HB 389 2022
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to money services businesses; amending 2
s. 560.103, F.S.; revising and providing definitions; 3
amending s. 560.105, F.S.; authorizing the Financial 4
Services Commission to adopt rules establishing time 5
periods during which money services business are 6
barred from licensure; providing requirements for such 7
rules; providing that applicants are not eligible for 8
licensure until the expiration of the disqua lifying 9
period; providing applicability; amending s. 560.114, 10
F.S.; authorizing the Office of Financial Regulation 11
to bar certain persons that violate specified laws, 12
rules, orders, or written agreements from applying for 13
a license or acting as control per sons for money 14
services businesses; authorizing licenses to be 15
suspended under certain circumstances; providing 16
requirements for orders of license suspension; 17
specifying when criminal prosecutions are pending or 18
terminated; amending ss. 560.118, 560.123, a nd 19
560.126, F.S.; conforming provisions to changes made 20
by the act; repealing s. 560.127, F.S., relating to 21
control of a money services business; amending ss. 22
560.141 and 560.143, F.S.; conforming provisions to 23
changes made by the act; providing an effecti ve date. 24
25
HB 389 2022
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Be It Enacted by the Legislature of the State of Florida: 26
27
Section 1. Subsections (10) through (25), (34), and (35) 28
of section 560.103, Florida Statutes, are renumbered as 29
subsections (11) through (26), (33), and (34), respectively, 30
subsection (1) and present subsections (26) and (33) are 31
amended, and a new subsection (10) is added to that section, to 32
read: 33
560.103 Definitions. —As used in this chapter, the term: 34
(1) "Affiliated party" means a control director, officer, 35
responsible person, employee, or foreign affiliate of a money 36
services business, or a person who has a controlling interest in 37
a money services business as provided in s. 560.127 . 38
(10) "Control person" means an individual, partnership, 39
corporation, trust, or other organ ization that possesses the 40
power, directly or indirectly, to direct the management or 41
policies of a company, whether through ownership of securities, 42
by contract, or otherwise. The term includes a company's 43
executive officers, including the president, chie f executive 44
officer, chief financial officer, chief operations officer, 45
chief legal officer, compliance officer, director, and other 46
individuals having similar status or functions. The term also 47
includes: 48
(a) All shareholders that, directly or indirectly , own 25 49
percent or more, or that have the power to vote 25 percent or 50
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more, of a class of voting securities. 51
(b) For a partnership: 52
1. All general partners. 53
2. All limited or special partners that have contributed 54
25 percent or more, or that have th e right to receive, upon 55
dissolution, 25 percent or more, of the partnership's capital. 56
(c) For a trust, all trustees. 57
(d) For a limited liability company: 58
1. All managers. 59
2. All members that have contributed 25 percent or more, 60
or that have the right to receive, upon dissolution, 25 percent 61
or more, of the limited liability company's capital account. 62
(26) "Officer" means an individual, other than a director, 63
who participates in, or has authority to participate in, the 64
major policymaking functions of a money services business, 65
regardless of whether the individual has an official title or 66
receives a salary or other compensation. 67
(33) "Responsible person" means an individual who is 68
employed by or affiliated with a money services business a nd who 69
has principal active management authority over the business 70
decisions, actions, and activities of the money services 71
business in this state. 72
Section 2. Paragraph (c) is added to subsection (2) of 73
section 560.105, Florida Statutes, to read: 74
560.105 Supervisory powers; rulemaking. — 75
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(2) The commission may adopt rules pursuant to ss. 76
120.536(1) and 120.54 to administer this chapter. 77
(c) The commission may adopt rules establishing time 78
periods during which a money services business is barred fro m 79
licensure due to prior criminal convictions of, or guilty or 80
nolo contendere pleas by, an applicant's control persons, 81
regardless of adjudication. The rules must provide: 82
1. A disqualifying period of: 83
a. Fifteen years for a felony involving fraud, di shonesty, 84
breach of trust, money laundering, or any other act of moral 85
turpitude. 86
b. Seven years for any felony other than those specified 87
in sub-subparagraph a. 88
c. Five years for a misdemeanor involving fraud, 89
dishonesty, or any other act of moral tur pitude. 90
2. An additional waiting period due to dates of 91
imprisonment or community supervision, the commitment of 92
multiple crimes, and other factors reasonably related to the 93
applicant's criminal history. 94
3. Mitigating factors for crimes identified in s ub-95
