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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 the Office of Financial Regulation; 2
amending s. 20.121, F.S.; authorizing the Bureau of 3
Financial Investigations within the Office of 4
Financial Regulation to include law enforcement 5
officers among its investigative personnel; requiring 6
that such law enforcement officers be considered state 7
law enforcement officers; providing requirements for, 8
and duties and authority of, such law enforcement 9
officers; amending s. 120.80, F.S.; revising the 10
grounds for denial of a license application to 11
establish a new bank, trust company, or capital stock 12
savings association under certain circumstances; 13
amending s. 475.01, F.S.; conforming a cross -14
reference; amending s. 494.00312, F.S.; revising 15
requirements for loan originator license applications; 16
revising processes for fingerprinting and criminal 17
history background checks; requiring the Financial 18
Services Commission to establish certain criteria to 19
assess applicants for loan originator license 20
applications; providing requirements for such 21
criteria; deleting a provision relating to the 22
expiration of licenses; amending s. 494.00313, F.S.; 23
specifying fingerprinting processes for loan 24
originator license renewal applications; providing 25
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duties for the office; amending s. 494.00321, F.S.; 26
revising processes for fingerprinting and criminal 27
history background checks; requiring the commission to 28
establish certain criteria to assess applicants for 29
mortgage broker license applications; providing 30
requirements for such criteria; deleting a provision 31
relating to the expi ration of licenses; amending s. 32
494.00322, F.S.; specifying fingerprinting processes 33
for mortgage broker license renewal applications; 34
providing duties for the office; deleting a 35
requirement relating to credit reports of licensee's 36
control persons; amendin g s. 494.00611, F.S.; revising 37
processes for fingerprinting and criminal history 38
background checks; requiring the commission to 39
establish certain criteria to assess applicants for 40
mortgage lender license applications; providing 41
requirements for such criter ia; deleting a provision 42
relating to the expiration of licenses; amending s. 43
494.00612, F.S.; specifying fingerprinting processes 44
for mortgage lender license renewal applications; 45
providing duties for the office; deleting requirements 46
relating to certain p roof of net worth and to credit 47
reports of licensee's control persons; creating s. 48
501.2076, F.S.; providing that impositions of fees or 49
other charges by third -party agents or entities for 50
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certain purposes are violations of specified statutes; 51
amending s. 518.117, F.S.; conforming a cross -52
reference; repealing part V of ch. 559, F.S., relating 53
to the Florida Commercial Collection Practices Act; 54
amending s. 559.952, F.S.; conforming a cross -55
reference; amending s. 560.103, F.S.; revising and 56
deleting definitions; amending s. 560.104, F.S.; 57
revising the list of entities that are exempt from 58
specified statutes; providing a list of entities that 59
are exempt from license requirements of specified 60
statutes; amending s. 560.105, F.S.: providing that 61
the office is responsible for the administration and 62
enforcement of ch. 560, F.S.; repealing s. 560.107, 63
F.S., relating to liability; amending s. 560.109, 64
F.S.; authorizing the office to waive specified 65
examination requirements under certain circumstances; 66
conforming a provision to changes made by the act; 67
revising the timeline requirement to make records 68
available to the office under certain circumstances; 69
repealing ss. 560.1091 and 560.1092, F.S., relating to 70
contracted examinations and examination expenses, 71
respectively; amending s. 560.111, F.S.; revising 72
prohibited activities of money services businesses, 73
authorized vendors, and affiliated parties; amending 74
s. 560.114, F.S.; providing actions that constitute 75
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grounds for specified disciplinary actions against 76
compliance officers of money services businesses; 77
revising actions that constitute grounds for specified 78
disciplinary actions against money services 79
businesses, authorized vendors, and affiliated 80
parties; deleting provisions relating to summary 81
suspensions of money se rvices business licenses; 82
providing circumstances under which compliance 83
officers of money services businesses are responsible 84
for acts of certain money services businesses, 85
authorized vendors, and affiliated parties; amending 86
s. 560.118, F.S.; deleting pr ovisions requiring 87
licensees to file annual financial audit reports and 88
to bear the costs of the audits; amending s. 560.126, 89
F.S.; deleting provisions relating to licensees that 90
engage in check cashing under certain circumstances; 91
amending s. 560.128, F.S .; deleting a provision 92
relating to the commission's rulemaking authority; 93
amending s. 560.129, F.S.; conforming a provision to 94
changes made by the act; conforming a cross -reference; 95
amending s. 560.141, F.S.; revising the information 96
required for money se rvices business license 97
applications; deleting obsolete language; making 98
technical changes; amending s. 560.203, F.S.; 99
specifying activities that licensees may authorize 100
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authorized vendors to conduct; amending s. 560.205, 101
F.S.; specifying the financial aud it reports that may 102
be submitted for certain license applications under 103
certain circumstances; creating s. 560.2051, F.S.; 104
providing requirements for license applicants or 105
licensees that intend to conduct money services 106
business activities through branch o ffices; amending 107
s. 560.208, F.S.; conforming a provision to changes 108
made by the act; amending s. 560.309, F.S.; revising 109
requirements for licensees' payment instruments; 110
requiring licensees to notify the office within a 111
specified timeframe if licensees ce ase to maintain 112
certain depository accounts; revising requirements for 113
licensees to resume cashing payment instruments under 114
certain circumstances; defining the term "authorized 115
officer"; requiring certain branch offices, rather 116
than locations, of licensee s to be equipped with 117
security camera systems; deleting a provision 118
requiring check cashers to display their licenses; 119
amending s. 560.310, F.S.; revising requirements for 120
customer identification documentation for cashing 121
payment instruments under a specif ied circumstance; 122
revising the information that licensees must submit to 123
the check cashing database; deleting provisions 124
relating to a competitive solicitation by the office 125
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for an online check cashing database; amending s. 126
560.312, F.S.; making a technica l change; amending s. 127
655.045, F.S.; revising requirements for examinations 128
of state financial institutions under certain 129
circumstances; requiring each board director of a 130
state financial institution to review an examination 131
report and acknowledge receipt of the report; amending 132
s. 655.414, F.S.; revising authorization for financial 133
institutions in acquiring assets and liabilities of 134
other financial institutions; providing calculations 135
of asset and liability percentages; revising the 136
limits on sales of asse ts by mutual financial 137
institutions to stock financial institutions; amending 138
s. 655.50, F.S.; revising the definition of the term 139
"financial institution"; amending s. 657.021, F.S.; 140
requiring credit unions to submit to the office names 141
and residence addresses of specified elected and 142
appointed persons within a specified timeframe under 143
certain circumstances; amending s. 657.028, F.S.; 144
deleting a provision requiring the filing with the 145
office of names and addresses of specified persons of 146
credit unions; amending s. 658.12, F.S.; defining the 147
term "target market"; amending s. 658.20, F.S.; 148
revising investigation requirements for the office 149
upon applications for banks and trust facilities; 150
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amending s. 658.21, F.S.; revising findings 151
requirements for the office for approval of 152
applications for state banks and trust companies; 153
amending s. 658.28, F.S.; providing notification 154
requirements for acquiring a controlling interest in a 155
state bank or state trust company through probate or 156
trust; providing requirements be fore such an interest 157
gives rise to a presumption of control; amending s. 158
658.2953, F.S.; defining the term "de novo branch"; 159
amending s. 662.1225, F.S.; revising requirements for 160
deposit accounts of family trust companies and 161
licensed family trust compani es; amending s. 662.128, 162
F.S.; revising the timeline for family trust 163
companies, licensed family trust companies, and 164
foreign licensed family trust companies to file annual 165
renewal applications; amending s. 663.07, F.S.; 166
revising requirements for internati onal bank agencies 167
and international branches; amending s. 663.532, F.S.; 168
revising the information that must be included in the 169
notice filed with the office by proposed qualified 170
limited service affiliates; requiring qualified 171
limited service affiliates to suspend specified 172
permissible activities under certain circumstances; 173
providing circumstances under which suspensions may be 174
lifted; amending s. 736.0802, F.S.; conforming a 175
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cross-reference; providing appropriations; providing 176
an effective date. 177
178
Be It Enacted by the Legislature of the State of Florida: 179
180
Section 1. Paragraph (a) of subsection (3) of section 181
20.121, Florida Statutes, is amended to read: 182
20.121 Department of Financial Services. —There is created 183
a Department of Financial Services. 184
(3) FINANCIAL SERVICES COMMISSION. —Effective January 7, 185
2003, there is created within the Department of Financial 186
Services the Financial Services Commission, composed of the 187
Governor, the Attorney General, the Chief Financial Officer, and 188
the Commissioner of Agriculture, which shall for purposes of 189
this section be referred to as the commission. Commission 190
members shall serve as agency head of the Financial Services 191
Commission. The commission shall be a separate budget entity and 192
shall be exempt from the pr ovisions of s. 20.052. Commission 193
action shall be by majority vote consisting of at least three 194
affirmative votes. The commission shall not be subject to 195
control, supervision, or direction by the Department of 196
Financial Services in any manner, including pu rchasing, 197
transactions involving real or personal property, personnel, or 198
budgetary matters. 199
(a) Structure.—The major structural unit of the commission 200
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is the office. Each office shall be headed by a director. The 201
following offices are established: 202
1. The Office of Insurance Regulation, which shall be 203
responsible for all activities concerning insurers and other 204
risk bearing entities, including licensing, rates, policy forms, 205
market conduct, claims, issuance of certificates of authority, 206
solvency, viatical settlements, premium financing, and 207
administrative supervision, as provided under the insurance code 208
or chapter 636. The head of the Office of Insurance Regulation 209
is the Director of the Office of Insurance Regulation, who may 210
also be known as the Commi ssioner of Insurance Regulation. 211
2. The Office of Financial Regulation, which shall be 212
responsible for all activities of the Financial Services 213
Commission relating to the regulation of banks, credit unions, 214
other financial institutions, finance companies , and the 215
securities industry. The head of the office is the Director of 216
the Office of Financial Regulation, who may also be known as the 217
Commissioner of Financial Regulation. The Office of Financial 218
Regulation shall include a Bureau of Financial Investiga tions, 219
which shall function as a criminal justice agency for purposes 220
of ss. 943.045-943.08 and shall have a separate budget. The 221
bureau may conduct investigations within or outside this state 222
as the bureau deems necessary to aid in the enforcement of this 223
section. 224
a. The bureau may include law enforcement officers among 225
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its investigative personnel. These law enforcement officers 226
shall be considered state law enforcement officers for all 227
purposes. They must be certified officers in compliance with s. 228
943.1395 or meet the requirements of s. 943.13(1) -(10) until 229
certified, and the bureau must comply with s. 943.133(2) and 230
(3). These law enforcement officers may bear arms in the 231
performance of their duties, and they may execute arrest 232
warrants and search warr ants; serve subpoenas issued for the 233
examination, investigation, and trial of all offenses; make 234
arrests upon probable cause without warrant any person found in 235
the act of violating a provision of law; and make arrests for 236
criminal violations established a s a result of their 237
investigations. 238
b. If, during an investigation, the office has reason to 239
believe that any criminal law of this state has or may have been 240
