Florida Senate - 2023 CS for SB 532 By the Committee on Banking and Insurance; and Senator Burton 597-02623-23 2023532c1 1 A bill to be entitled 2 An act relating to money services businesses; amending 3 s. 560.103, F.S.; revising the definition of the term 4 control person for purposes of ch. 560, F.S.; 5 defining terms; providing an effective date. 6 7 Be It Enacted by the Legislature of the State of Florida: 8 9 Section 1.Subsection (10) of section 560.103, Florida 10 Statutes, is amended to read: 11 560.103Definitions.As used in this chapter, the term: 12 (10)Control person means, with respect to a money 13 services business, any of the following: 14 (a)A person who holds the title of president, treasurer, 15 chief executive officer, chief financial officer, chief 16 operations officer, chief legal officer, or compliance officer 17 for a money services business. 18 (b)A person who holds any of the officer, general partner, 19 manager, or managing member positions named in the money 20 services businesss governing documents. As used in this 21 paragraph, the term governing documents includes bylaws, 22 articles of incorporation or organization, partnership 23 agreements, shareholder agreements, and management or operating 24 agreements. 25 (c)A person who holds any position named by the money 26 services businesss liability insurance coverage for directors 27 and officers, if the business has such coverage. 28 (d)A director of the money services businesss board of 29 directors. 30 (e)A person who directs the affairs of a money services 31 business or who participates in, or has authority to participate 32 in, the major policymaking functions of a money services 33 business, regardless of whether the person has an official title 34 or receives a salary or other compensation. 35 (d)(f)A shareholder whose name shares are registered in 36 the records of a corporation for profit, whether incorporated 37 under the laws of this state or organized under the laws of any 38 other jurisdiction and existing in that legal form, who owns 25 39 percent or more of a class of the companys equity securities 40 For a money services business that is a corporation, all 41 shareholders that, directly or indirectly, own 25 percent or 42 more or that have the power to vote 25 percent or more of a 43 class of voting securities. 44 (e)(g)A general partner or a limited partner, as those 45 terms are defined in s. 620.1102, or a special partner who has a 46 25 percent or greater transferable interest, as defined in s. 47 620.1102, of a limited partnership, limited liability limited 48 partnership, foreign limited partnership, or foreign limited 49 liability limited partnership, as those terms are defined in s. 50 620.1102. For purposes of this paragraph, a special partner has 51 the same meaning as a person that has rights, powers, and 52 obligations similar to those of a limited partner, as defined in 53 s. 620.1102, in a limited partnership For a money services 54 business that is a partnership, all general partners, and those 55 limited or special partners that have contributed 25 percent or 56 more or that have the right to receive upon dissolution 25 57 percent or more of the partnerships capital. 58 (f)(h)A member, as defined in s. 605.0102, who holds a 25 59 percent or greater membership interest in a limited liability 60 company or a foreign limited liability company, as those terms 61 are defined in s. 605.0102. As used in this subsection, the term 62 membership interest means a members right to receive 63 distributions or other rights, such as voting rights or 64 management rights, under the articles of organization For a 65 money services business that is a limited liability company, all 66 managers, and those members that have contributed 25 percent or 67 more or that have the right to receive upon dissolution 25 68 percent or more of the limited liability companys capital. 69 (g)A beneficial owner of any legal entity referred to in 70 paragraphs (d)-(f). As used in this paragraph, the term 71 beneficial owner means each individual, if any, who, directly 72 or indirectly, through any contract, arrangement, understanding, 73 or relationship other than a revocable proxy, owns 25 percent or 74 more of the shares or stock interest, transferable interest as 75 defined in s. 620.1102, or membership interest of a legal 76 entity. 77 Section 2.This act shall take effect July 1, 2023.