subparagraphs 1.a., 1.b., and 1.c. Mitigating factors include 96
any of the following: 97
a. A probation officer or prosecuting attorney in the most 98
recent crime states in a signed writing that the probation 99
officer or prosecuting attorney believes that the applicant 100
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would pose no significant threat to public welfare if licensed 101
as a money services business. 102
b. Restitution or settlement has been made for all crimes 103
in which restitution or settlement was ordered by the court, and 104
proof of such restitution o r settlement is shown in official 105
court documents or as verified in a signed writing by the 106
prosecuting attorney or probation officer. 107
c. The applicant was under age 21 when the crime was 108
committed, and there is only one crime in the applicant's 109
criminal history record. 110
d. The applicant furnishes proof that the applicant was at 111
the time of the crime addicted to drugs or suffering active 112
alcoholism. Proof must be accompanied by a written letter from a 113
properly licensed physician, psychologist, or therapi st stating 114
that the he or she has examined or treated the applicant and 115
that, in his or her professional opinion, the addiction or 116
alcoholism is currently in remission and has been in remission 117
for the previous 12 months. 118
119
An applicant is not eligible for licensure until the expiration 120
of the disqualifying period set by rule. Section 112.011 does 121
not apply to eligibility for licensure under this part. 122
Section 3. Subsections (9) and (10) are added to section 123
560.114, Florida Statutes, to read: 124
560.114 Disciplinary actions; penalties. — 125
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(9) The office may bar, permanently or for a specific 126
time, a person found to have violated any provision of this 127
chapter, any related rule or order adopted by the commission or 128
office, or any written agreement entered i nto with the office, 129
from submitting an application for a license with the office or 130
from acting as a control person of a money services business. 131
(10) A money services business license under s. 560.141 132
may be suspended if a control person of the money s ervices 133
business is arrested for any conduct that would authorize 134
revocation under subsection (1). 135
(a) An order of suspension under this subsection: 136
1. Takes effect only after a hearing, unless a hearing is 137
not requested by the licensee or unless the s uspension is made 138
in accordance with s. 120.60(6). 139
2. Must contain a finding that evidence of a prima facie 140
case supports the charge made in the criminal prosecution. 141
3. Must operate for no longer than 10 calendar days beyond 142
receipt of notice to the o ffice of the termination of the 143
pending criminal prosecution. 144
(b) For purposes of this subsection, a criminal 145
prosecution is pending at any time after criminal charges are 146
filed and is terminated at any time after conviction, acquittal, 147
or dismissal. 148
Section 4. Subsection (2) of section 560.118, Florida 149
Statutes, is amended to read: 150
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560.118 Reports.— 151
(2) Each licensee must submit quarterly reports to the 152
office in a format and include information as specified by rule. 153
The rule may require the report to contain a declaration by a 154
control person an officer, or any other responsible person 155
authorized to make such declaration , that the report is true and 156
correct to the best of her or his knowledge and belief. 157
Section 5. Paragraph (d) of subsection (3) of section 158
560.123, Florida Statutes, is amended to read: 159
560.123 Florida Control of Money Launderin g in Money 160
Services Business Act. — 161
(3) A money services business shall keep a record of each 162
financial transaction occurring in this state which it knows to 163
involve currency or other payment instrument, as prescribed by 164
the commission, having a value gre ater than $10,000; to involve 165
the proceeds of specified unlawful activity; or to be designed 166
to evade the reporting requirements of this section or chapter 167
896. The money services business must maintain appropriate 168
procedures to ensure compliance with this section and chapter 169
896. 170
(d) A money services business, or control person officer, 171
employee, or agent thereof, that files a report in good faith 172
pursuant to this section is not liable to any person for loss or 173
damage caused in whole or in part by the making, filing, or 174
governmental use of the report, or any information contained 175
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therein. 176
Section 6. Subsection (3) of section 560.126, Florida 177
Statutes, is amended to read: 178
560.126 Required notice by licensee. — 179
(3) Each licensee must report any change in the control 180
persons partners, officers, members, joint venturers, directors, 181
controlling shareholders, or responsible persons of the licensee 182
or changes in the form of business organization by written 183
amendment in such form and at such time as specified by rule. 184
