Florida Senate - 2026                              CS for SB 540
       
       
        
       By the Committee on Banking and Insurance; and Senator Martin
       
       
       
       
       
       597-01923-26                                           2026540c1
    1                        A bill to be entitled                      
    2         An act relating to the Office of Financial Regulation;
    3         creating s. 494.00123, F.S.; defining terms; requiring
    4         loan originators, mortgage brokers, and mortgage
    5         lenders to develop, implement, and maintain
    6         comprehensive written information security programs
    7         for the protection of information systems and
    8         nonpublic personal information; providing requirements
    9         for such programs; requiring loan originators,
   10         mortgage brokers, and mortgage lenders to establish
   11         written incident response plans for specified
   12         purposes; providing requirements for such plans;
   13         providing applicability; providing compliance
   14         requirements under specified circumstances; requiring
   15         loan originators, mortgage brokers, and mortgage
   16         lenders to maintain copies of information security
   17         programs for a specified timeframe and to make them
   18         available to the Office of Financial Regulation under
   19         certain circumstances; requiring loan originators,
   20         mortgage brokers, and mortgage lenders and certain
   21         entities to conduct investigations of cybersecurity
   22         events under certain circumstances; providing
   23         requirements for such investigations; providing
   24         requirements for records and documentation
   25         maintenance; providing requirements for notices of
   26         security breaches; providing construction; providing
   27         rulemaking authority; amending s. 494.00255, F.S.;
   28         providing additional acts that constitute a ground for
   29         specified disciplinary actions against loan
   30         originators and mortgage brokers; amending s. 517.021,
   31         F.S.; revising the definition of the term “investment
   32         adviser” and defining terms; amending s. 517.061,
   33         F.S.; defining terms; creating s. 520.135, F.S.;
   34         specifying that the rights and obligation of parties
   35         with respect to a surrendered or repossessed motor
   36         vehicle are exclusively governed by certain
   37         provisions; amending s. 560.114, F.S.; specifying the
   38         entities that are subject to certain disciplinary
   39         actions and penalties; revising the list of actions by
   40         money services businesses which constitute grounds for
   41         certain disciplinary actions and penalties; requiring,
   42         rather than authorizing, the office to suspend
   43         licenses of money services businesses under certain
   44         circumstances; creating s. 560.1311, F.S.; defining
   45         terms; requiring money services businesses to develop,
   46         implement, and maintain comprehensive written
   47         information security programs for the protection of
   48         information systems and nonpublic personal
   49         information; providing requirements for such programs;
   50         requiring money services businesses to establish
   51         written incident response plans for specified
   52         purposes; providing requirements for such plans;
   53         providing applicability; providing compliance
   54         requirements under specified circumstances; requiring
   55         money services businesses to maintain copies of
   56         information security programs for a specified
   57         timeframe and to make them available to the office
   58         under certain circumstances; requiring money services
   59         businesses and certain entities to conduct
   60         investigations of cybersecurity events under certain
   61         circumstances; providing requirements for such
   62         investigations; providing requirements for records and
   63         documentation maintenance; providing requirements for
   64         notices of security breaches; providing construction;
   65         providing rulemaking authority; creating s. 655.0171,
   66         F.S.; defining terms; requiring financial institutions
   67         to take measures to protect and secure certain data
   68         that contain personal information; providing
   69         requirements for notices of security breaches to the
   70         office, the Department of Legal Affairs, certain
   71         individuals, and certain credit reporting agencies;
   72         amending s. 655.045, F.S.; revising the timeline for
   73         the mailing of payment for salary and travel expenses
   74         of certain field staff; amending s. 657.005, F.S.;
   75         revising requirements for permission to organize
   76         credit unions; amending s. 657.024, F.S.; authorizing
   77         meetings of credit union members to be held virtually
   78         without an in-person quorum and authorizing virtual
   79         attendance to satisfy quorum requirements under
   80         certain circumstances; amending s. 657.042, F.S.;
   81         removing provisions that impose limitations on
   82         investments in real estate and equipment for credit
   83         unions; amending s. 658.21, F.S.; revising
   84         requirements and factors for approving applications
   85         for organizing banks and trust companies; amending s.
   86         658.33, F.S.; revising requirements for directors of
   87         certain banks and trust companies; amending s.
   88         662.141, F.S.; revising the timeline for the mailing
   89         of payment for the salary and travel expenses of
   90         certain field staff; amending s. 517.12, F.S.;
   91         conforming a cross-reference; providing an effective
   92         date.
   93          
   94  Be It Enacted by the Legislature of the State of Florida:
   95  
   96         Section 1. Section 494.00123, Florida Statutes, is created
   97  to read:
   98         494.00123Information security programs; cybersecurity
   99  event investigations.—
  100         (1)DEFINITIONS.—As used in this section, the term:
  101         (a)“Customer” means a person who seeks to obtain or who
  102  obtains or has obtained a financial product or service from a
  103  licensee.
  104         (b)“Customer information” means any record containing
  105  nonpublic personal information about a customer of a financial
  106  transaction, whether on paper, electronic, or in other forms,
  107  which is handled or maintained by or on behalf of the licensee
  108  or its affiliates.
  109         (c)“Cybersecurity event” means an event resulting in
  110  unauthorized access to, or disruption or misuse of, an
  111  information system, information stored on such information
  112  system, or customer information held in physical form.
  113         (d)“Financial product or service” means any product or
  114  service offered by a licensee under this chapter.
  115         (e)“Information security program” means the
  116  administrative, technical, or physical safeguards used to
  117  access, collect, distribute, process, protect, store, use,
  118  transmit, dispose of, or otherwise handle customer information.
  119         (f)“Information system” means a discrete set of electronic
  120  information resources organized for the collection, processing,
  121  maintenance, use, sharing, dissemination, or disposition of
  122  electronic information, as well as any specialized system such
  123  as an industrial process control system, telephone switching and
  124  private branch exchange system, or environmental control system,
  125  which contain customer information or which are connected to a
  126  system that contains customer information.
  127         (g)“Licensee” means a person licensed under this chapter.
  128         (h)1.“Nonpublic personal information” means:
  129         a.Personally identifiable financial information; and
  130         b.Any list, description, or other grouping of customers
  131  which is derived using any personally identifiable financial
  132  information that is not publicly available, such as account
  133  numbers, including any list of individuals’ names and street
  134  addresses which is derived, in whole or in part, using
  135  personally identifiable financial information that is not
  136  publicly available.
  137         2.The term does not include:
  138         a.Publicly available information, except as included on a
  139  list, description, or other grouping of customers described in
  140  sub-subparagraph 1.b.;
  141         b.Any list, description, or other grouping of consumers,
  142  or any publicly available information pertaining to such list,
  143  description, or other grouping of consumers, which is derived
  144  without using any personally identifiable financial information
  145  that is not publicly available; or
  146         c.Any list of individuals’ names and addresses which
  147  contains only publicly available information, is not derived, in
  148  whole or in part, using personally identifiable financial
  149  information that is not publicly available, and is not disclosed
  150  in a manner that indicates that any of the individuals on the
  151  list is a customer of a licensee.