violated, the office shall refer any records tending to show 241
such violation to state or federal law enforcement or 242
prosecutorial agencies and shall provide investigative 243
assistance to those agencies as required. 244
Section 2. Paragraph (a) of subsection (3) of section 245
120.80, Florida Statutes, is amended to read: 246
120.80 Exceptions and special requ irements; agencies.— 247
(3) OFFICE OF FINANCIAL REGULATION. — 248
(a) Notwithstanding s. 120.60(1), in proceedings for the 249
issuance, denial, renewal, or amendment of a license or approval 250
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of a merger pursuant to title XXXVIII: 251
1.a. The Office of Financial Regulation of the Financial 252
Services Commission shall have published in the Florida 253
Administrative Register notice of the application within 21 days 254
after receipt. 255
b. Within 21 days after publication of notice, any person 256
may request a hearing. Failure t o request a hearing within 21 257
days after notice constitutes a waiver of any right to a 258
hearing. The Office of Financial Regulation or an applicant may 259
request a hearing at any time prior to the issuance of a final 260
order. Hearings shall be conducted pursuan t to ss. 120.569 and 261
120.57, except that the Financial Services Commission shall by 262
rule provide for participation by the general public. 263
2. Should a hearing be requested as provided by sub -264
subparagraph 1.b., the applicant or licensee shall publish at 265
its own cost a notice of the hearing in a newspaper of general 266
circulation in the area affected by the application. The 267
Financial Services Commission may by rule specify the format and 268
size of the notice. 269
3. Notwithstanding s. 120.60(1), and except as prov ided in 270
subparagraph 4., an application for license for a new bank, new 271
trust company, new credit union, new savings and loan 272
association, or new licensed family trust company must be 273
approved or denied within 180 days after receipt of the original 274
application or receipt of the timely requested additional 275
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information or correction of errors or omissions. An application 276
for such a license or for acquisition of such control which is 277
not approved or denied within the 180 -day period or within 30 278
days after conclusion of a public hearing on the application, 279
whichever is later, shall be deemed approved subject to the 280
satisfactory completion of conditions required by statute as a 281
prerequisite to license and approval of insurance of accounts 282
for a new bank, a new sa vings and loan association, a new credit 283
union, or a new licensed family trust company by the appropriate 284
insurer. 285
4. In the case of an application for license to establish 286
a new bank, trust company, or capital stock savings association 287
in which a foreign national proposes to own or control 10 288
percent or more of any class of voting securities, and in the 289
case of an application by a foreign national for approval to 290
acquire control of a bank, trust company, or capital stock 291
savings association, the Office o f Financial Regulation shall 292
request that a public hearing be conducted pursuant to ss. 293
120.569 and 120.57. Notice of such hearing shall be published by 294
the applicant as provided in subparagraph 2. The failure of such 295
foreign national to appear personally at or to participate 296
through video conference in the hearing shall be grounds for 297
denial of the application. Notwithstanding s. 120.60(1) and 298
subparagraph 3., every application involving a foreign national 299
shall be approved or denied within 1 year after re ceipt of the 300
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original application or any timely requested additional 301
information or the correction of any errors or omissions, or 302
within 30 days after the conclusion of the public hearing on the 303
application, whichever is later. 304
Section 3. Subsection (4 ) of section 475.01, Florida 305
Statutes, is amended to read: 306
475.01 Definitions. — 307
(4) A broker acting as a trustee of a trust created under 308
chapter 689 is subject to the provisions of this chapter unless 309
the trustee is a bank, state or federal associatio n, or trust 310
company possessing trust powers as defined in s. 658.12 s. 311
658.12(23). 312
Section 4. Paragraphs (a) and (f) of subsection (2), 313
subsection (3), paragraph (b) of subsection (4), and subsection 314
(7) of section 494.00312, Florida Statutes, are amen ded to read: 315
494.00312 Loan originator license. — 316
(2) In order to apply for a loan originator license, an 317
applicant must: 318
(a) Be at least 18 years of age and have a high school 319
diploma or its equivalent . 320
(f) Submit fingerprints to the registry for s ubmission to 321
the Federal Bureau of Investigation for a federal criminal 322
history background check. in accordance with rules adopted by 323
the commission: 324
1. The fingerprints may be submitted to the registry, the 325
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office, or a vendor acting on behalf of the re gistry or the 326
office. 327
2. The office may contract with a third -party vendor to 328
provide live-scan fingerprinting. 329
3. A state criminal history background check must be 330
conducted through the Department of Law Enforcement, and a 331
federal criminal history bac kground check must be conducted 332
through the Federal Bureau of Investigation. 333
4. All fingerprints submitted to the Department of Law 334
Enforcement must be submitted electronically and entered into 335
the statewide automated biometric identification system 336
established in s. 943.05(2)(b) and available for use in 337
accordance with s. 943.05(2)(g) and (h). The office shall pay an 338
annual fee to the department to participate in the system and 339
inform the department of any person whose fingerprints are no 340
longer required to be retained. 341
1.5. The costs of fingerprint processing , including the 342
cost of retaining the fingerprints, shall be borne by the person 343
subject to the background check. 344
2.6. The office shall review is responsible for reviewing 345
the result results of the state and federal criminal history 346
background check checks and determine determining whether the 347
applicant meets licensure requirements. 348
(3) An application is considered received for the purposes 349
of s. 120.60 upon the office's receipt of all documenta tion from 350
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the registry, including the completed application form, 351
documentation of completion of the prelicensure class, test 352
results, criminal history information, and independent credit 353
report, as well as the license application fee and, the fee 354
required by s. 494.00172, and all applicable fingerprinting 355
processing fees. 356
(4) The office shall issue a loan originator license to 357
each person who is not otherwise ineligible and who meets the 358
requirements of this section. However, it is a ground for denial 359
of licensure if the applicant: 360
(b) Has failed to demonstrate the character, general 361
fitness, and financial responsibility necessary to command the 362
confidence of the community and warrant a determination that the 363
applicant will operate honestly, fairly, and efficiently. 364
1. If the office has information that could form the basis 365
for license denial under this paragraph, before denying the 366
license, the office must notify the applicant in writing of the 367
specific items of concern and provide the applicant with an 368
opportunity to explain the circumstances surrounding the 369
specific items and provide any information that the applicant 370
believes is relevant to the office's determination. 371
2. For purposes of evaluating adverse information found in 372
an applicant's credit report, the information must be considered 373
within the totality of the circumstances. Information provided 374
by the applicant under subparagraph 1., or information obtained 375
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by the office by other means, may be used to provide a context 376
for the adverse items. For example, the adverse items may have 377
resulted from factors that do not necessarily reflect negatively 378
upon the applicant's character, general fitness, or financial 379
responsibility. 380
3. The commission shall, by rule, establish criteria 381
office may not use a credit score or the absence or 382
insufficiency of credit history information to determine an 383
applicant's character, general fitness, or financial 384
responsibility. The criteria must include the following: 385
a. A minimum credit score, as indicated in the cr edit 386
report authorized by paragraph (2)(g), that is deemed to 387
demonstrate an applicant's character, general fitness, and 388
financial responsibility. 389
b. For an applicant who does not meet the established 390
minimum credit score, a standard review procedure to determine 391
the applicant's character, general fitness, and financial 392
responsibility. 393
394
The absence or insufficiency of credit history information on an 395
applicant may not be used as a criterion to determine the 396
applicant's character, general fitness, and fina ncial 397
responsibility. 398
4. If information contained in a credit report is used as 399
the basis for denying a license, the office shall, in accordance 400
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with s. 120.60(3), provide with particularity the grounds or 401
basis for denial. The use of the terms "poor credit history," 402
"poor credit rating," or similar language does not meet the 403
requirements of this paragraph. 404
(7) All loan originator licenses must be renewed annually 405
by December 31 pursuant to s. 494.00313. If a person holding an 406
active loan originator license has not applied to renew the 407
license on or before December 31, the loan originator license 408
expires on December 31. If a person holding an active loan 409
originator license has applied to renew the license on or before 410
December 31, the loan originator license remains active until 411
the renewal application is approved or denied. A loan originator 412
is not precluded from reapplying for licensure upon expiration 413
of a previous license. 414
Section 5. Paragraph (e) of subsection (1) of section 415
494.00313, Florida Statutes, is redesignated as paragraph (f), 416
paragraph (b) of subsection (1) is amended, and a new paragraph 417
(e) is added to that subsection, to read: 418
494.00313 Loan originator license renewal. — 419
(1) In order to renew a loan originator license, a loan 420
originator must: 421
(b) Submit a nonrefundable renewal fee of $150 and, the 422
$20 nonrefundable fee if required by s. 494.00172 , and 423
nonrefundable fees to cover the cost of further fingerprint 424
processing and retention as set forth in commission rule . 425
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(e) Submit fingerprints to the registry for submission to 426
the Federal Bureau of Investigation for a federal criminal 427
background history check. 428
1. The costs of fingerprint processing shall be borne by 429
the person subject to the background check. 430
2. The office shall review the result of the federal 431
criminal history background check and determine whether the 432
licensee continues to meet licensure requirements. 433
Section 6. Paragraph (d) of subsection (2), subsection 434
(3), paragraph (b) of subsection (4), and subsec tion (7) of 435
section 494.00321, Florida Statutes, are amended to read: 436
494.00321 Mortgage broker license. — 437
(2) In order to apply for a mortgage broker license, an 438
applicant must: 439
(d) Submit fingerprints to the registry for each of the 440
applicant's control persons for submission to the Federal Bureau 441
of Investigation for a federal criminal history background 442
check. in accordance with rules adopted by the commission: 443
1. The fingerprints may be submitted to the registry, the 444
office, or a vendor acting on behalf of the registry or the 445
office. 446
2. The office may contract with a third -party vendor to 447
provide live-scan fingerprinting. 448
3. A state criminal history background check must be 449
conducted through the Department of Law Enforcement, and a 450
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federal criminal history background check must be conducted 451
through the Federal Bureau of Investigation. 452
4. All fingerprints submitted to the Department of Law 453
Enforcement must be submitted electronically and entered into 454
the statewide automated biometric identific ation system 455
established in s. 943.05(2)(b) and available for use in 456
accordance with s. 943.05(2)(g) and (h). The office shall pay an 457
annual fee to the department to participate in the system and 458
inform the department of any person whose fingerprints are n o 459
longer required to be retained. 460
1.5. The costs of fingerprint processing , including the 461
cost of retaining the fingerprints, shall be borne by the person 462
subject to the background check. 463
2.6. The office shall review is responsible for reviewing 464
the results of the state and federal criminal history background 465
checks and determine determining whether the applicant meets 466
licensure requirements. 467
(3) An application is considered received for the purposes 468
of s. 120.60 upon the office's receipt of all docum entation from 469
the registry, including the completed application form, criminal 470
history information, and independent credit report, as well as 471
the license application fee and, the fee required by s. 472