(a) If any person, directly or indirectly or acting by or 185
through one or more persons, proposes to purchase or acquire a 186
controlling interest in a licensee, such person or group must 187
submit an application for licensure as a money services business 188
or deferred presentment provider before such purchase or 189
acquisition at such t ime and in such form as prescribed by rule. 190
As used in this subsection, the term "controlling interest" 191
means the same as described in s. 560.127. 192
(b) The addition of a control partner, officer, member, 193
joint venturer, director, controlling shareholder, or 194
responsible person of the applicant who does not have a 195
controlling interest and who has not previously complied with 196
the applicable provisions of ss. 560.1401 and 560.141 is subject 197
to such provisions. If the office determines that the licensee 198
does not continue to meet the licensure requirements, the office 199
may bring an administrative action in accordance with s. 560.114 200
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to enforce the provisions of this chapter. 201
(c) The commission shall adopt rules providing for the 202
waiver of the license application required by this subsection if 203
the person or group of persons proposing to purchase or acquire 204
a controlling interest in a licensee has previously complied 205
with the applicable provisions of ss. 560.1401 and 560.141 under 206
the same legal entity or is curren tly licensed under this 207
chapter. 208
Section 7. Section 560.127, Florida Statutes, is repealed. 209
Section 8. Paragraph (a) of subsection (1) of section 210
560.141, Florida Statutes, is amended to read: 211
560.141 License application. — 212
(1) To apply for a li cense as a money services business 213
under this chapter, the applicant must submit: 214
(a) An application to the office on forms prescribed by 215
rule which includes the following information: 216
1. The legal name and address of the applicant, including 217
any fictitious or trade names used by the applicant in the 218
conduct of its business. 219
2. The date of the applicant's formation and the state in 220
which the applicant was formed, if applicable. 221
3. The name, social security number, alien identification 222
or taxpayer identification number, business and residence 223
addresses, and employment history for the past 5 years for each 224
control officer, director, responsible person, the compliance 225
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officer, each controlling shareholder, and any other person who 226
has a controlling inte rest in the money services business as 227
provided in s. 560.127 . 228
4. A description of the organizational structure of the 229
applicant, including the identity of any parent or subsidiary of 230
the applicant, and the disclosure of whether any parent or 231
subsidiary is publicly traded. 232
5. The applicant's history of operations in other states 233
if applicable and a description of the money services business 234
or deferred presentment provider activities proposed to be 235
conducted by the applicant in this state. 236
6. If the applicant or its parent is a publicly traded 237
company, copies of all filings made by the applicant with the 238
United States Securities and Exchange Commission, or with a 239
similar regulator in a country other than the United States, 240
within the preceding year. 241
7. The location at which the applicant proposes to 242
establish its principal place of business and any other 243
location, including branch offices and authorized vendors 244
operating in this state. For each branch office and each 245
location of an authorized vendor, the applicant shall include 246
the nonrefundable fee required by s. 560.143. 247
8. The name and address of the clearing financial 248
institution or financial institutions through which the 249
applicant's payment instruments are drawn or through which the 250
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payment instruments are payable. 251
9. The history of the applicant's material litigation, 252
criminal convictions, pleas of nolo contendere, and cases of 253
adjudication withheld. 254
10. The history of material litigation, arrests, criminal 255
convictions, pleas of nolo conten dere, and cases of adjudication 256
withheld for each control executive officer, director, 257
controlling shareholder, and responsible person. 258
11. The name of the registered agent in this state for 259
service of process unless the applicant is a sole proprietor. 260
12. Any other information specified in this chapter or by 261
rule. 262
Section 9. Paragraph (g) of subsection (1) of section 263
560.143, Florida Statutes, is amended to read: 264
560.143 Fees.— 265
(1) LICENSE APPLICATION FEES. —The applicable non-266
refundable fees must accompany an application for licensure: 267
(g) License application fees for branch offices and 268
authorized vendors are limited to $20,000 when such fees are 269
assessed as a result of a change in control controlling interest 270
as defined in s. 560.127 . 271
Section 10. This act shall take effect October 1, 2022. 272