  152         3.As used in this paragraph, the term:
  153         a.(I)“Personally identifiable financial information” means
  154  any information that:
  155         (A)A customer provides to a licensee to obtain a financial
  156  product or service, such as information that a customer provides
  157  to a licensee on an application to obtain a loan or other
  158  financial product or service;
  159         (B)A licensee receives about a consumer which is obtained
  160  during or as a result of any transaction involving a financial
  161  product or service between the licensee and the customer, such
  162  as information collected through an information-collecting
  163  device from a web server; or
  164         (C)A licensee otherwise obtains about a customer in
  165  connection with providing a financial product or service to the
  166  customer, such as the fact that an individual is or has been one
  167  of the licensee’s customers or has obtained a financial product
  168  or service from the licensee.
  169         (II)The term “personally identifiable financial
  170  information” does not include:
  171         (A)A list of names and addresses of customers of an entity
  172  that is not a financial institution; or
  173         (B)Information that does not identify a customer, such as
  174  blind data or aggregate information that does not contain
  175  personal identifiers such as account numbers, names, or
  176  addresses.
  177         b.(I)“Publicly available information” means any
  178  information that a licensee has a reasonable basis to believe is
  179  lawfully made available to the general public from:
  180         (A)Federal, state, or local government records, such as
  181  government real estate records or security interest filings;
  182         (B)Widely distributed media, such as information from a
  183  telephone records repository or directory, a television or radio
  184  program, a newspaper, a social media platform, or a website that
  185  is available to the general public on an unrestricted basis. A
  186  website is not restricted merely because an Internet service
  187  provider or a site operator requires a fee or a password, so
  188  long as access is available to the general public; or
  189         (C)Disclosures to the general public which are required to
  190  be made by federal, state, or local law.
  191         (II)As used in this sub-subparagraph, the term “reasonable
  192  basis to believe is lawfully made available to the general
  193  public” relating to any information means that the person has
  194  taken steps to determine:
  195         (A)That the information is of the type that is available
  196  to the general public, such as information included on the
  197  public record in the jurisdiction where the mortgage would be
  198  recorded; and
  199         (B)Whether an individual can direct that the information
  200  not be made available to the general public and, if so, the
  201  customer to whom the information relates has not done so, such
  202  as when a telephone number is listed in a telephone directory
  203  and the customer has informed the licensee that the telephone
  204  number is not unlisted.
  205         (i)“Third-party service provider” means a person, other
  206  than a licensee, which contracts with a licensee to maintain,
  207  process, or store nonpublic personal information, or is
  208  otherwise permitted access to nonpublic personal information
  209  through its provision of services to a licensee.
  210         (2)INFORMATION SECURITY PROGRAM.—
  211         (a)Each licensee shall develop, implement, and maintain a
  212  comprehensive written information security program that contains
  213  administrative, technical, and physical safeguards for the
  214  protection of the licensee’s information system and nonpublic
  215  personal information.
  216         (b)Each licensee shall ensure that the information
  217  security program meets all of the following criteria:
  218         1.Be commensurate with the following measures:
  219         a.Size and complexity of the licensee.
  220         b.Nature and scope of the licensee’s activities, including
  221  the licensee’s use of third-party service providers.
  222         c.Sensitivity of nonpublic personal information that is
  223  used by the licensee or that is in the licensee’s possession,
  224  custody, or control.
  225         2.Be designed to do all of the following:
  226         a.Protect the security and confidentiality of nonpublic
  227  personal information and the security of the licensee’s
  228  information system.
  229         b.Protect against threats or hazards to the security or
  230  integrity of nonpublic personal information and the licensee’s
  231  information system.
  232         c.Protect against unauthorized access to or the use of
  233  nonpublic personal information and minimize the likelihood of
  234  harm to any customer.
  235         3.Define and periodically reevaluate the retention
  236  schedule and the mechanism for the destruction of nonpublic
  237  personal information if retention is no longer necessary for the
  238  licensee’s business operations or is no longer required by
  239  applicable law.
  240         4.Regularly test and monitor systems and procedures for
  241  the detection of actual and attempted attacks on, or intrusions
  242  into, the licensee’s information system.
  243         5.Be monitored, evaluated, and adjusted, as necessary, to
  244  meet all of the following requirements:
  245         a.Determine whether the licensee’s information security
  246  program is consistent with relevant changes in technology.
  247         b.Confirm the licensee’s information security program
  248  accounts for the sensitivity of nonpublic personal information.
  249         c.Identify changes that may be necessary to the licensee’s
  250  information system.
  251         d.Eliminate any internal or external threats to nonpublic
  252  personal information.
  253         e.Amend the licensee’s information security program for
  254  any of the licensee’s changing business arrangements, including,
  255  but not limited to, mergers and acquisitions, alliances and
  256  joint ventures, and outsourcing arrangements.
  257         (c)1.As part of a licensee’s information security program,
  258  the licensee shall establish a written incident response plan
  259  designed to promptly respond to, and recover from, a
  260  cybersecurity event that compromises:
  261         a.The confidentiality, integrity, or availability of
  262  nonpublic personal information in the licensee’s possession;
  263         b.The licensee’s information system; or
  264         c.The continuing functionality of any aspect of the
  265  licensee’s operations.
  266         2.The written incident response plan must address all of
  267  the following:
  268         a.The licensee’s internal process for responding to a
  269  cybersecurity event.
  270         b.The goals of the licensee’s incident response plan.
  271         c.The assignment of clear roles, responsibilities, and
  272  levels of decisionmaking authority for the licensee’s personnel
  273  that participate in the incident response plan.
  274         d.External communications, internal communications, and
  275  information sharing related to a cybersecurity event.
  276         e.The identification of remediation requirements for
  277  weaknesses identified in information systems and associated
  278  controls.
  279         f.The documentation and reporting regarding cybersecurity
  280  events and related incident response activities.
  281         g.The evaluation and revision of the incident response
  282  plan, as appropriate, following a cybersecurity event.
  283         h.The process by which notice must be given as required
  284  under subsection (4) and s. 501.171(3) and (4).
  285         (d)1.This section does not apply to a licensee that has
  286  fewer than:
  287         a.Twenty individuals on its workforce, including employees
  288  and independent contractors; or
  289         b.Five hundred customers during a calendar year.
  290         2.A licensee that no longer qualifies for exemption under
  291  subparagraph 1. has 180 calendar days to comply with this
  292  section after the date of the disqualification.
  293         (e)Each licensee shall maintain a copy of the information
  294  security program for a minimum of 5 years and shall make it
  295  available to the office upon request or as part of an
  296  examination.
  297         (3)CYBERSECURITY EVENT INVESTIGATION.—
  298         (a)If a licensee discovers that a cybersecurity event has
  299  occurred or that a cybersecurity event may have occurred, the
  300  licensee, or an outside vendor or third-party service provider
  301  that the licensee has designated to act on its behalf, shall
  302  conduct a prompt investigation of the cybersecurity event.