494.00172, and all applicable fingerprinting processing fe es. 473
(4) The office shall issue a mortgage broker license to 474
each person who is not otherwise ineligible and who meets the 475
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requirements of this section. However, it is a ground for denial 476
of licensure if the applicant or one of the applicant's control 477
persons: 478
(b) Has failed to demonstrate the character, general 479
fitness, and financial responsibility necessary to command the 480
confidence of the community and warrant a determination that the 481
applicant will operate honestly, fairly, and efficiently. 482
1. If the office has information that could form the basis 483
for license denial under this paragraph, before denying the 484
license, the office must notify the applicant in writing of the 485
specific items of concern and provide the applicant with an 486
opportunity to expla in the circumstances surrounding the 487
specific items and provide any information that the applicant 488
believes is relevant to the office's determination. 489
2. For purposes of evaluating adverse information found in 490
an applicant's credit report, the informatio n must be considered 491
within the totality of the circumstances. Information provided 492
by the applicant under subparagraph 1., or information obtained 493
by the office by other means, may be used to provide a context 494
for the adverse items. For example, the adver se items may have 495
resulted from factors that do not necessarily reflect negatively 496
upon the applicant's character, general fitness, or financial 497
responsibility. 498
3. The commission shall, by rule, establish criteria 499
office may not use a credit score or the absence or 500
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insufficiency of credit history information to determine an 501
applicant's character, general fitness, or financial 502
responsibility. The criteria must include the following: 503
a. A minimum credit score, as indicated in the credit 504
report authorized by paragraph (2)(e), that is deemed to 505
demonstrate an applicant's character, general fitness, and 506
financial responsibility. 507
b. For an applicant who does not meet the established 508
minimum credit score, a standard review procedure to determine 509
the applicant's character, general fitness, and financial 510
responsibility. 511
512
The absence or insufficiency of credit history information on an 513
applicant may not be used as a criterion to determine the 514
applicant's character, general fitness, and financial 515
responsibility. 516
4. If information contained in a credit report is used as 517
the basis for denying a license, the office shall, in accordance 518
with s. 120.60(3), provide with particularity the grounds or 519
basis for denial. The use of the terms "poor credit history," 520
"poor credit rating," or similar language does not meet the 521
requirements of this paragraph. 522
(7) All mortgage broker licenses must be renewed annually 523
by December 31 pursuant to s. 494.00322. If a person holding an 524
active mortgage broker license has not applied to renew the 525
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license on or before December 31, the mortgage broker license 526
expires on December 31. If a person holding an active mortgage 527
broker license has applied to renew the license on or before 528
December 31, the mortgage broker license remains active unt il 529
the renewal application is approved or denied. A mortgage broker 530
is not precluded from reapplying for licensure upon expiration 531
of a previous license. 532
Section 7. Paragraph (e) of subsection (1) of section 533
494.00322, Florida Statutes, is redesignated as paragraph (d), 534
and paragraphs (b) and (c) and present paragraph (d) of 535
subsection (1) are amended to read: 536
494.00322 Mortgage broker license renewal. — 537
(1) In order to renew a mortgage broker license, a 538
mortgage broker must: 539
(b) Submit a nonrefund able renewal fee of $375 and, the 540
$100 nonrefundable fee if required by s. 494.00172 , and 541
nonrefundable fees to cover the cost of further fingerprint 542
processing and retention as set forth in commission rule . 543
(c) Submit fingerprints to the registry for ea ch of the 544
licensee's in accordance with s. 494.00321(2)(d) for any new 545
control persons for submission to the Federal Bureau of 546
Investigation for a federal criminal history background check 547
who have not been screened . 548
1. The costs of fingerprint processin g shall be borne by 549
the person subject to the background check. 550
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2. The office shall review the results of the federal 551
criminal history background checks and determine whether the 552
licensee continues to meet licensure requirements. 553
(d) Authorize the regi stry to obtain an independent credit 554
report on each of the licensee's control persons from a consumer 555
reporting agency, and transmit or provide access to the report 556
to the office. The cost of the credit report shall be borne by 557
the licensee. 558
Section 8. Paragraph (d) of subsection (2), subsection 559
(3), paragraph (b) of subsection (4), and subsection (10) of 560
section 494.00611, Florida Statutes, are amended to read: 561
494.00611 Mortgage lender license. — 562
(2) In order to apply for a mortgage lender license, an 563
applicant must: 564
(d) Submit fingerprints to the registry for each of the 565
applicant's control persons for submission to the Federal Bureau 566
of Investigation for a federal criminal history background 567
check. in accordance with rules adopted by the commiss ion: 568
1. The fingerprints may be submitted to the registry, the 569
office, or a vendor acting on behalf of the registry or the 570
office. 571
2. The office may contract with a third -party vendor to 572
provide live-scan fingerprinting. 573
3. A state criminal history b ackground check must be 574
conducted through the Department of Law Enforcement, and a 575
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federal criminal history background check must be conducted 576
through the Federal Bureau of Investigation. 577
4. All fingerprints submitted to the Department of Law 578
Enforcement must be submitted electronically and entered into 579
the statewide automated biometric identification system 580
established in s. 943.05(2)(b) and available for use in 581
accordance with s. 943.05(2)(g) and (h). The office shall pay an 582
annual fee to the department to participate in the system and 583
inform the department of any person whose fingerprints are no 584
longer required to be retained. 585
1.5. The costs of fingerprint processing , including the 586
cost of retaining the fingerprints, shall be borne by the person 587
subject to the background check. 588
2.6. The office shall review is responsible for reviewing 589
the results of the state and federal criminal history background 590
checks and determine determining whether the applicant meets 591
licensure requirements. 592
(3) An application is considered received for the purposes 593
of s. 120.60 upon the office's receipt of all documentation from 594
the registry, including the completed application form, criminal 595
history information, and independent credit report, as well as 596
the license applicat ion fee and, the fee required under s. 597
494.00172, and all applicable fingerprinting processing fees . 598
(4) The office shall issue a mortgage lender license to 599
each person who is not otherwise ineligible and who meets the 600
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requirements of this section. Howev er, it is a ground for denial 601
of licensure if the applicant or one of the applicant's control 602
persons: 603
(b) Has failed to demonstrate the character, general 604
fitness, and financial responsibility necessary to command the 605
confidence of the community and war rant a determination that the 606
applicant will operate honestly, fairly, and efficiently. 607
1. If the office has information that could form the basis 608
for license denial under this paragraph, before denying the 609
license, the office must notify the applicant i n writing of the 610
specific items of concern and provide the applicant with an 611
opportunity to explain the circumstances surrounding the 612
specific items and provide any information that the applicant 613
believes is relevant to the office's determination. 614
2. For purposes of evaluating adverse information found in 615
an applicant's credit report, the information must be considered 616
within the totality of the circumstances. Information provided 617
by the applicant under subparagraph 1., or information obtained 618
by the office by other means, may be used to provide a context 619
for the adverse items. For example, the adverse items may have 620
resulted from factors that do not necessarily reflect negatively 621
upon the applicant's character, general fitness, or financial 622
responsibility. 623
3. The commission shall, by rule, establish criteria 624
office may not use a credit score or the absence or 625
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insufficiency of credit history information to determine an 626
applicant's character, general fitness, or financial 627
responsibility. The criteria must include the following: 628
a. A minimum credit score, as indicated in the credit 629
report authorized under paragraph (2)(g), that is deemed to 630
demonstrate an applicant's character, general fitness, and 631
financial responsibility. 632
b. For an applicant who does n ot meet the established 633
minimum credit score, a standard review procedure to determine 634
the applicant's character, general fitness, and financial 635
responsibility. 636
637
The absence or insufficiency of credit history information on an 638
applicant may not be used as a criterion to determine the 639
applicant's character, general fitness, and financial 640
responsibility. 641
4. If information contained in a credit report is used as 642
the basis for denying a license, the office shall, in accordance 643
with s. 120.60(3), provide with particularity the grounds or 644
basis for denial. The use of the terms "poor credit history," 645
"poor credit rating," or similar language does not meet the 646
requirements of this paragraph. 647
(10) All mortgage lender licenses must be renewed annually 648
by December 31 pursuant to s. 494.00612. If a person holding an 649
active mortgage lender license has not applied to renew the 650
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license on or before December 31, the mortgage lender license 651
expires on December 31. If a person holding an active mortgage 652
lender license has applied to renew the license on or before 653
December 31, the mortgage lender license remains active until 654
the renewal application is approved or denied. A mortgage lender 655
is not precluded from reapplying for licensure upon expiration 656
of a previous license. 657
Section 9. Paragraph (f) of subsection (1) of section 658
494.00612, Florida Statutes, is redesignated as paragraph (d), 659
and paragraphs (b), (c), and (e) and present paragraph (d) of 660
subsection (1) are amended to read: 661
494.00612 Mortgage lender license re newal.— 662
(1) In order to renew a mortgage lender license, a 663
mortgage lender must: 664
(b) Submit a nonrefundable renewal fee of $475 and, the 665
$100 nonrefundable fee if required by s. 494.00172 , and 666
nonrefundable fees to cover the cost of further fingerprint 667
processing and retention as set forth in commission rule . 668
(c) Submit fingerprints to the registry for each of the 669
licensee's in accordance with s. 494.00611(2)(d) for any new 670
control persons for submission to the Federal Bureau of 671
Investigation for a fe deral criminal history background check 672
who have not been screened . 673
1. The costs of fingerprint processing shall be borne by 674
the person subject to the background check. 675
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2. The office shall review the results of the federal 676
criminal history background c hecks and determine whether the 677
licensee continues to meet licensure requirements. 678
(d) Provide proof that the mortgage lender continues to 679
meet the applicable net worth requirement in a form prescribed 680
by commission rule. 681
(e) Authorize the registry to obtain an independent credit 682
report on each of the mortgage lender's control persons from a 683
consumer reporting agency, and transmit or provide access to the 684
report to the office. The cost of the credit report shall be 685
borne by the licensee. 686
Section 10. Section 501.2076, Florida Statutes, is created 687
to read: 688
501.2076 Violations involving consumer financial 689
institution account fees. —A third-party agent or entity that 690
directly or indirectly imposes a fee or other charge on a 691
consumer for an online audit verification of an account 692
maintained by a financial institution as defined in s. 655.005, 693
or for an online audit verification of the associated balance of 694
such account, violates this part. 695
Section 11. Section 518.117, Florida Statutes, is amended 696
to read: 697
518.117 Permissible investments of fiduciary funds. —A 698
fiduciary that is authorized by lawful authority to engage in 699
trust business as defined in s. 658.12 s. 658.12(20) may invest 700
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fiduciary funds in accordance with s. 660.417 so long as the 701
investment otherwise complies with this chapter. 702
Section 12. Part V of chapter 559, Florida Statutes, 703
consisting of sections 559.541, 559.542, 559.543, 559.544, 704
