) Notwithstanding subsection (1), the office may waive 746 one or more branch office examinations if the office finds that 747 such examinations are not necessary for the protection of the 748 public due to the centralized operations of the program licensee 749 or other factors acceptable to the office. 750 (3) The scope of any investigation or examination of a 751 program licensee or access partner must be limited to those 752 books, accounts, records, documents, materials, and matters 753 reasonably necessary to determine compliance with this chapter. 754 (4) A program licensee who violates any applicable 755 provision of this chapter is subject to disciplinary action 756 pursuant to s. 516.07(2). Any such disciplinary action is 757 subject to s. 120.60. The program licensee is also subject to 758 disciplinary action for a violation of s. 516.44 committed by 759 any of its access partners. 760 (5) The office may take any of the following actions 761 against an access partner who violates s. 516.44: 762 (a) Bar the access partner from performing services under 763 this chapter. 764 (b) Bar the access partner from performing services at one 765 or more of its specific locations. 766 (c) Impose an administrative fine on the access partner of 767 up to $5,000 in a calendar year. 768 (6) The commission shall adopt rules to implement this 769 section. 770 Section 7. Section 516.46, Florida Statutes, is created to 771 read: 772 516.46 Annual reports by program licensees and the office.— 773 (1) By March 15, 2022, and each year thereafter, a program 774 licensee shall file a report with the office on a form and in a 775 manner prescribed by commission rule. The report must include 776 each of the items specified in subsection (2) for the preceding 777 year using aggregated or anonymized data without reference to 778 any borrower’s nonpublic personal information or any program 779 licensee’s or access partner’s proprietary or trade secret 780 information. 781 (2) By January 1, 2023, and each year thereafter, the 782 office shall post a report on its website summarizing the use of 783 the program based on the information contained in the reports 784 filed in the preceding year by program licensees under 785 subsection (1). The office’s report must publish the information 786 in the aggregate so as not to identify data by any specific 787 program licensee. The report must specify the period to which 788 the report corresponds and must include, but is not limited to, 789 the following for that period: 790 (a) The number of applicants approved for a program license 791 by the office. 792 (b) The number of program loan applications received by 793 program licensees, the number of program loans made under the 794 program, the total amount loaned, the distribution of loan 795 lengths upon origination, and the distribution of interest rates 796 and principal amounts upon origination among those program 797 loans. 798 (c) The number of borrowers who obtained more than one 799 program loan and the distribution of the number of program loans 800 per borrower. 801 (d) Of those borrowers who obtained more than one program 802 loan and had a credit score by the time of their subsequent 803 loan, the percentage of those borrowers whose credit scores 804 increased between successive loans, based on information from at 805 least one major credit bureau, and the average size of the 806 increase. In each case, the report must include the name of the 807 credit score, such as FICO or VantageScore, which the program 808 licensee is required to disclose. 809 (e) The income distribution of borrowers upon program loan 810 origination, including the number of borrowers who obtained at 811 least one program loan and who resided in a low-income or 812 moderate-income census tract at the time of their loan 813 applications. 814 (f) The number of borrowers who obtained program loans for 815 the following purposes, based on the borrowers’ responses at the 816 time of their loan applications indicating the primary purpose 817 for which the program loans were obtained: 818 1. To pay medical expenses. 819 2. To pay for vehicle repair or a vehicle purchase. 820 3. To pay bills. 821 4. To consolidate debt. 822 5. To build or repair credit history. 823 6. To finance a small business. 824 7. To pay other expenses. 825 (g) The number of borrowers who self-report that they had a 826 bank account at the time of their loan application and the 827 number of borrowers who self-report that they did not have a 828 bank account at the time of their loan application. 829 (h) For refinance program loans: 830 1. The number and percentage of borrowers who applied for a 831 refinance program loan. 832 2. Of those borrowers who applied for a refinance program 833 loan, the number and percentage of borrowers who obtained a 834 refinance program loan. 835 (i) The performance of program loans as reflected by all of 836 the following: 837 1. The number and percentage of borrowers who experienced 838 at least one delinquency lasting between 7 and 29 days and the 839 distribution of principal loan amounts corresponding to those 840 delinquencies. 841 2. The number and percentage of borrowers who experienced 842 at least one delinquency lasting between 30 and 59 days and the 843 distribution of principal loan amounts corresponding to those 844 delinquencies. 845 3. The number and percentage of borrowers who experienced 846 at least one delinquency lasting 60 days or more and the 847 distribution of principal loan amounts corresponding to those 848 delinquencies. 849 (3) The commission shall adopt rules to implement this 850 section. 851 Section 8. Sections 516.405-516.46, Florida Statutes, are 852 repealed on July 1, 2030, unless reenacted or superseded by 853 another law enacted by the Legislature before that date. 854 Section 9. For the 2020-2021 fiscal year, the sum of 855 $407,520 in nonrecurring funds from the Administrative Trust 856 Fund is appropriated to the Office of Financial Regulation for 857 the purpose of implementing this act. 858 Section 10. This act shall take effect January 1, 2021.