  303         (b)During the investigation, the licensee, or the outside
  304  vendor or third-party service provider that the licensee has
  305  designated to act on its behalf, shall, at a minimum, determine
  306  as much of the following as possible:
  307         1.Confirm that a cybersecurity event has occurred.
  308         2.Identify the date that the cybersecurity event first
  309  occurred.
  310         3.Assess the nature and scope of the cybersecurity event.
  311         4.Identify all nonpublic personal information that may
  312  have been compromised by the cybersecurity event.
  313         5.Perform or oversee reasonable measures to restore the
  314  security of any compromised information system in order to
  315  prevent further unauthorized acquisition, release, or use of
  316  nonpublic personal information that is in the licensee’s,
  317  outside vendor’s, or third-party service provider’s possession,
  318  custody, or control.
  319         (c)If a licensee learns that a cybersecurity event has
  320  occurred, or may have occurred, in an information system
  321  maintained by a third-party service provider of the licensee,
  322  the licensee shall complete an investigation in compliance with
  323  this section or confirm and document that the third-party
  324  service provider has completed an investigation in compliance
  325  with this section.
  326         (d)A licensee shall maintain all records and documentation
  327  related to the licensee’s investigation of a cybersecurity event
  328  for a minimum of 5 years after the date of the cybersecurity
  329  event and shall produce the records and documentation to the
  330  office upon request.
  331         (4)NOTICE TO OFFICE OF SECURITY BREACH.—
  332         (a)Each licensee shall provide notice to the office of any
  333  breach of security affecting 500 or more individuals in this
  334  state at a time and in the manner prescribed by commission rule.
  335         (b)Each licensee shall, upon the office’s request, provide
  336  a quarterly update of a cybersecurity event investigation under
  337  subsection (3) until conclusion of the investigation.
  338         (5)CONSTRUCTION.—This section may not be construed to
  339  relieve a covered entity from complying with s. 501.171. To the
  340  extent a licensee is a covered entity, as defined in s.
  341  501.171(1), the licensee remains subject to s. 501.171.
  342         (6)RULES.—The commission may adopt rules to administer
  343  this section, including rules that allow a licensee that is in
  344  full compliance with the Federal Trade Commission’s Standards
  345  for Safeguarding Customer Information, 16 C.F.R. part 314, to be
  346  deemed in compliance with subsection (2).
  347         Section 2. Paragraph (z) is added to subsection (1) of
  348  section 494.00255, Florida Statutes, to read:
  349         494.00255 Administrative penalties and fines; license
  350  violations.—
  351         (1) Each of the following acts constitutes a ground for
  352  which the disciplinary actions specified in subsection (2) may
  353  be taken against a person licensed or required to be licensed
  354  under part II or part III of this chapter:
  355         (z)Failure to comply with the notification requirements in
  356  s. 501.171(3) and (4).
  357         Section 3. Present subsections (28) through (36) of section
  358  517.021, Florida Statutes, are redesignated as subsections (29)
  359  through (37), respectively, a new subsection (28) is added to
  360  that section, and subsection (20) of that section is amended, to
  361  read:
  362         517.021 Definitions.—When used in this chapter, unless the
  363  context otherwise indicates, the following terms have the
  364  following respective meanings:
  365         (20)(a) “Investment adviser” means a person, other than an
  366  associated person of an investment adviser or a federal covered
  367  adviser, that receives compensation, directly or indirectly, and
  368  engages for all or part of the person’s time, directly or
  369  indirectly, or through publications or writings, in the business
  370  of advising others as to the value of securities or as to the
  371  advisability of investments in, purchasing of, or selling of
  372  securities.
  373         (b) The term does not include any of the following:
  374         1. A dealer or an associated person of a dealer whose
  375  performance of services in paragraph (a) is solely incidental to
  376  the conduct of the dealer’s or associated person’s business as a
  377  dealer and who does not receive special compensation for those
  378  services.
  379         2. A licensed practicing attorney or certified public
  380  accountant whose performance of such services is solely
  381  incidental to the practice of the attorney’s or accountant’s
  382  profession.
  383         3. A bank authorized to do business in this state.
  384         4. A bank holding company as defined in the Bank Holding
  385  Company Act of 1956, as amended, authorized to do business in
  386  this state.
  387         5. A trust company having trust powers, as defined in s.
  388  658.12, which it is authorized to exercise in this state, which
  389  trust company renders or performs investment advisory services
  390  in a fiduciary capacity incidental to the exercise of its trust
  391  powers.
  392         6. A person that renders investment advice exclusively to
  393  insurance or investment companies.
  394         7. A person:
  395         a.Without a place of business in this state if the person
  396  has had that, during the preceding 12 months, has fewer than six
  397  clients who are residents of this state.
  398         b.With a place of business in this state if the person has
  399  had, during the preceding 12 months, fewer than six clients who
  400  are residents of this state and no clients who are not residents
  401  of this state.
  402  
  403  As used in this subparagraph, the term “client” has the same
  404  meaning as provided in Securities and Exchange Commission Rule
  405  222-2 275.222-2, 17 C.F.R. s. 275.222-2, as amended.
  406         8. A federal covered adviser.
  407         9. The United States, a state, or any political subdivision
  408  of a state, or any agency, authority, or instrumentality of any
  409  such entity; a business entity that is wholly owned directly or
  410  indirectly by such a governmental entity; or any officer, agent,
  411  or employee of any such governmental or business entity who is
  412  acting within the scope of his or her official duties.
  413         10.A family office as defined in Securities and Exchange
  414  Commission Rule 202(a)(11)(G)-1(b) under the Investment Advisers
  415  Act of 1940, 17 C.F.R. s. 275.202(a)(11)(G)-1(b), as amended. In
  416  determining whether a person meets the definition of a family
  417  office under this subparagraph, the terms “affiliated family
  418  office,” “control,” “executive officer,” “family client,”
  419  “family entity,” “family member,” “former family member,” “key
  420  employee,” and “spousal equivalent” have the same meaning as in
  421  Securities and Exchange Commission Rule 202(a)(11)(G)-1(d), 17
  422  C.F.R. s. 275.202(a)(11)(G)-1(d).
  423         (28)“Place of business” of an investment adviser means an
  424  office at which the investment adviser regularly provides
  425  investment advisory services to, solicits, meets with, or
  426  otherwise communicates with clients; and any other location that
  427  is held out to the general public as a location at which the
  428  investment adviser provides investment advisory services to,
  429  solicits, meets with, or otherwise communicates with clients.
  430         Section 4. Paragraph (i) of subsection (9) of section
  431  517.061, Florida Statutes, is amended to read:
  432         517.061 Exempt transactions.—Except as otherwise provided
  433  in subsection (11), the exemptions provided herein from the
  434  registration requirements of s. 517.07 are self-executing and do
  435  not require any filing with the office before being claimed. Any
  436  person who claims entitlement to an exemption under this section
  437  bears the burden of proving such entitlement in any proceeding
  438  brought under this chapter. The registration provisions of s.