559.545, 559.546, 559.547, and 559.548, Florida Statutes, is 705
repealed. 706
Section 13. Paragraph (a) of subsection (4) of section 707
559.952, Florida Statutes, is amended to read: 708
559.952 Financial Technology Sandbox. — 709
(4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE 710
REQUIREMENTS.— 711
(a) Notwithstanding any other law, upon approval of a 712
Financial Technology Sandbox application, the following 713
provisions and corresponding rule requirements are not 714
applicable to the licensee during the sandbox period: 715
1. Section 516.03(1), except for the application fee, the 716
investigation fee, the requirement to provi de the social 717
security numbers of control persons, evidence of liquid assets 718
of at least $25,000, and the office's authority to investigate 719
the applicant's background. The office may prorate the license 720
renewal fee for an extension granted under subsection (7). 721
2. Section 516.05(1) and (2), except that the office shall 722
investigate the applicant's background. 723
3. Section 560.109, only to the extent that the section 724
requires the office to examine a licensee at least once every 5 725
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years. 726
4. Section 560.118 560.118(2). 727
5. Section 560.125(1), only to the extent that the 728
subsection would prohibit a licensee from engaging in the 729
business of a money transmitter or payment instrument seller 730
during the sandbox period. 731
6. Section 560.125(2), only to the extent that the 732
subsection would prohibit a licensee from appointing an 733
authorized vendor during the sandbox period. Any authorized 734
vendor of such a licensee during the sandbox period remains 735
liable to the holder or remitter. 736
7. Section 560.128. 737
8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7. -738
10. and (b), (c), and (d). 739
9. Section 560.142(1) and (2), except that the office may 740
prorate, but may not entirely eliminate, the license renewal 741
fees in s. 560.143 for an extension granted under subsection 742
(7). 743
10. Section 560.143(2), only to the extent necessary for 744
proration of the renewal fee under subparagraph 9. 745
11. Section 560.204(1), only to the extent that the 746
subsection would prohibit a licensee from engaging in, or 747
advertising that it engages i n, the selling or issuing of 748
payment instruments or in the activity of a money transmitter 749
during the sandbox period. 750
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12. Section 560.205(2). 751
13. Section 560.208(2). 752
14. Section 560.209, only to the extent that the office 753
may modify, but may not enti rely eliminate, the net worth, 754
corporate surety bond, and collateral deposit amounts required 755
under that section. The modified amounts must be in such lower 756
amounts that the office determines to be commensurate with the 757
factors under paragraph (5)(c) and t he maximum number of 758
consumers authorized to receive the financial product or service 759
under this section. 760
Section 14. Subsections (6) through (12) and (14) through 761
(35) of section 560.103, Florida Statutes, are renumbered as 762
subsections (5) through (11 ) and (12) through (33), 763
respectively, and subsections (3) and (4) and present 764
subsections (5), (6), (8), (9), (13), (15), (17), and (20) of 765
that section are amended to read: 766
560.103 Definitions. —As used in this chapter, the term: 767
(3) "Authorized vendo r" means a person designated by a 768
money services business licensed under part II of this chapter 769
to act only as a money transmitter or payment instrument seller 770
on behalf of the licensee at locations in this state pursuant to 771
a written contract with the li censee. 772
(4) "Branch office" means the physical location, other 773
than the principal place of business, of a money services 774
business operated by a licensee under this chapter. The term 775
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includes: 776
(a) The physical location of a kiosk, automated teller 777
machine, or similar device from which a licensee conducts money 778
services business transactions under this part; or 779
(b) A motor vehicle or mobile unit that can be driven to a 780
physical location where money services business activities under 781
this part occur. 782
(5) "Cashing" means providing currency for payment 783
instruments except for travelers checks. 784
(5)(6) "Check casher" has the same meaning as the term 785
"check casher" provided in 31 C.F.R. s. 1010.100(ff)(2), in 786
effect on February 25, 2014 means a person who s ells currency in 787
exchange for payment instruments received, except travelers 788
checks. 789
(7)(8) "Compliance officer" means the individual 790
designated by the money services business on the most recent 791
application form or amendment thereto who is responsible fo r 792
ensuring compliance with: 793
(a) The money services business's anti -money laundering 794
program. 795
(b) All applicable state and federal money services 796
businesses laws and rules. 797
(c) All applicable state and federal laws and rules 798
related to the detection a nd prevention of money laundering, 799
including, but not limited to, applicable rules under 31 C.F.R. 800
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parts 1010 and 1022 in effect on October 26, 2010. 801
(d) This chapter and the rules in chapter 69V -560, Florida 802
Administrative Code in charge of overseeing, managing, and 803
ensuring that a money services business is in compliance with 804
all state and federal laws and rules relating to money services 805
businesses, as applicable, including all money laundering laws 806
and rules. 807
(8)(9) "Conductor" means a natural perso n who presents 808
himself or herself to a licensee for purposes of cashing a 809
corporate payment instrument to a check casher and is an 810
authorized officer, as defined in s. 560.309(4), of the payee . 811
(13) "Department" means the Department of Financial 812
Services. 813
(13)(15) "Financial audit report" means a report prepared 814
in connection with a financial audit that is conducted in 815
accordance with generally accepted auditing standards prescribed 816
by the American Institute of Certified Public Accountants by a 817
certified public accountant licensed to do business in the 818
United States, and which must include: 819
(a) Financial statements, balance sheets, income 820
statements, statements of cash flow, including notes related to 821
the financial statements , and required supplementar y 822
information, prepared in conformity with accounting principles 823
generally accepted in the United States. The notes must, at a 824
minimum, include detailed disclosures regarding receivables that 825
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are greater than 90 days, if the total amount of such 826
receivables represents more than 2 percent of the licensee's 827
total assets. 828
(b) An expression of opinion regarding whether the 829
financial statements are presented in conformity with accounting 830
principles generally accepted in the United States, or an 831
assertion to the effect that such an opinion cannot be expressed 832
and the reasons. 833
(c) A signed and dated cover letter from the certified 834
public accountant. 835
(15)(17) "Foreign currency exchanger" has the same meaning 836
as the term "dealer in foreign exchange" provided in 31 C.F.R. 837
s. 1010.100(ff)(1), in effect on February 25, 2014 means a 838
person who exchanges, for compensation, currency of the United 839
States or a foreign government to currency of another 840
government. 841
(18)(20) "Location" means a branch office , mobile 842
location, or location of an authorized vendor whose business 843
activity is regulated under this chapter. 844
Section 15. Section 560.104, Florida Statutes is amended 845
to read: 846
560.104 Exemptions. — 847
(1) The following entities are exempt from the provisions 848
of this chapter: 849
(a)(1) Banks, credit card banks, credit unions, trust 850
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companies, associations, offices of an international banking 851
corporation, Edge Act or agreement corporations, or other 852
financial depository institutions organized under the laws of 853
any state or the United States. 854
(b)(2) The United States or any agency or instrumentality 855
thereof. 856
(c)(3) This state or any political subdivision of this 857
state or a contractor of this state or of any political 858
subdivision of this state . 859
(2) The following entities are exempt from the license 860
requirements of parts I and II of this chapter: 861
(a) A person appointed by a payee to collect and process 862
payments as the bona fide agent of the payee, provided that the 863
person can demonstrate all of the following to the office upon 864
request: 865
1. There exists a written agreement between the payee and 866
the agent directing the agent to collect and process payments on 867
the payee's behalf. 868
2. The payee holds the agent out to the public as 869
accepting payments on the payee's behalf. 870
3. Payment is treated as received by the payee upon 871
receipt by the agent. 872
(b) A person registered as a securities broker -dealer 873
under chapter 517, to the extent the person's money transmission 874
activities are ancillary to the person's operation as a broker-875
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dealer. 876
(c) A contractor for and on behalf of the United States or 877
any department, agency, or instrumentality of the United States, 878
or a contractor for and on behalf of any state or a political 879
subdivision of any state, that provides electron ic funds 880
transfer of government benefits for any federal, state, or 881
county governmental agency. As used in this paragraph, the term 882
"electronic funds transfer" means any transfer of funds that is 883
initiated through an electronic terminal, telephone, compute r, 884
or magnetic tape for the purpose of ordering, instructing, or 885
authorizing a financial institution to debit or credit a 886
consumer's account. The term includes, but is not limited to: 887
1. Point-of-sale transfers. 888
2. Automated teller machine transfers. 889
3. Direct deposits or withdrawals of funds. 890
4. Transfers initiated by telephone. 891
5. Transfers resulting from debit card transactions, 892
regardless of whether initiated through an electronic terminal. 893
Section 16. Subsection (1) of section 560.105, Fl orida 894
Statutes, is amended to read: 895
560.105 Supervisory powers; rulemaking. — 896
(1) The office is responsible for the administration and 897
enforcement of this chapter and shall: 898
(a) Supervise all money services businesses and their 899
authorized vendors. 900
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(b) Have access to the books and records of persons the 901
office supervises as necessary to carry out the duties and 902
functions of the office under this chapter. 903
(c) Issue orders and declaratory statements, disseminate 904
information, and otherwise administer a nd enforce this chapter 905
and all related rules in order to effectuate the purposes, 906
policies, and provisions of this chapter. 907
Section 17. Section 560.107, Florida Statutes, is 908
repealed. 909
Section 18. Subsections (1) and (2) and paragraph (a) of 910
subsection (3) of section 560.109, Florida Statutes, are amended 911
to read: 912
560.109 Examinations and investigations. —The office may 913
conduct examinations and investigations, within or outside this 914
state to determine whether a person has violated any provision 915
of this chapter and related rules, or of any practice or conduct 916
that creates the likelihood of material loss, insolvency, or 917
dissipation of the assets of a money services business or 918
otherwise materially prejudices the interests of their 919
customers. 920
(1) The office may, without advance notice, examine or 921
investigate each licensee as often as is warranted for the 922
protection of customers and in the public interest. However, The 923
office must examine each licensee at least once every 5 years. 924
The office may waive the 5-year examination requirement if the 925
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licensee's most recent examination resulted in an examination 926
report that contains no findings of alleged violations. The 927
waiver may occur only once within a consecutive 10 -year period. 928
However, the waiver is not a vailable for a check casher that 929
cashed corporate payment instruments during the preceding 5 930
years. The office may, without advance notice, examine or 931
investigate a money services business, authorized vendor, 932
affiliated party, or license applicant at any t ime if the office 933
suspects that the money services business, authorized vendor, 934
affiliated party, or license applicant has violated or is about 935
to violate any provision of this chapter or any criminal law of 936
this state or of the United States. 937
(2) The office may conduct a joint or concurrent 938
examination with any state or federal regulatory agency and may 939
furnish a copy of all examinations to an appropriate regulator 940
if the regulator agrees to abide by the confidentiality 941
provisions in chapter 119 and this chapter. The office may also 942
accept an examination from any appropriate regulator or, 943
pursuant to s. 560.1091, from an independent third party that 944
has been approved by the office . 945
(3) Persons subject to this chapter who are examined or 946
investigated shall make available to the office all books, 947
accounts, documents, files, information, assets, and matters 948
that are in their immediate possession or control and that 949