  439  517.07 do not apply to any of the following transactions;
  440  however, such transactions are subject to s. 517.301:
  441         (9) The offer or sale of securities to:
  442         (i) A family office as defined in Securities and Exchange
  443  Commission Rule 202(a)(11)(G)-1(b) 202(a)(11)(G)-1 under the
  444  Investment Advisers Act of 1940, 17 C.F.R. s. 275.202(a)(11)(G)
  445  1(b) s. 275.202(a)(11)(G)-1, as amended, provided that:
  446         1. The family office has assets under management in excess
  447  of $5 million;
  448         2. The family office is not formed for the specific purpose
  449  of acquiring the securities offered; and
  450         3. The prospective investment of the family office is
  451  directed by a person who has knowledge and experience in
  452  financial and business matters that the family office is capable
  453  of evaluating the merits and risks of the prospective
  454  investment.
  455  
  456  In determining whether a person meets the definition of a family
  457  office under this paragraph, the terms “affiliated family
  458  office,” “control,” “executive officer,” “family client,”
  459  “family entity,” “family member,” “former family member,” “key
  460  employee,” and “spousal equivalent” have the same meaning as in
  461  Securities and Exchange Commission Rule 202(a)(11)(G)-1(d), 17
  462  C.F.R. s. 275.202(a)(11)(G)-1(d).
  463         Section 5. Section 520.135, Florida Statutes, is created to
  464  read:
  465         520.135Surrendered or repossessed vehicles.—The rights and
  466  obligations of parties with respect to a surrendered or
  467  repossessed motor vehicle are exclusively governed by part VI of
  468  chapter 679.
  469         Section 6. Subsections (1) and (2) of section 560.114,
  470  Florida Statutes, are amended to read:
  471         560.114 Disciplinary actions; penalties.—
  472         (1) The following actions by a money services business, an
  473  authorized vendor, or a affiliated party that was affiliated at
  474  the time of commission of the actions constitute grounds for the
  475  issuance of a cease and desist order; the issuance of a removal
  476  order; the denial, suspension, or revocation of a license; or
  477  taking any other action within the authority of the office
  478  pursuant to this chapter:
  479         (a) Failure to comply with any provision of this chapter or
  480  related rule or order, or any written agreement entered into
  481  with the office.
  482         (b) Fraud, misrepresentation, deceit, or gross negligence
  483  in any transaction by a money services business, regardless of
  484  reliance thereon by, or damage to, a customer.
  485         (c) Fraudulent misrepresentation, circumvention, or
  486  concealment of any matter that must be stated or furnished to a
  487  customer pursuant to this chapter, regardless of reliance
  488  thereon by, or damage to, such customer.
  489         (d) False, deceptive, or misleading advertising.
  490         (e) Failure to maintain, preserve, keep available for
  491  examination, and produce all books, accounts, files, or other
  492  documents required by this chapter or related rules or orders,
  493  by 31 C.F.R. ss. 1010.306, 1010.311, 1010.312, 1010.340,
  494  1010.410, 1010.415, 1022.210, 1022.320, 1022.380, and 1022.410,
  495  or by an agreement entered into with the office.
  496         (f) Refusing to allow the examination or inspection of
  497  books, accounts, files, or other documents by the office
  498  pursuant to this chapter, or to comply with a subpoena issued by
  499  the office.
  500         (g) Failure to pay a judgment recovered in any court by a
  501  claimant in an action arising out of a money transmission
  502  transaction within 30 days after the judgment becomes final.
  503         (h) Engaging in an act prohibited under s. 560.111 or s.
  504  560.1115.
  505         (i) Insolvency.
  506         (j) Failure by a money services business to remove an
  507  affiliated party after the office has issued and served upon the
  508  money services business a final order setting forth a finding
  509  that the affiliated party has violated a provision of this
  510  chapter.
  511         (k) Making a material misstatement, misrepresentation, or
  512  omission in an application for licensure, any amendment to such
  513  application, or application for the appointment of an authorized
  514  vendor.
  515         (l) Committing any act that results in a license or its
  516  equivalent, to practice any profession or occupation being
  517  denied, suspended, revoked, or otherwise acted against by a
  518  licensing authority in any jurisdiction.
  519         (m) Being the subject of final agency action or its
  520  equivalent, issued by an appropriate regulator, for engaging in
  521  unlicensed activity as a money services business or deferred
  522  presentment provider in any jurisdiction.
  523         (n) Committing any act resulting in a license or its
  524  equivalent to practice any profession or occupation being
  525  denied, suspended, revoked, or otherwise acted against by a
  526  licensing authority in any jurisdiction for a violation of 18
  527  U.S.C. s. 1956, 18 U.S.C. s. 1957, 18 U.S.C. s. 1960, 31 U.S.C.
  528  s. 5324, or any other law or rule of another state or of the
  529  United States relating to a money services business, deferred
  530  presentment provider, or usury that may cause the denial,
  531  suspension, or revocation of a money services business or
  532  deferred presentment provider license or its equivalent in such
  533  jurisdiction.
  534         (o) Having been convicted of, or entered a plea of guilty
  535  or nolo contendere to, any felony or crime punishable by
  536  imprisonment of 1 year or more under the law of any state or the
  537  United States which involves fraud, moral turpitude, or
  538  dishonest dealing, regardless of adjudication.
  539         (p) Having been convicted of, or entered a plea of guilty
  540  or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31
  541  U.S.C. s. 5318, s. 5322, or s. 5324, regardless of adjudication.
  542         (q) Having been convicted of, or entered a plea of guilty
  543  or nolo contendere to, misappropriation, conversion, or unlawful
  544  withholding of moneys belonging to others, regardless of
  545  adjudication.
  546         (r)Having been convicted of, or entered a plea of guilty
  547  or nolo contendere to, a violation of 31 C.F.R. chapter X, part
  548  1022, regardless of adjudication.
  549         (s)(r) Failure to inform the office in writing within 30
  550  days after having pled guilty or nolo contendere to, or being
  551  convicted of, any felony or crime punishable by imprisonment of
  552  1 year or more under the law of any state or the United States,
  553  or any crime involving fraud, moral turpitude, or dishonest
  554  dealing.
  555         (t)(s) Aiding, assisting, procuring, advising, or abetting
  556  any person in violating a provision of this chapter or any order
  557  or rule of the office or commission.
  558         (u)(t) Failure to pay any fee, charge, or cost imposed or
  559  assessed under this chapter.
  560         (v)(u) Failing to pay a fine assessed by the office within
  561  30 days after the due date as stated in a final order.
  562         (w)(v) Failure to pay any judgment entered by any court
  563  within 30 days after the judgment becomes final.
  564         (x)(w) Engaging or advertising engagement in the business
  565  of a money services business or deferred presentment provider
  566  without a license, unless exempted from licensure.
  567         (y)(x) Payment to the office for a license or other fee,
  568  charge, cost, or fine with a check or electronic transmission of
  569  funds that is dishonored by the applicant’s or licensee’s
  570  financial institution.
  571         (z)(y) Violations of 31 C.F.R. ss. 1010.306, 1010.311,
  572  1010.312, 1010.340, 1010.410, 1010.415, 1022.210, 1022.320,
  573  1022.380, and 1022.410, and United States Treasury Interpretive
  574  Release 2004-1.
  575         (aa)(z) Any practice or conduct that creates the likelihood
  576  of a material loss, insolvency, or dissipation of assets of a
  577  money services business or otherwise materially prejudices the
  578  interests of its customers.
  579         (bb)(aa) Failure of a check casher to maintain a federally
  580  insured depository account as required by s. 560.309.
  581         (cc)(bb) Failure of a check casher to deposit into its own
  582  federally insured depository account any payment instrument
  583  cashed as required by s. 560.309.
  584         (dd)(cc) Violating any provision of the Military Lending
  585  Act, 10 U.S.C. s. 987, or the regulations adopted under that act
  586  in 32 C.F.R. part 232, in connection with a deferred presentment
  587  transaction conducted under part IV of this chapter.
  588         (ee)Failure to comply with the notification requirements
  589  in s. 501.171(3) and (4).
  590         (2) Pursuant to s. 120.60(6), The office shall issue an
  591  emergency order suspending may summarily suspend the license of
  592  a money services business if the office finds that a licensee
  593  poses an immediate, serious danger to the public health, safety,
  594  and welfare. A proceeding in which the office seeks the issuance
  595  of a final order for the summary suspension of a licensee shall
  596  be conducted by the commissioner of the office, or his or her
  597  designee, who shall issue such order. The following acts are
  598  deemed by the Legislature to constitute an immediate and serious
  599  danger to the public health, safety, and welfare, and the office
  600  shall may immediately suspend the license of a money services
  601  business without making any further findings of immediate
  602  danger, necessity, and procedural fairness if:
  603         (a) The money services business fails to provide to the
  604  office, upon written request, any of the records required by s.
  605  560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule
  606  adopted under those sections. The suspension may be rescinded if
  607  the licensee submits the requested records to the office.
  608         (b) The money services business fails to maintain a
  609  federally insured depository account as required by s.
  610  560.208(4) or s. 560.309.
  611         (c) A natural person required to be listed on the license
  612  application for a money services business pursuant to s.
  613  560.141(1)(a)3. is criminally charged with, or arrested for, a
  614  crime described in paragraph (1)(o), paragraph (1)(p), or
  615  paragraph(1)(q).
  616         Section 7. Section 560.1311, Florida Statutes, is created
  617  to read:
  618         560.1311Information security programs; cybersecurity event
  619  investigations.—
  620         (1)DEFINITIONS.—As used in this section, the term:
  621         (a)“Customer” means a person who seeks to obtain or who
  622  obtains or has obtained a financial product or service from a
  623  licensee.
  624         (b)“Customer information” means any record containing
  625  nonpublic personal information about a customer of a financial
  626  transaction, whether on paper, electronic, or in other forms,
  627  which is handled or maintained by or on behalf of the licensee
  628  or its affiliates.
  629         (c)“Cybersecurity event” means an event resulting in
  630  unauthorized access to, or disruption or misuse of, an
  631  information system, information stored on such information
  632  system, or customer information held in physical form.
  633         (d)“Financial product or service” means any product or
  634  service offered by a licensee under this chapter.
  635         (e)“Information security program” means the
  636  administrative, technical, or physical safeguards used to
  637  access, collect, distribute, process, protect, store, use,
  638  transmit, dispose of, or otherwise handle customer information.
  639         (f)“Information system” means a discrete set of electronic
  640  information resources organized for the collection, processing,
  641  maintenance, use, sharing, dissemination, or disposition of
  642  electronic information, as well as any specialized system such
  643  as an industrial process control system, telephone switching and
  644  private branch exchange system, or environmental control system,
  645  which contain customer information or which are connected to a
  646  system that contains customer information.
  647         (g)1.“Nonpublic personal information” means:
  648         a.Personally identifiable financial information; and
  649         b.Any list, description, or other grouping of customers
  650  which is derived using any personally identifiable financial
  651  information that is not publicly available, such as account
  652  numbers, including any list of individuals’ names and street
  653  addresses which is derived, in whole or in part, using
  654  personally identifiable financial information that is not
  655  publicly available.
  656         2.The term does not include:
  657         a.Publicly available information, except as included on a
  658  list, description, or other grouping of customers described in
  659  sub-subparagraph 1.b.;
  660         b.Any list, description, or other grouping of consumers,
  661  or any publicly available information pertaining to such list,
  662  description, or other grouping of consumers, which is derived
  663  without using any personally identifiable financial information
  664  that is not publicly available; or
  665         c.Any list of individuals’ names and addresses which
  666  contains only publicly available information, is not derived, in
  667  whole or in part, using personally identifiable financial
  668  information that is not publicly available, and is not disclosed
  669  in a manner that indicates that any of the individuals on the
  670  list is a customer of a licensee.
  671         3.As used in this paragraph, the term:
  672         a.(I)“Personally identifiable financial information” means
  673  any information that:
  674         (A)A customer provides to a licensee to obtain a financial
  675  product or service, such as information that a customer provides
  676  to a licensee on an application to obtain a loan or other
  677  financial product or service;
  678         (B)A licensee receives about a consumer which is obtained
  679  during or as a result of any transaction involving a financial
  680  product or service between the licensee and the customer, such
  681  as information collected through an information-collecting
  682  device from a web server; or
  683         (C)A licensee otherwise obtains about a customer in
  684  connection with providing a financial product or service to the
  685  customer, such as the fact that an individual is or has been one
  686  of the licensee’s customers or has obtained a financial product
  687  or service from the licensee.
  688         (II)The term “personally identifiable financial
  689  information” does not include:
  690         (A)A list of names and addresses of customers of an entity
  691  that is not a financial institution; or
  692         (B)Information that does not identify a customer, such as
  693  blind data or aggregate information that does not contain
  694  personal identifiers such as account numbers, names, or
  695  addresses.
  696         b.(I)“Publicly available information” means any
  697  information that a licensee has a reasonable basis to believe is
  698  lawfully made available to the general public from:
  699         (A)Federal, state, or local government records, such as
  700  government real estate records or security interest filings;
  701         (B)Widely distributed media, such as information from a
  702  telephone records repository or directory, a television or radio
  703  program, a newspaper, a social media platform, or a website that
  704  is available to the general public on an unrestricted basis. A
  705  website is not restricted merely because an Internet service
  706  provider or a site operator requires a fee or a password, so
  707  long as access is available to the general public; or
  708         (C)Disclosures to the general public which are required to
  709  be made by federal, state, or local law.