relate to the subject of the examination or investigation. 950
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(a) Records not in their immedia te possession must be made 951
available to the office within 3 business days after actual 952
notice is served. 953
Section 19. Section 560.1091, Florida Statutes, is 954
repealed. 955
Section 20. Section 560.1092, Florida Statutes, is 956
repealed. 957
Section 21. Paragraph (b) of subsection (1) of section 958
560.111, Florida Statutes, is amended to read: 959
560.111 Prohibited acts. — 960
(1) A money services business, authorized vendor, or 961
affiliated party may not: 962
(b) Embezzle, convert abstract, or misappropriate misapply 963
any money, property, or thing of value belonging to the money 964
services business, an authorized vendor, or customer with intent 965
to deceive or defraud. 966
Section 22. Subsections (3), (4), and (5) of section 967
560.114, Florida Statutes, are renumbered as subsections (2), 968
(3), and (4), respectively, subsection (1) and present 969
subsection (2) are amended, and a new subsection (5) is added to 970
that section, to read: 971
560.114 Disciplinary actions; penalties. — 972
(1) The following actions by a money services busi ness, 973
authorized vendor, compliance officer, or affiliated party 974
constitute grounds for the issuance of a cease and desist order; 975
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the issuance of a removal order; the denial, suspension, or 976
revocation of a license; or taking any other action within the 977
authority of the office pursuant to this chapter: 978
(a) Failure to comply with any provision of this chapter 979
or related rule or order, or any written agreement entered into 980
with the office. 981
(b) Fraud, misrepresentation, deceit, or gross negligence 982
in any transaction by a money services business, regardless of 983
reliance thereon by, or damage to, a customer. 984
(c) Fraudulent misrepresentation, circumvention, or 985
concealment of any matter that must be stated or furnished to a 986
customer pursuant to this chapter, re gardless of reliance 987
thereon by, or damage to, such customer. 988
(d) False, deceptive, or misleading advertising. 989
(e) Failure to maintain, preserve, keep available for 990
examination, and produce all books, accounts, files, or other 991
documents required by thi s chapter or related rules or orders, 992
by 31 C.F.R. ss. 1010.306, 1010.311, 1010.312, 1010.340, 993
1010.410, 1010.415, 1022.210, 1022.320, 1022.380, and 1022.410, 994
or by an agreement entered into with the office. 995
(f) Refusing to allow the examination or inspe ction of 996
books, accounts, files, or other documents by the office 997
pursuant to this chapter, or to comply with a subpoena issued by 998
the office. 999
(g) Failure to pay a judgment recovered in any court by a 1000
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claimant in an action arising out of a money transmis sion 1001
transaction within 30 days after the judgment becomes final. 1002
(h) Engaging in an act prohibited under s. 560.111. 1003
(i) Insolvency. 1004
(j) Failure by a money services business to remove an 1005
affiliated party after the office has issued and served upon t he 1006
money services business a final order setting forth a finding 1007
that the affiliated party has violated a provision of this 1008
chapter. 1009
(k) Making a material misstatement, misrepresentation, or 1010
omission in an application for licensure, any amendment to such 1011
application, or application for the appointment of an authorized 1012
vendor. 1013
(l) Committing any act that results in a license or its 1014
equivalent, to practice any profession or occupation being 1015
denied, suspended, revoked, or otherwise acted against by a 1016
licensing authority in any jurisdiction. 1017
(m) Being the subject of final agency action or its 1018
equivalent, issued by an appropriate regulator, for engaging in 1019
unlicensed activity as a money services business or deferred 1020
presentment provider in any jurisdiction. 1021
(n) Committing any act resulting in a license or its 1022
equivalent to practice any profession or occupation being 1023
denied, suspended, revoked, or otherwise acted against by a 1024
licensing authority in any jurisdiction for a violation of 18 1025
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U.S.C. s. 1956, 18 U .S.C. s. 1957, 18 U.S.C. s. 1960, 31 U.S.C. 1026
s. 5324, or any other law or rule of another state or of the 1027
United States relating to a money services business, deferred 1028
presentment provider, or usury that may cause the denial, 1029
suspension, or revocation of a money services business or 1030
deferred presentment provider license or its equivalent in such 1031
jurisdiction. 1032
(o) Having been convicted of, or entered a plea of guilty 1033
or nolo contendere to, regardless of adjudication, any felony or 1034
crime that punishable by imprisonment of 1 year or more under 1035
the law of any state or the United States which involves fraud, 1036
dishonesty, breach of trust, money laundering, or act of moral 1037
turpitude, or dishonest dealing, regardless of adjudication . 1038
(p) Having been convicted of, or entered a plea of guilty 1039
or nolo contendere to, a crime under 18 U.S.C. s. 1956 or 31 1040
U.S.C. s. 5324, regardless of adjudication. 1041
(q) Having been convicted of, or entered a plea of guilty 1042
or nolo contendere to, misappropriation, conversion, or unlawfu l 1043
withholding of moneys belonging to others, regardless of 1044
adjudication. 1045
(r) Failure to inform the office in writing within 30 days 1046
after having pled guilty or nolo contendere to, or being 1047
convicted of, any felony or crime punishable by imprisonment of 1048
1 year or more under the law of any state or the United States, 1049
or any crime involving fraud, moral turpitude, or dishonest 1050
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dealing. 1051
(r)(s) Aiding, assisting, procuring, advising, or abetting 1052
any person in violating a provision of this chapter or any orde r 1053
or rule of the office or commission. 1054
(s)(t) Failure to pay any fee, charge, or cost imposed or 1055
assessed under this chapter. 1056
(t)(u) Failing to pay a fine assessed by the office within 1057
30 days after the due date as stated in a final order. 1058
(u)(v) Failure to pay any judgment entered by any court 1059
within 30 days after the judgment becomes final. 1060
(v)(w) Engaging or advertising engagement in the business 1061
of a money services business or deferred presentment provider 1062
without a license, unless exempted from licensure. 1063
(w)(x) Payment to the office for a license or other fee, 1064
charge, cost, or fine with a ch eck or electronic transmission of 1065
funds that is dishonored by the applicant's or licensee's 1066
financial institution. 1067
(x)(y) Violations of 31 C.F.R. ss. 1010.306, 1010.311, 1068
1010.312, 1010.340, 1010.410, 1010.415, 1022.210, 1022.320, 1069
1022.380, and 1022.410, and United States Treasury Interpretive 1070
Release 2004-1. 1071
(y)(z) Any practice or conduct that creates the likelihood 1072
of a material loss, insolvency, or dissipation of assets of a 1073
money services business or otherwise materially prejudices the 1074
interests of its customers. 1075
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(z)(aa) Failure of a check casher to maintain a federally 1076
insured depository account as required by s. 560.309. 1077
(aa)(bb) Failure of a check casher to deposit into its own 1078
federally insured depository account any payment instrument 1079
cashed as required by s. 560.309. 1080
(bb)(cc) Violating any provision of the Military Lending 1081
Act, 10 U.S.C. s. 987, or the regulations adopted under that act 1082
in 32 C.F.R. part 232, in connection with a deferred presentment 1083
transaction conducted under part IV of t his chapter. 1084
(cc) Failure by a compliance officer to take corrective 1085
action, despite the compliance officer's knowledge that the 1086
money services business or affiliated party has repeatedly 1087
violated the following program, laws, or rules: 1088
1. The money services business's anti -money laundering 1089
program. 1090
2. All applicable state and federal money services 1091
businesses laws and rules. 1092
3. All applicable state and federal laws and rules related 1093
to the detection and prevention of money laundering, including, 1094
but not limited to, applicable rules under 31 C.F.R. parts 1010 1095
and 1022 in effect on October 26, 2010. 1096
4. This chapter and the rules in chapter 69V -560, Florida 1097
Administrative Code. 1098
(2) Pursuant to s. 120.60(6), the office may summarily 1099
suspend the license of a money services business if the office 1100
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finds that a licensee poses an immediate, serious danger to the 1101
public health, safety, and welfare. A proceeding in which the 1102
office seeks the issuance of a final order for the summary 1103
suspension of a licensee shall be conducted by the commissioner 1104
of the office, or his or her designee, who shall issue such 1105
order. The following acts are deemed to constitute an immediate 1106
and serious danger to the public health, safety, and welfare, 1107
and the office may immediately suspend the license of a money 1108
services business if: 1109
(a) The money services business fails to provide to the 1110
office, upon written request, any of the records required by s. 1111
560.123, s. 560.1235, s. 560.211, or s. 560.310 or any rule 1112
adopted under those s ections. The suspension may be rescinded if 1113
the licensee submits the requested records to the office. 1114
(b) The money services business fails to maintain a 1115
federally insured depository account as required by s. 560.309. 1116
(c) A natural person required to b e listed on the license 1117
application for a money services business pursuant to s. 1118
560.141(1)(a)3. is criminally charged with, or arrested for, a 1119
crime described in paragraph (1)(o), paragraph (1)(p), or 1120
paragraph(1)(q). 1121
(5) A natural person fulfilling the duties as a compliance 1122
officer of a money services business under this chapter is 1123
responsible for any act of the money services business, an 1124
authorized vendor acting on behalf of the money services 1125
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business, and an affiliated party that violates this chap ter or 1126
the anti-money laundering program if the compliance officer: 1127
(a) Should have known of the act or had actual knowledge 1128
that such act is a violation of this chapter or the anti -money 1129
laundering program. 1130
(b) Allowed the act to continue without noti fying the 1131
money services business' board of directors, chief executive 1132
officer, or president, or a person serving in a similar 1133
capacity. All notification of a violation of this chapter or the 1134
anti-money laundering program must be documented in writing. The 1135
document must be made available to the office upon request and 1136
must include the date and the person to whom notification was 1137
provided. 1138
Section 23. Subsection (1) of section 560.118, Florida 1139
Statutes, is amended to read: 1140
560.118 Reports.— 1141
(1) Annual financial audit reports must be filed with the 1142
office pursuant to this chapter or related rules. The licensee 1143
shall directly bear the cost of the audit. 1144
Section 24. Subsection (4) of section 560.126, Florida 1145
Statutes, is amended to read: 1146
560.126 Required notice by licensee. — 1147
(4) A licensee that engages in check cashing must notify 1148
the office within 5 business days after the licensee ceases to 1149
maintain a federally insured depository account as required by 1150
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s. 560.309(3) and, before resuming check ca shing, must 1151
reestablish such an account and notify the office of the 1152
account. 1153
Section 25. Subsection (2) of section 560.128, Florida 1154
Statutes, is amended to read: 1155
560.128 Customer contacts; license display. — 1156
(2) The commission may by rule require a licensee to 1157
display its license at each location where the licensee engages 1158
in the activities authorized by the license. 1159
Section 26. Paragraph (b) of subsection (5) and subsection 1160
(6) of section 560.129, Florida Statutes, are amended to read: 1161
560.129 Confidentiality.— 1162
(5) This section does not prevent or restrict: 1163
(b) Furnishing records or information to an appropriate 1164
regulator or independent third party who has been approved by 1165
the office to conduct an examination under s. 560.1091, if the 1166
independent third party adheres to the confidentiality 1167
provisions of this chapter ; or 1168
(6) All quarterly reports submitted to the office under s. 1169
560.118 s. 560.118(2) are confidential and exempt from s. 1170
119.07(1) and s. 24(a), Art. I of the State Constitutio n. 1171
Section 27. Paragraphs (a), (c), and (d) of subsection (1) 1172
of section 560.141, Florida Statutes, are amended to read: 1173
560.141 License application. — 1174
(1) To apply for a license as a money services business 1175
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under this chapter, the applicant must su bmit: 1176
(a) An application to the office on forms prescribed by 1177
rule which includes the following information: 1178
1. The legal name and address of the applicant, including 1179
any fictitious or trade names used by the applicant in the 1180
conduct of its business. 1181
2. The date of the applicant's formation and the state in 1182
which the applicant was formed, if applicable. 1183