  710         (II)As used in this sub-subparagraph, the term “reasonable
  711  basis to believe is lawfully made available to the general
  712  public” relating to any information means that the person has
  713  taken steps to determine:
  714         (A)That the information is of the type that is available
  715  to the general public, such as information included on the
  716  public record in the jurisdiction where the mortgage would be
  717  recorded; and
  718         (B)Whether an individual can direct that the information
  719  not be made available to the general public and, if so, the
  720  customer to whom the information relates has not done so, such
  721  as when a telephone number is listed in a telephone directory
  722  and the customer has informed the licensee that the telephone
  723  number is not unlisted.
  724         (h)“Third-party service provider” means a person, other
  725  than a licensee, which contracts with a licensee to maintain,
  726  process, or store nonpublic personal information, or is
  727  otherwise permitted access to nonpublic personal information
  728  through its provision of services to a licensee.
  729         (2)INFORMATION SECURITY PROGRAM.—
  730         (a)Each licensee shall develop, implement, and maintain a
  731  comprehensive written information security program that contains
  732  administrative, technical, and physical safeguards for the
  733  protection of the licensee’s information system and nonpublic
  734  personal information.
  735         (b)Each licensee shall ensure that the information
  736  security program meets all of the following criteria:
  737         1.Be commensurate with the following measures:
  738         a.Size and complexity of the licensee.
  739         b.Nature and scope of the licensee’s activities, including
  740  the licensee’s use of third-party service providers.
  741         c.Sensitivity of nonpublic personal information that is
  742  used by the licensee or that is in the licensee’s possession,
  743  custody, or control.
  744         2.Be designed to do all of the following:
  745         a.Protect the security and confidentiality of nonpublic
  746  personal information and the security of the licensee’s
  747  information system.
  748         b.Protect against threats or hazards to the security or
  749  integrity of nonpublic personal information and the licensee’s
  750  information system.
  751         c.Protect against unauthorized access to or the use of
  752  nonpublic personal information and minimize the likelihood of
  753  harm to any customer.
  754         3.Define and periodically reevaluate the retention
  755  schedule and the mechanism for the destruction of nonpublic
  756  personal information if retention is no longer necessary for the
  757  licensee’s business operations or is no longer required by
  758  applicable law.
  759         4.Regularly test and monitor systems and procedures for
  760  the detection of actual and attempted attacks on, or intrusions
  761  into, the licensee’s information system.
  762         5.Be monitored, evaluated, and adjusted, as necessary, to
  763  meet all of the following requirements:
  764         a.Determine whether the licensee’s information security
  765  program is consistent with relevant changes in technology.
  766         b.Confirm the licensee’s information security program
  767  accounts for the sensitivity of nonpublic personal information.
  768         c.Identify changes that may be necessary to the licensee’s
  769  information system.
  770         d.Eliminate any internal or external threats to nonpublic
  771  personal information.
  772         e.Amend the licensee’s information security program for
  773  any of the licensee’s changing business arrangements, including,
  774  but not limited to, mergers and acquisitions, alliances and
  775  joint ventures, and outsourcing arrangements.
  776         (c)1.As part of a licensee’s information security program,
  777  the licensee shall establish a written incident response plan
  778  designed to promptly respond to, and recover from, a
  779  cybersecurity event that compromises:
  780         a.The confidentiality, integrity, or availability of
  781  nonpublic personal information in the licensee’s possession;
  782         b.The licensee’s information system; or
  783         c.The continuing functionality of any aspect of the
  784  licensee’s operations.
  785         2.The written incident response plan must address all of
  786  the following:
  787         a.The licensee’s internal process for responding to a
  788  cybersecurity event.
  789         b.The goals of the licensee’s incident response plan.
  790         c.The assignment of clear roles, responsibilities, and
  791  levels of decisionmaking authority for the licensee’s personnel
  792  that participate in the incident response plan.
  793         d.External communications, internal communications, and
  794  information sharing related to a cybersecurity event.
  795         e.The identification of remediation requirements for
  796  weaknesses identified in information systems and associated
  797  controls.
  798         f.The documentation and reporting regarding cybersecurity
  799  events and related incident response activities.
  800         g.The evaluation and revision of the incident response
  801  plan, as appropriate, following a cybersecurity event.
  802         h.The process by which notice must be given as required
  803  under subsection (4) and s. 501.171(3) and (4).
  804         (d)1.This section does not apply to a licensee that has
  805  fewer than:
  806         a.Twenty individuals on its workforce, including employees
  807  and independent contractors; or
  808         b.Five hundred customers during a calendar year.
  809         2.A licensee that no longer qualifies for exemption under
  810  subparagraph 1. has 180 calendar days to comply with this
  811  section after the date of the disqualification.
  812         (e)Each licensee shall maintain a copy of the information
  813  security program for a minimum of 5 years and shall make it
  814  available to the office upon request or as part of an
  815  examination.
  816         (3)CYBERSECURITY EVENT INVESTIGATION.—
  817         (a)If a licensee discovers that a cybersecurity event has
  818  occurred or that a cybersecurity event may have occurred, the
  819  licensee, or an outside vendor or third-party service provider
  820  that the licensee has designated to act on its behalf, shall
  821  conduct a prompt investigation of the cybersecurity event.
  822         (b)During the investigation, the licensee, or the outside
  823  vendor or third-party service provider that the licensee has
  824  designated to act on its behalf, shall, at a minimum, determine
  825  as much of the following as possible:
  826         1.Confirm that a cybersecurity event has occurred.
  827         2.Identify the date that the cybersecurity event first
  828  occurred.
  829         3.Assess the nature and scope of the cybersecurity event.
  830         4.Identify all nonpublic personal information that may
  831  have been compromised by the cybersecurity event.
  832         5.Perform or oversee reasonable measures to restore the
  833  security of any compromised information system in order to
  834  prevent further unauthorized acquisition, release, or use of
  835  nonpublic personal information that is in the licensee’s,
  836  outside vendor’s, or third-party service provider’s possession,
  837  custody, or control.
  838         (c)If a licensee learns that a cybersecurity event has
  839  occurred, or may have occurred, in an information system
  840  maintained by a third-party service provider of the licensee,
  841  the licensee shall complete an investigation in compliance with
  842  this section or confirm and document that the third-party
  843  service provider has completed an investigation in compliance
  844  with this section.
  845         (d)A licensee shall maintain all records and documentation
  846  related to the licensee’s investigation of a cybersecurity event
  847  for a minimum of 5 years after the date of the cybersecurity
  848  event and shall produce the records and documentation to the
  849  office upon request.
  850         (4)NOTICE TO OFFICE OF SECURITY BREACH.—
  851         (a)Each licensee shall provide notice to the office of any
  852  breach of security affecting 500 or more individuals in this
  853  state at a time and in the manner prescribed by commission rule.
  854         (b)Each licensee shall, upon the office’s request, provide
  855  a quarterly update of a cybersecurity event investigation under
  856  subsection (3) until conclusion of the investigation.
  857         (5)CONSTRUCTION.—This section may not be construed to
  858  relieve a covered entity from complying with s. 501.171. To the
  859  extent a licensee is a covered entity, as defined in s.
  860  501.171(1), the licensee remains subject to s. 501.171.
  861         (6)RULES.—The commission may adopt rules to administer
  862  this section, including rules that allow a licensee that is in
  863  full compliance with the Federal Trade Commission’s Standards
  864  for Safeguarding Customer Information, 16 C.F.R. part 314, to be
  865  deemed in compliance with subsection (2).
  866         Section 8. Section 655.0171, Florida Statutes, is created
  867  to read:
  868         655.0171Requirements for customer data security and for
  869  notices of security breaches.—
  870         (1)DEFINITIONS.—As used in this section, the term:
  871         (a)“Breach of security” or “breach” means unauthorized
  872  access of data in electronic form containing personal
  873  information. Good faith access of personal information by an
  874  employee or agent of a financial institution does not constitute
  875  a breach of security, provided that the information is not used
  876  for a purpose unrelated to the business or subject to further
  877  unauthorized use. As used in this paragraph, the term “data in
  878  electronic form” means any data stored electronically or
  879  digitally on any computer system or other database and includes
  880  recordable tapes and other mass storage devices.
  881         (b)“Department” means the Department of Legal Affairs.
  882         (c)1.“Personal information” means:
  883         a.An individual’s first name, or first initial, and last
  884  name, in combination with any of the following data elements for
  885  that individual:
  886         (I)A social security number;
  887         (II)A driver license or identification card number,
  888  passport number, military identification number, or other
  889  similar number issued on a government document used to verify
  890  identity;
  891         (III)A financial account number or credit or debit card
  892  number, in combination with any required security code, access
  893  code, or password that is necessary to permit access to the
  894  individual’s financial account;
  895         (IV)The individual’s biometric data as defined in s.
  896  501.702; or
  897         (V)Any information regarding the individual’s geolocation;
  898  or
  899         b.A username or e-mail address, in combination with a
  900  password or security question and answer that would permit
  901  access to an online account.
  902         2.The term does not include information about an
  903  individual which has been made publicly available by a federal,
  904  state, or local governmental entity. The term also does not
  905  include information that is encrypted, secured, or modified by
  906  any other method or technology that removes elements that
  907  personally identify an individual or that otherwise renders the
  908  information unusable.
  909         (2)REQUIREMENTS FOR DATA SECURITY.—Each financial
  910  institution shall take reasonable measures to protect and secure
  911  data that are in electronic form and that contain personal
  912  information.
  913         (3)NOTICE TO OFFICE AND DEPARTMENT OF SECURITY BREACH.—
  914         (a)1.Each financial institution shall provide notice to
  915  the office of any breach of security affecting 500 or more
  916  individuals in this state. Such notice must be provided to the
  917  office as expeditiously as practicable, but no later than 30
  918  days after the determination of the breach or the determination
  919  of a reason to believe that a breach has occurred.
  920         2.The written notice to the office must include the items
  921  required under s. 501.171(3)(b).
  922         3.A financial institution must provide the following
  923  information to the office upon its request:
  924         a.A police report, incident report, or computer forensics
  925  report.
  926         b.A copy of the policies in place regarding breaches.
  927         c. Steps that have been taken to rectify the breach.
  928         4.A financial institution may provide the office with
  929  supplemental information regarding a breach at any time.
  930         (b)Each financial institution shall provide notice to the
  931  department of any breach of security affecting 500 or more
  932  individuals in this state. Such notice must be provided to the
  933  department in accordance with s. 501.171.
  934         (4)NOTICE TO INDIVIDUALS OF SECURITY BREACH.—Each
  935  financial institution shall give notice to each individual in
  936  this state whose personal information was, or the financial
  937  institution reasonably believes to have been, accessed as a
  938  result of the breach in accordance with s. 501.171(4). The
  939  notice must be provided no later than 30 days after the
  940  determination of the breach or the determination of a reason to
  941  believe that a breach has occurred. A financial institution may
  942  receive 15 additional days to provide notice to individuals of a
  943  security breach as required in this subsection if good cause for
  944  delay is provided in writing to the office within 30 days after
  945  determination of the breach or determination of the reason to
  946  believe that a breach has occurred.
  947         (5)NOTICE TO CREDIT REPORTING AGENCIES.—If a financial
  948  institution discovers circumstances requiring notice pursuant to
  949  this section of more than 1,000 individuals at a single time,
  950  the financial institution shall also notify, without
  951  unreasonable delay, all consumer reporting agencies that compile
  952  and maintain files on consumers on a nationwide basis, as
  953  defined in the Fair Credit Reporting Act, 15 U.S.C. s. 1681a(p),
  954  of the timing, distribution, and content of the notices.
  955         Section 9. Paragraph (d) of subsection (1) of section
  956  655.045, Florida Statutes, is amended to read:
  957         655.045 Examinations, reports, and internal audits;
  958  penalty.—
  959         (1) The office shall conduct an examination of the
  960  condition of each state financial institution at least every 18
  961  months. The office may conduct more frequent examinations based
  962  upon the risk profile of the financial institution, prior
  963  examination results, or significant changes in the institution
  964  or its operations. The office may use continuous, phase, or
  965  other flexible scheduling examination methods for very large or
  966  complex state financial institutions and financial institutions
  967  owned or controlled by a multi-financial institution holding
  968  company. The office shall consider examination guidelines from
  969  federal regulatory agencies in order to facilitate, coordinate,
  970  and standardize examination processes.
  971         (d) As used in this section, the term “costs” means the
  972  salary and travel expenses directly attributable to the field
  973  staff examining the state financial institution, subsidiary, or
  974  service corporation, and the travel expenses of any supervisory
  975  staff required as a result of examination findings. The mailing
  976  of any costs incurred under this subsection must be postmarked
  977  within 45 30 days after the date of receipt of a notice stating
  978  that such costs are due. The office may levy a late payment of
  979  up to $100 per day or part thereof that a payment is overdue,
  980  unless excused for good cause. However, for intentional late
  981  payment of costs, the office may levy an administrative fine of
  982  up to $1,000 per day for each day the payment is overdue.
  983         Section 10. Subsection (2) of section 657.005, Florida
  984  Statutes, is amended to read:
  985         657.005 Application for authority to organize a credit
  986  union; investigation.—
  987         (2) Any five or more individuals, a majority of whom are
  988  residents of this state and all of whom who represent a limited
  989  field of membership, may apply to the office for permission to
  990  organize a credit union. The fact that individuals within the
  991  proposed limited field of membership have credit union services
  992  available to them through another limited field of membership
  993  shall not preclude the granting of a certificate of
  994  authorization to engage in the business of a credit union.