3. The name, social security number, alien identification 1184
or taxpayer identification number, business and residence 1185
addresses, and employment histor y for the past 5 years for each 1186
officer, director, responsible person, the compliance officer, 1187
each controlling shareholder, and any other person who has a 1188
controlling interest in the money services business as provided 1189
in s. 560.127. 1190
4. A description of the organizational structure of the 1191
applicant, including the identity of any parent or subsidiary of 1192
the applicant, and the disclosure of whether any parent or 1193
subsidiary is publicly traded. 1194
5. The applicant's history of operations in other states 1195
if applicable and a description of the money services business 1196
or deferred presentment provider activities proposed to be 1197
conducted by the applicant in this state. 1198
6. If the applicant or its parent is a publicly traded 1199
company, copies of all filings made by t he applicant with the 1200
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United States Securities and Exchange Commission, or with a 1201
similar regulator in a country other than the United States, 1202
within the preceding year. 1203
7. The physical address, mailing address, and records 1204
storage address location at which the applicant proposes to 1205
establish its principal place of business . The applicant may not 1206
provide a post office box and any other location, including 1207
branch offices and authorized vendors operating in this state. 1208
For each branch office and each locati on of an authorized 1209
vendor, the applicant shall include the nonrefundable fee 1210
required by s. 560.143 . 1211
8. The name and address of the clearing financial 1212
institution or financial institutions through which the 1213
applicant's payment instruments are drawn or t hrough which the 1214
payment instruments are payable. 1215
9. The history of the applicant's material litigation, 1216
criminal convictions, pleas of nolo contendere, and cases of 1217
adjudication withheld. 1218
10. The history of material litigation, arrests, criminal 1219
convictions, pleas of nolo contendere, and cases of adjudication 1220
withheld for each executive officer, director, controlling 1221
shareholder, and responsible person. 1222
11. The name of the registered agent in this state for 1223
service of process unless the applicant is a sole proprietor. 1224
12. Any other information specified in this chapter or by 1225
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commission rule. 1226
(c) Fingerprints for each person listed in subparagraph 1227
(a)3. for live-scan processing in accordance with rules adopted 1228
by the commission. 1229
1. The fingerprints may be submitted through a third -party 1230
vendor authorized by the Department of Law Enforcement to 1231
provide live-scan fingerprinting. 1232
2. The Department of Law Enforcement must conduct the 1233
state criminal history background check, and a federal criminal 1234
history background check must be conducted through the Federal 1235
Bureau of Investigation. 1236
3. All fingerprints submitted to the Department of Law 1237
Enforcement must be submitted electronically and entered into 1238
the statewide automated fingerprint identification system 1239
established in s. 943.05(2)(b) and available for use in 1240
accordance with s. 943.05(2)(g) and (h). The office shall pay an 1241
annual fee to the Department of Law Enforcement to participate 1242
in the system and shall inform the Department of Law Enforcement 1243
of any person whose fingerprints no longer must be retained. 1244
4. The costs of fingerprint processing, including the cost 1245
of retaining the fingerprints, shall be borne by the person 1246
subject to the background check. 1247
5. The office shall review the results of the state and 1248
federal criminal history background checks and determine whether 1249
the applicant meets licensure requirements. 1250
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6. For purposes of this paragraph, fingerprints are not 1251
required to be submitted if the applicant is a publicly traded 1252
corporation or is exempted from this chapter under s. 1253
560.104(1). The term "publicly traded" means a stock is 1254
currently traded on a national securities exchange registered 1255
with the federal Securities and Exchange Commission or traded on 1256
an exchange in a country oth er than the United States regulated 1257
by a regulator equivalent to the Securities and Exchange 1258
Commission and the disclosure and reporting requirements of such 1259
regulator are substantially similar to those of the commission. 1260
7. Licensees initially approved before October 1, 2013, 1261
who are seeking renewal must submit fingerprints for each person 1262
listed in subparagraph (a)3. for live -scan processing pursuant 1263
to this paragraph. Such fingerprints must be submitted before 1264
renewing a license that is scheduled to ex pire between April 30, 1265
2014, and December 31, 2015. 1266
(d) A copy of the applicant's written anti -money 1267
laundering (AML) program as required under 31 C.F.R. s. 1268
1022.210. 1269
Section 28. Section 560.203, Florida Statutes, is amended 1270
to read: 1271
560.203 Exemptions from licensure. —Authorized vendors of a 1272
licensee acting within the scope of authority conferred by the 1273
licensee are exempt from licensure but are otherwise subject to 1274
the provisions of this chapter. Licensees may authorize an 1275
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authorized vendor to cond uct activity only as a money 1276
transmitter or payment instrument seller. 1277
Section 29. Subsection (4) of section 560.205, Florida 1278
Statutes, is amended to read: 1279
560.205 Additional license application requirements. —In 1280
addition to the license application re quirements under part I of 1281
this chapter, an applicant seeking a license under this part 1282
must also submit to the office: 1283
(4) A copy of the applicant's financial audit report for 1284
the most recent fiscal year. 1285
(a) If the applicant is a wholly owned subsidi ary of 1286
another corporation, the financial audit report on the parent 1287
corporation's financial statements shall satisfy this 1288
requirement. 1289
(b) If the applicant was formed within the past 365 days 1290
and has not reached the inaugural fiscal year end, a financia l 1291
audit report that is less than 365 days old may be submitted to 1292
satisfy the initial application requirements. 1293
Section 30. Section 560.2051, Florida Statutes, is created 1294
to read: 1295
560.2051 Branch offices. —In addition to the licensure 1296
requirements specified in s. 560.205, an applicant or licensee 1297
that intends to conduct money services business activity through 1298
a branch office must: 1299
(1) Submit a branch office application form in a manner 1300
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prescribed by commission rule. 1301
(2) Submit a branch office license fee for each branch 1302
office as required in s. 560.143(1). 1303
Section 31. Subsection (1) of section 560.208, Florida 1304
Statutes, is amended to read: 1305
560.208 Conduct of business. —In addition to the 1306
requirements specified in s. 560.1401, a licensee un der this 1307
part: 1308
(1) May conduct its business at one or more locations 1309
within this state through licensed branches or by means of 1310
authorized vendors, as designated by the licensee, including the 1311
conduct of business through electronic transfer, such as by t he 1312
telephone or the Internet. 1313
Section 32. Subsections (3), (4), (6), and (7) of section 1314
560.309, Florida Statutes, are amended to read: 1315
560.309 Conduct of business. — 1316
(3) To cash payment instruments, a licensee under this 1317
part must maintain and depo sit payment instruments into its own 1318
commercial account at a federally insured financial institution. 1319
If a licensee ceases to maintain such a depository account, the 1320
licensee must immediately cease cashing payment instruments and 1321
notify the office within 5 business days after the cessation. 1322
The licensee may resume cashing payment instruments only after 1323
the licensee has notified the office of the cessation, 1324
reestablished not engage in check cashing until the licensee 1325
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reestablishes such an account, and notified notifies the office 1326
of the reestablishment of such an the account as required by s. 1327
560.126(4). 1328
(4) A licensee may not accept or cash a payment instrument 1329
from a person who is not the original payee; however, this 1330
subsection does not prohibit a licens ee from accepting or 1331
cashing a corporate payment instrument from a conductor who is 1332
an authorized officer of the corporate payee named on the 1333
instrument's face. As used in this subsection, the term 1334
"authorized officer" means a natural person who participat es in, 1335
or has the authority to participate in, the major policymaking 1336
functions of a payee, regardless of whether the person has an 1337
official title or receives a salary or other compensation. 1338
(6) Each branch office location of a licensee where checks 1339
are cashed must be equipped with a security camera system that 1340
is capable of recording and retrieving an image in order to 1341
assist in identifying and apprehending an offender. The licensee 1342
does not have to install a security camera system if the 1343
licensee has installed a bulletproof or bullet -resistant 1344
partition or enclosure in the area where checks are cashed. 1345
(7) The commission may by rule require a check casher to 1346
display its license and post a notice listing its charges for 1347
cashing payment instruments. 1348
Section 33. Subsections (5) and (6) of section 560.310, 1349
Florida Statutes, are renumbered as subsections (4) and (5), 1350
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respectively, and paragraphs (b), (c), and (d) of subsection (2) 1351
and present subsection (4) of that section are amended to read: 1352
560.310 Records of check cashers and foreign currency 1353
exchangers.— 1354
(2) If the payment instrument exceeds $1,000, the 1355
following additional information must be maintained or 1356
submitted: 1357
(b) A copy of a valid the personal identification that 1358
bears a photograph of the customer used as identification and 1359
presented by the customer. Valid Acceptable personal 1360
identification is limited to the following documents, which must 1361
be unexpired: 1362
1. A valid driver license; 1363
2. A state identification card issued by any state of the 1364
United States or its territories or the District of Columbia , 1365
and showing a photograph and signature; 1366
3. A United States Government Resident Alien 1367
Identification Card; 1368
4. A passport; or 1369
5. A United States Military identification card. 1370
(c) A thumbprint of the customer taken by the licensee 1371
when the payment instrument is presented for negotiation or 1372
payment. The thumbprint must be located on the original payment 1373
instrument presented. 1374
(d) The office shall, at a minimum, require licensee s to 1375
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submit the following information to the check cashing database 1376
or electronic log, before entering into each check cashing 1377
transaction for each payment instrument being cashed, in such 1378
format as required by rule: 1379
1. Transaction date. 1380
2. Payor name as displayed on the payment instrument. 1381
3. Payee name as displayed on the payment instrument. 1382
4. Conductor name, if different from the payee name. 1383
5. Amount of the payment instrument. 1384
6. Amount of currency provided. 1385
7. Type of payment instrument, which may include personal, 1386
payroll, government, corporate, third -party, or another type of 1387
instrument. 1388
8. Amount of the fee charged for cashing of the payment 1389
instrument. 1390
9. Licensed principal place of business or branch office 1391
or location where the payment instrument was accepted. 1392
10. The type of identification and identification number 1393
presented by the payee or conductor. 1394
11. Payee's workers' compensation insurance policy number 1395
or exemption certificate number, if the payee is a business. 1396
12. Such additional information as required by rule. 1397
1398
For purposes of this subsection, multiple payment instruments 1399
accepted from any one person on any given day which total $1,000 1400
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or more must be aggregated and reported in the check cashing 1401
database or on the log. 1402
(4) The office shall issue a competitive solicitation as 1403
provided in s. 287.057 for a statewide, real time, online check 1404
cashing database to combat fraudulent check cashing activity. 1405
After completing the competitive solicitation process, but 1406
before executing a contract, the office may request funds in its 1407
2014-2015 fiscal year legislative budget request and submit 1408
necessary draft conforming legislation, if needed, to implement 1409
this act. 1410
Section 34. Paragraph (b) of subsection (2) of section 1411
560.312, Florida Statutes, is amended to read: 1412
560.312 Database of payment instrument transactions; 1413
confidentiality.— 1414
(2) 1415
(b) The office, to the extent permitted by state and 1416
federal law, may enter into information -sharing agreements with 1417
the Department of Financial Services , law enforcement agencies, 1418
and other governmental agencies and, in accordance with such 1419
agreements, may provide the department, law enforcement 1420