  995         Section 11. Subsection (1) of section 657.024, Florida
  996  Statutes, is amended to read:
  997         657.024 Membership meetings.—
  998  (1) The members shall receive timely notice of the annual
  999  meeting and any special meetings of the members, which shall be
 1000  held at the time, place, and in the manner provided in the
 1001  bylaws. The annual meeting and any special meetings of the
 1002  members may be held virtually without an in-person quorum, and
 1003  virtual attendance may satisfy quorum requirements, subject to
 1004  the bylaws.
 1005         Section 12. Paragraph (b) of subsection (3) and present
 1006  subsection (5) of section 657.042, Florida Statutes, are amended
 1007  to read:
 1008         657.042 Investment powers and limitations.—A credit union
 1009  may invest its funds subject to the following definitions,
 1010  restrictions, and limitations:
 1011         (3) INVESTMENT SUBJECT TO LIMITATION OF TWO PERCENT OF
 1012  CAPITAL OF THE CREDIT UNION.—
 1013         (b) Commercial paper and bonds of any corporation within
 1014  the United States which have a fixed maturity, as provided in
 1015  subsection (6) (7), except that the total investment in all such
 1016  paper and bonds may not exceed 10 percent of the capital of the
 1017  credit union.
 1018         (5)INVESTMENTS IN REAL ESTATE AND EQUIPMENT FOR THE CREDIT
 1019  UNION.—
 1020         (a)Up to 5 percent of the capital of the credit union may
 1021  be invested in real estate and improvements thereon, furniture,
 1022  fixtures, and equipment utilized or to be utilized by the credit
 1023  union for the transaction of business.
 1024         (b)The limitations provided by this subsection may be
 1025  exceeded with the prior written approval of the office. The
 1026  office shall grant such approval if it is satisfied that:
 1027         1.The proposed investment is necessary.
 1028         2.The amount thereof is commensurate with the size and
 1029  needs of the credit union.
 1030         3.The investment will be beneficial to the members.
 1031         4.A reasonable plan is developed to reduce the investment
 1032  to statutory limits.
 1033         Section 13. Paragraphs (b) and (c) of subsection (4) of
 1034  section 658.21, Florida Statutes, are amended to read:
 1035         658.21 Approval of application; findings required.—The
 1036  office shall approve the application if it finds that:
 1037         (4)
 1038         (b) At least two of the proposed directors who are not also
 1039  proposed officers must have had within the 10 years before the
 1040  date of the application at least 1 year of direct experience as
 1041  an executive officer, regulator, or director of a financial
 1042  institution as specified in the application within the 5 years
 1043  before the date of the application. However, if the applicant
 1044  demonstrates that at least one of the proposed directors has
 1045  very substantial experience as an executive officer, director,
 1046  or regulator of a financial institution more than 5 years before
 1047  the date of the application, the office may modify the
 1048  requirement and allow the applicant to have only one director
 1049  who has direct financial institution experience within the last
 1050  5 years.
 1051         (c) The proposed president or chief executive officer must
 1052  have had at least 1 year of direct experience as an executive
 1053  officer, director, or regulator of a financial institution
 1054  within the last 10 5 years. In making a decision, the office
 1055  must also consider may waive this requirement after considering:
 1056         1. The adequacy of the overall experience and expertise of
 1057  the proposed president or chief executive officer;
 1058         2. The likelihood of successful operation of the proposed
 1059  state bank or trust company pursuant to subsection (1);
 1060         3. The adequacy of the proposed capitalization under
 1061  subsection (2);
 1062         4. The proposed capital structure under subsection (3);
 1063         5. The experience of the other proposed officers and
 1064  directors; and
 1065         6. Any other relevant data or information.
 1066         Section 14. Subsection (2) of section 658.33, Florida
 1067  Statutes, is amended to read:
 1068         658.33 Directors, number, qualifications; officers.—
 1069         (2) Not less than a majority of the directors must, during
 1070  their whole term of service, be citizens of the United States,
 1071  and at least a majority of the directors must have resided in
 1072  this state for at least 1 year preceding their election and must
 1073  be residents therein during their continuance in office. In the
 1074  case of a bank or trust company with total assets of less than
 1075  $150 million, at least one, and in the case of a bank or trust
 1076  company with total assets of $150 million or more, two of the
 1077  directors who are not also officers of the bank or trust company
 1078  must have had at least 1 year of direct experience as an
 1079  executive officer, regulator, or director of a financial
 1080  institution within the last 10 5 years.
 1081         Section 15. Subsection (4) of section 662.141, Florida
 1082  Statutes, is amended to read:
 1083         662.141 Examination, investigations, and fees.—The office
 1084  may conduct an examination or investigation of a licensed family
 1085  trust company at any time it deems necessary to determine
 1086  whether the licensed family trust company or licensed family
 1087  trust company-affiliated party thereof has violated or is about
 1088  to violate any provision of this chapter, any applicable
 1089  provision of the financial institutions codes, or any rule
 1090  adopted by the commission pursuant to this chapter or the codes.
 1091  The office may conduct an examination or investigation of a
 1092  family trust company or foreign licensed family trust company at
 1093  any time it deems necessary to determine whether the family
 1094  trust company or foreign licensed family trust company has
 1095  engaged in any act prohibited under s. 662.131 or s. 662.134
 1096  and, if a family trust company or a foreign licensed family
 1097  trust company has engaged in such act, to determine whether any
 1098  applicable provision of the financial institutions codes has
 1099  been violated.
 1100         (4) For each examination of the books and records of a
 1101  family trust company, licensed family trust company, or foreign
 1102  licensed family trust company as authorized under this chapter,
 1103  the trust company shall pay a fee for the costs of the
 1104  examination by the office. As used in this section, the term
 1105  “costs” means the salary and travel expenses of field staff
 1106  which are directly attributable to the examination of the trust
 1107  company and the travel expenses of any supervisory and support
 1108  staff required as a result of examination findings. The mailing
 1109  of payment for costs incurred must be postmarked within 45 30
 1110  days after the receipt of a notice stating that the costs are
 1111  due. The office may levy a late payment of up to $100 per day or
 1112  part thereof that a payment is overdue unless waived for good
 1113  cause. However, if the late payment of costs is intentional, the
 1114  office may levy an administrative fine of up to $1,000 per day
 1115  for each day the payment is overdue.
 1116         Section 16. Subsection (21) of section 517.12, Florida
 1117  Statutes, is amended to read:
 1118         517.12 Registration of dealers, associated persons,
 1119  intermediaries, and investment advisers.—
 1120         (21) The registration requirements of this section do not
 1121  apply to any general lines insurance agent or life insurance
 1122  agent licensed under chapter 626, with regard to the sale of a
 1123  security as defined in s. 517.021(34)(g) s. 517.021(33)(g), if
 1124  the individual is directly authorized by the issuer to offer or
 1125  sell the security on behalf of the issuer and the issuer is a
 1126  federally chartered savings bank subject to regulation by the
 1127  Federal Deposit Insurance Corporation. Actions under this
 1128  subsection constitute activity under the insurance agent’s
 1129  license for purposes of ss. 626.611 and 626.621.
 1130         Section 17. This act shall take effect July 1, 2026.