agencies, and other governmental agencies with access to 1421
information contained in the datab ase for use in detecting and 1422
deterring financial crimes and workers' compensation violations, 1423
pursuant to chapter 440. Any department or agency that receives 1424
confidential information from the office under this paragraph 1425
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must maintain the confidentiality of the information, unless, 1426
and only to the extent that, a court order compels production of 1427
the information to a specific party or parties. 1428
Section 35. Paragraph (a) of subsection (1) and subsection 1429
(4) of section 655.045, Florida Statutes, are amended, and 1430
paragraph (f) is added to subsection (1) of that section, to 1431
read: 1432
655.045 Examinations, reports, and internal audits; 1433
penalty.— 1434
(1) The office shall conduct an examination of the 1435
condition of each state financial institution at least every 18 1436
months. The office may conduct more frequent examinations based 1437
upon the risk profile of the financial institution, prior 1438
examination results, or significant changes in the institution 1439
or its operations. The office may use continuous, phase, or 1440
other flexible scheduling examination methods for very large or 1441
complex state financial institutions and financial institutions 1442
owned or controlled by a multi -financial institution holding 1443
company. The office shall consider examination guidelines from 1444
federal regulatory agencies in order to facilitate, coordinate, 1445
and standardize examination processes. 1446
(a) The office may accept an examination of a state 1447
financial institution made by an appropriate federal regulatory 1448
agency or may conduct a joint or concurrent examinati on of the 1449
institution with the federal agency. However, if the office 1450
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accepts an examination report in accordance with this paragraph, 1451
the office shall conduct at least once during each 36 -month 1452
period beginning July 1, 2023 2014, a subsequent the office 1453
shall conduct an examination of each state financial institution 1454
in a manner that allows the preparation of a complete 1455
examination report not subject to the right of a federal or 1456
other non-Florida entity to limit access to the information 1457
contained therein. The office may furnish a copy of all 1458
examinations or reviews made of financial institutions or their 1459
affiliates to the state or federal agencies participating in the 1460
examination, investigation, or review, or as otherwise 1461
authorized under s. 655.057. 1462
(f) In coordinating an examination required under this 1463
section, if a federal agency suspends or cancels a previously 1464
scheduled examination of a state financial institution, the 1465
office has an additional 90 days to meet the examination 1466
requirement of this secti on. 1467
(4) A copy of the report of each examination must be 1468
furnished to the state financial institution entity examined and 1469
presented to the board of directors at its next regular or 1470
special meeting. Each board director shall review the report and 1471
acknowledge receipt of the report by signing and dating the 1472
prescribed signature page of the report and returning a copy of 1473
the signed page to the office. 1474
Section 36. Section 655.414, Florida Statutes, is amended 1475
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to read: 1476
655.414 Acquisition of assets; assumption of liabilities. —1477
With prior approval of the office and upon such conditions as 1478
the commission prescribes by rule, a financial institution 1479
entity may acquire 50 percent or more all or substantially all 1480
of the assets or liabilities of, or assume all or any part of 1481
the liabilities of, or a combination of assets and liabilities 1482
of, any other financial institution in accordance with the 1483
procedures and subject to the following conditions and 1484
limitations: 1485
(1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES. —1486
Percentages of assets or liabilities must be calculated based on 1487
the most recent quarterly reporting date. 1488
(2)(1) ADOPTION OF A PLAN.—The board of directors of the 1489
acquiring or assuming financial entity and the board o f 1490
directors of the transferring financial institution must adopt, 1491
by a majority vote, a plan for such acquisition, assumption, or 1492
sale on terms that are mutually agreed upon. The plan must 1493
include: 1494
(a) The names and types of financial institutions 1495
involved. 1496
(b) A statement setting forth the material terms of the 1497
proposed acquisition, assumption, or sale, including the plan 1498
for disposition of all assets and liabilities not subject to the 1499
plan. 1500
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(c) A provision for liquidation, if applicable, of the 1501
transferring financial institution upon execution of the plan, 1502
or a provision setting forth the business plan for the continued 1503
operation of each financial institution after the execution of 1504
the plan. 1505
(d) A statement that the entire transaction is subject to 1506
written approval of the office and approval of the members or 1507
stockholders of the transferring financial institution. 1508
(e) If a stock financial institution is the transferring 1509
financial institution and the proposed sale is not for cash, a 1510
clear and concise statement that dissenting stockholders of the 1511
institution are entitled to the rights set forth in s. 658.44(4) 1512
and (5). 1513
(f) The proposed effective date of the acquisition, 1514
assumption, or sale and such other information and provisions as 1515
necessary to execute the transaction or as required by the 1516
office. 1517
(3)(2) APPROVAL OF OFFICE.—Following approval by the board 1518
of directors of each participating financial institution, the 1519
plan, together with certified copies of the authorizing 1520
resolutions adopted by t he boards and a completed application 1521
with a nonrefundable filing fee, must be forwarded to the office 1522
for approval or disapproval. The office shall approve the plan 1523
of acquisition, assumption, or sale if it appears that: 1524
(a) The resulting financial enti ty or entities would have 1525
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an adequate capital structure in relation to their activities 1526
and their deposit liabilities; 1527
(b) The plan is fair to all parties; and 1528
(c) The plan is not contrary to the public interest. 1529
1530
If the office disapproves the plan, it shall state its 1531
objections and give the parties an opportunity to amend the plan 1532
to overcome such objections. 1533
(4)(3) VOTE OF MEMBERS OR STOCKHOLDERS. —If the office 1534
approves the plan, it may be submitted to the members or 1535
stockholders of the transferring financial institution at an 1536
annual meeting or at a special meeting called to consider such 1537
action. Upon a majority vote of the total number of votes 1538
eligible to be cast or, in the case of a credit union, a 1539
majority vote of the members present at the meeti ng, the plan is 1540
adopted. 1541
(5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT. — 1542
(a) If the plan is adopted by the members or stockholders 1543
of the transferring financial institution, the president or vice 1544
president and the cashier, manager, or corporate secreta ry of 1545
such institution shall submit the adopted plan to the office, 1546
together with a certified copy of the resolution of the members 1547
or stockholders approving it. 1548
(b) Upon receipt of the certified copies and evidence that 1549
the participating financial insti tutions have complied with all 1550
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applicable state and federal law and rules, the office shall 1551
certify, in writing, to the participants that the plan has been 1552
approved. 1553
(c) Notwithstanding approval of the members or 1554
stockholders or certification by the offi ce, the board of 1555
directors of the transferring financial institution may abandon 1556
such a transaction without further action or approval by the 1557
members or stockholders, subject to the rights of third parties 1558
under any contracts relating thereto. 1559
(6)(5) FEDERALLY CHARTERED OR OUT -OF-STATE INSTITUTION AS 1560
A PARTICIPANT.—If one of the participants in a transaction under 1561
this section is a federally chartered financial institution or 1562
an out-of-state financial institution, all participants must 1563
also comply with requirements imposed by federal and other state 1564
law for the acquisition, assumption, or sale and provide 1565
evidence of such compliance to the office as a condition 1566
precedent to the issuance of a certificate authorizing the 1567
transaction; however, if the purchasi ng or assuming financial 1568
institution is a federal or out -of-state state-chartered 1569
financial institution and the transferring state financial 1570
entity will be liquidated, approval of the office is not 1571
required. 1572
(7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INST ITUTION.—A 1573
mutual financial institution may not sell 50 percent or more all 1574
or substantially all of its assets to a stock financial 1575
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institution until it has first converted into a capital stock 1576
financial institution in accordance with s. 665.033(1) and (2) . 1577
For this purpose, references in s. 665.033(1) and (2) to 1578
associations also refer to credit unions but, in the case of a 1579
credit union, the provision concerning proxy statements does not 1580
apply. 1581
Section 37. Paragraph (c) of subsection (3) of section 1582
655.50, Florida Statutes, is amended to read: 1583
655.50 Florida Control of Money Laundering and Terrorist 1584
Financing in Financial Institutions Act. — 1585
(3) As used in this section, the term: 1586
(c) "Financial institution" has the same meaning as in s. 1587
655.005(1)(i), excluding an international representative office, 1588
an international administrative office, or a qualified limited 1589
service affiliate means a financial institution, as defined in 1590
31 U.S.C. s. 5312, as amended, including a credit card bank, 1591
located in this state. 1592
Section 38. Subsections (1) through (8) of section 1593
657.021, Florida Statutes, are renumbered as subsections (2) 1594
through (9), respectively, and a new subsection (1) is added to 1595
that section to read: 1596
657.021 Reports to the office; board of directors; 1597
executive committee; responsibilities; oaths .— 1598
(1) Within 30 days after an annual meeting or any other 1599
meeting at which a director, officer, member of the supervisory 1600
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or audit committee, member of the credit committee, or credit 1601
manager is elected or appointed, a credit union shall submit to 1602
the office the name and residence address of the elected or 1603
appointed person on a form prescribed by the commission and 1604
provided by the office. 1605
Section 39. Subsection (6) of section 657.028, Florida 1606
Statutes, is amended to read: 1607
657.028 Activities of directors, officers, committee 1608
members, employees, and agents. — 1609
(6) Within 30 days after election or appointment, a record 1610
of the names and addresses of the members of the board, members 1611
of committees, all o fficers of the credit union, and the credit 1612
manager shall be filed with the office on forms prescribed by 1613
the commission. 1614
Section 40. Subsections (20) through (24) of section 1615
658.12, Florida Statutes, are renumbered as subsections (21) 1616
through (25), respectively, and a new subsection (20) is added 1617
to that section to read: 1618
658.12 Definitions. —Subject to other definitions contained 1619
in the financial institutions codes and unless the context 1620
otherwise requires: 1621
(20) "Target market" means the group of cl ients or 1622
potential clients from whom: 1623
(a) A bank or proposed bank expects to draw deposits and 1624
to whom the bank or proposed bank focuses or intends to focus 1625
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its marketing efforts. 1626
(b) A trust company, a trust department of a bank or 1627
association, a proposed trust company, or a proposed trust 1628
department of a bank or association expects to draw its 1629
fiduciary accounts and to whom the trust company, the trust 1630
department of a bank or association, the proposed trust company, 1631
or the proposed trust department of a bank or association 1632
focuses or intends to focus its marketing efforts. 1633
Section 41. Paragraphs (b) and (c) of subsection (1) of 1634
section 658.20, Florida Statutes, are amended to read: 1635
658.20 Investigation by office. — 1636
(1) Upon the filing of an appl ication, the office shall 1637
make an investigation of: 1638
(b) The need for bank or trust facilities or additional 1639
bank or trust facilities, as the case may be, in the primary 1640
service area where the proposed bank or trust company is to be 1641
located or in the target market where the bank or trust company 1642
intends to engage in business . 1643
(c) The ability of the primary service area or target area 1644
to support the proposed bank or trust company and all other 1645
existing bank or trust facilities that serve the same primary 1646
service area or target market in the primary service area . 1647
Section 42. Subsections (1) and (4) of section 658.21, 1648
Florida Statutes, are amended to read: 1649
658.21 Approval of application; findings required. —The 1650
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office shall approve the application if it finds that: 1651
(1) Local and target market conditions indicate reasonable 1652
promise of successful operation for the proposed state bank or 1653
trust company. In determining whether an applicant meets the 1654
requirements of this subsection, the office shall consider all 1655
materially relevant factors, including: 1656
(a) The purpose, objectives, and business philosophy of 1657
the proposed state bank or trust company. 1658
(b) The projected financial performance of the proposed 1659
bank or trust company. 1660
(c) The feasibility of the p roposed bank or trust company, 1661
as stated in the business plan, particularly with respect to 1662
asset and liability growth and management. 1663
(4) The proposed officers have sufficient financial 1664
institution experience, ability, standing, and reputation and 1665
the proposed directors have sufficient business experience, 1666
ability, standing, and reputation to indicate reasonable promise 1667
of successful operation, and none of the proposed officers or 1668
directors has been convicted of, or pled guilty or nolo 1669
contendere to, any violation of s. 655.50, relating to the 1670
control of money laundering and terrorist financing; chapter 1671
896, relating to offenses related to financial institutions; or 1672
similar state or federal law. At least two of the proposed 1673
directors who are not also prop osed officers must have had at 1674
least 1 year of direct experience as an executive officer, 1675
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regulator, or director of a financial institution within the 5 1676
years before the date of the application. However, if the 1677
applicant demonstrates that at least one of t he proposed 1678
directors has very substantial experience as an executive 1679
officer, director, or regulator of a financial institution more 1680
than 5 years before the date of the application, the office may 1681
modify the requirement and allow the applicant to have onl y one 1682
director who has direct financial institution experience within 1683
the last 5 years. The proposed president or chief executive 1684
officer must have had at least 1 year of direct experience as an 1685
executive officer, director, or regulator of a financial 1686
institution within the last 5 years . 1687
Section 43. Subsections (2), (3), and (4) of section 1688
658.28, Florida Statutes, are renumbered as subsections (3), 1689
(4), and (5), respectively, and a new subsection (2) is added to 1690
that section to read: 1691
658.28 Acquisition of control of a bank or trust company. — 1692
(2) If a person or a group of persons, directly or 1693
indirectly, acquires a controlling interest in a state bank or 1694
state trust company, as contemplated by this section, through 1695
probate or trust, the person or gro up of persons shall notify 1696
the office within 90 days after acquiring such an interest. Such 1697
an interest does not give rise to a presumption of control until 1698
the person or group of persons votes the shares or the office 1699
has issued a certificate of approval in response to an 1700
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application pursuant to subsection (1). 1701
Section 44. Paragraphs (a), (b), and (c) of subsection 1702
(11) of section 658.2953, Florida Statutes, are redesignated as 1703
paragraphs (b), (c), and (d), respectively, and a new paragraph 1704
(a) is added to that subsection to read: 1705
658.2953 Interstate branching. — 1706
(11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS. — 1707
(a) As used in this subsection, the term "de novo branch" 1708
means a branch of a bank that is originally established by the 1709
bank as a branch and does not become a branch of such bank as a 1710
result of: 1711
1. An acquisition by the bank of a depository institution 1712
or a branch of a depository institution; or 1713
2. A conversion, merger, or consolidation of any 1714
depository institution or any branch of a depository 1715
institution. 1716
Section 45. Paragraph (d) of subsection (1) of section 1717
662.1225, Florida Statutes, is amended to read: 1718
662.1225 Requirements for a family trust company, licensed 1719
family trust company, or foreign licensed family trust company. — 1720
(1) A family trust company or a licensed family trust 1721
company shall maintain: 1722
(d) A deposit account with : 1723
1. A bank located in the United States and insured by the 1724
Federal Deposit Insurance Corporation; or 1725
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2. A credit union located in the United S tates and insured 1726
by the National Credit Union Administration a state-chartered or 1727
national financial institution that has a principal or branch 1728
office in this state . 1729
Section 46. Subsection (1) of section 662.128, Florida 1730
Statutes, is amended to read: 1731
662.128 Annual renewal. — 1732
(1) Within 45 days after the end of each calendar year, A 1733
family trust company, licensed family trust company, or foreign 1734
licensed family trust company shall file an its annual renewal 1735
application with the office within 45 days after the anniversary 1736
of the filing of either the initial application or the prior 1737
year's renewal application . 1738
Section 47. Subsection (1) of section 663.07, Florida 1739
Statutes, is amended to read: 1740
663.07 Asset maintenance or capital equivalency. — 1741
(1) Each international bank agency and international 1742
branch shall: 1743
(a) Maintain with one or more banks insured by the Federal 1744
Deposit Insurance Corporation and located within the United 1745
States in this state, in such amounts as the office specifies, 1746
evidence of dollar deposits or investment securities of the type 1747
that may be held by a state bank for its own account pursuant to 1748
s. 658.67. The aggregate amount of dollar deposits and 1749
investment securities for an international bank agency or 1750
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international branch shall, at a minimum, equal the greater of: 1751
1. Four million dollars; or 1752
2. Seven percent of the total liabilities of the 1753
international bank agency or international branch excluding 1754
accrued expenses and amounts due and other liabilities to 1755
affiliated branches, offices, agencies, or entities; or 1756
(b) Maintain other appropriate reserves, taking into 1757
consideration the nature of the business being conducted by the 1758
international bank agency or international branch. 1759
1760
The commission shall prescribe, by rule, t he deposit, 1761
safekeeping, pledge, withdrawal, recordkeeping, and other 1762
arrangements for funds and securities maintained under this 1763
subsection. The deposits and securities used to satisfy the 1764
capital equivalency requirements of this subsection shall be 1765
held, to the extent feasible, in one or more state or national 1766
banks located in this state or in a federal reserve bank. 1767
Section 48. Subsections (4), (5), and (6) of section 1768
663.532, Florida Statutes, are renumbered as subsections (5), 1769
(6), and (7), respect ively, paragraphs (i) and (j) of subsection 1770
(1) are amended, and a new subsection (4) is added to that 1771
section, to read: 1772
663.532 Qualification. — 1773
(1) To qualify as a qualified limited service affiliate 1774
under this part, a proposed qualified limited servi ce affiliate 1775
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must file a written notice with the office, in the manner and on 1776
a form prescribed by the commission. Such written notice must 1777
include: 1778
(i) A declaration under penalty of perjury signed by the 1779
executive officer, manager, or managing member o f the proposed 1780
qualified limited service affiliate that, to the best of his or 1781
her knowledge: 1782
1. No employee, representative, or agent provides, or will 1783
provide, banking services; promotes or sells, or will promote or 1784
sell, investments; or accepts, or wi ll accept, custody of 1785
assets. 1786
2. No employee, representative, or agent acts, or will 1787
act, as a fiduciary in this state, which includes, but is not 1788
limited to, accepting the fiduciary appointment, executing the 1789
fiduciary documents that create the fiduciar y relationship, or 1790
making discretionary decisions regarding the investment or 1791
distribution of fiduciary accounts. 1792
3. The jurisdiction of the international trust entity or 1793
its offices, subsidiaries, or any affiliates that are directly 1794
involved in or facil itate the financial services functions, 1795
banking, or fiduciary activities of the international trust 1796
entity is not listed on the Financial Action Task Force's list 1797
of High-Risk Jurisdictions subject to a Call for Action or list 1798
of Jurisdictions under Increa sed Monitoring Force Public 1799
Statement or on its list of jurisdictions with deficiencies in 1800
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anti-money laundering or counterterrorism . 1801
(j) For each international trust entity that the proposed 1802
qualified limited service affiliate will provide services for in 1803
this state, the following: 1804
1. The name of the international trust entity; 1805
2. A list of the current officers and directors of the 1806
international trust entity; 1807
3. Any country where the international trust entity is 1808
organized or authorized to do business; 1809
4. The name of the home -country regulator; 1810
5. Proof that the international trust entity has been 1811
authorized by charter, license, or similar authorization by its 1812
home-country regulator to engage in trust business; 1813
6. Proof that the internati onal trust entity lawfully 1814
exists and is in good standing under the laws of the 1815
jurisdiction where it is chartered, licensed, or organized; 1816
7. A statement that the international trust entity is not 1817
in bankruptcy, conservatorship, receivership, liquidatio n, or in 1818
a similar status under the laws of any country; 1819
8. Proof that the international trust entity is not 1820
operating under the direct control of the government or the 1821
regulatory or supervisory authority of the jurisdiction of its 1822
incorporation, through government intervention or any other 1823
extraordinary actions, and confirmation that it has not been in 1824
such a status or under such control at any time within the prior 1825
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3 years; 1826
9. Proof and confirmation that the proposed qualified 1827
limited service affiliat e is affiliated with the international 1828
trust entities provided in the notice; and 1829
10. Proof that the jurisdictions where the international 1830
trust entity or its offices, subsidiaries, or any affiliates 1831
that are directly involved in or that facilitate the f inancial 1832
services functions, banking, or fiduciary activities of the 1833
international trust entity are not listed on the Financial 1834
Action Task Force's list of High -Risk Jurisdictions subject to a 1835
Call for Action or list of Jurisdictions under Increased 1836
Monitoring Force Public Statement or on its list of 1837
jurisdictions with deficiencies in anti -money laundering or 1838
counterterrorism. 1839
1840
The proposed qualified limited service affiliate may provide 1841
additional information in the form of exhibits when attempting 1842
to satisfy any of the qualification requirements. All 1843
information that the proposed qualified limited service 1844
affiliate desires to present to support the written notice must 1845
be submitted with the notice. 1846
(4) The qualified limited service affiliate shall suspend 1847
the permissible activities provided in s. 663.531 relating to a 1848
specific jurisdiction if the qualified limited service affiliate 1849
becomes aware that the jurisdiction of an international trust 1850
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entity served by the qualified limited service affiliate is 1851
included on the Financial Action Task Force's list of High -Risk 1852
Jurisdictions subject to a Call for Action or list of 1853
Jurisdictions under Increased Monitoring. Suspensions under this 1854
subsection must remain in effect until the jurisdiction is 1855
removed from the Financial Action Task Force's list of High -Risk 1856
Jurisdictions subject to a Call for Action or list of 1857
Jurisdictions under Increased Monitoring. 1858
Section 49. Paragraph (a) of subsection (5) of section 1859
736.0802, Florida Statutes, is amended to read: 1860
736.0802 Duty of loyalty. — 1861
(5)(a) An investment by a trustee authorized by lawful 1862
authority to engage in trust business, as defined in s. 658.12 1863
s. 658.12(20), in investment instruments, as defined in s. 1864
660.25(6), that are owned or controlled by the trustee or its 1865
affiliate, or from which the trustee or its affiliate receives 1866
compensation for providing services in a capacity other than as 1867
trustee, is not presumed to be affected by a conflict between 1868
personal and fiduciary interests provided the investment 1869
otherwise complies with chapters 518 and 660 and the trustee 1870
complies with the requirements of this subsection. 1871
Section 50. For the 2022-2023 fiscal year, the sums of 1872
$466,959 in recurring funds and $350,832 in nonrecurring funds 1873
are appropriated from th e Administrative Trust Fund to the 1874
Office of Financial Regulation to implement s. 20.121(3)(a), 1875
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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
Florida Statutes, as amended by this act. 1876
Section 51. This act shall take effect October 1, 2022. 1877