Bill Text: FL S0644 | 2013 | Regular Session | Comm Sub


Bill Title: Licensure by the Office of Financial Regulation

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 665 (Ch. 2013-201) [S0644 Detail]

Download: Florida-2013-S0644-Comm_Sub.html
       Florida Senate - 2013                              CS for SB 644
       
       
       
       By the Committee on Banking and Insurance; and Senator Richter
       
       
       
       
       597-02827-13                                           2013644c1
    1                        A bill to be entitled                      
    2         An act relating to licensure by the Office of
    3         Financial Regulation; amending s. 494.00321, F.S.;
    4         authorizing, rather than requiring, the office to deny
    5         a mortgage broker license application if the applicant
    6         had a mortgage broker license revoked previously;
    7         amending s. 494.00611, F.S.; authorizing, rather than
    8         requiring, the office to deny a mortgage lender
    9         license application if the applicant had a mortgage
   10         lender license revoked previously; amending s. 517.12,
   11         F.S.; revising the procedures and requirements for
   12         submitting fingerprints as part of an application to
   13         sell, or offer to sell, securities; removing
   14         conflicting language; amending s. 560.141, F.S.;
   15         revising the procedures and requirements for
   16         submitting fingerprints to apply for a license as a
   17         money services business; requiring the Office of
   18         Financial Regulation to pay an annual fee to the
   19         Department of Law Enforcement; removing conflicting
   20         language; amending s. 560.143, F.S.; revising license
   21         application fees to include fingerprint retention fees
   22         as prescribed by rule; providing effective dates.
   23  
   24  Be It Enacted by the Legislature of the State of Florida:
   25  
   26         Section 1. Effective upon this act becoming a law,
   27  subsection (5) of section 494.00321, Florida Statutes, is
   28  amended to read:
   29         494.00321 Mortgage broker license.—
   30         (5) The office may shall deny a license if the applicant
   31  has had a mortgage broker license, or its equivalent, revoked in
   32  any jurisdiction, and shall deny a license or if any of the
   33  applicant’s control persons has had a loan originator license,
   34  or its equivalent, revoked in any jurisdiction.
   35         Section 2. Effective upon this act becoming a law,
   36  subsection (5) of section 494.00611, Florida Statutes, is
   37  amended to read:
   38         494.00611 Mortgage lender license.—
   39         (5) The office may deny not issue a license if the
   40  applicant has had a mortgage lender license or its equivalent
   41  revoked in any jurisdiction, and shall deny a license if or any
   42  of the applicant’s control persons has ever had a loan
   43  originator license or its equivalent revoked in any
   44  jurisdiction.
   45         Section 3. Subsection (7) of section 517.12, Florida
   46  Statutes, is amended to read:
   47         517.12 Registration of dealers, associated persons,
   48  investment advisers, and branch offices.—
   49         (7) The application must shall also contain such
   50  information as the commission or office may require about the
   51  applicant; any member, principal, or director of the applicant
   52  or any person having a similar status or performing similar
   53  functions; any person directly or indirectly controlling the
   54  applicant; or any employee of a dealer or of an investment
   55  adviser rendering investment advisory services. Each applicant
   56  and any direct owners, principals, or indirect owners that are
   57  required to be reported on Form BD or Form ADV pursuant to
   58  subsection (15) shall submit fingerprints for live-scan
   59  processing in accordance with rules adopted by the commission.
   60  The fingerprints may be submitted through a third-party vendor
   61  authorized by the Department of Law Enforcement to provide live
   62  scan fingerprinting. The costs of fingerprint processing shall
   63  be borne by the person subject to the background check. The
   64  Department of Law Enforcement shall conduct a state criminal
   65  history background check, and a federal criminal history
   66  background check must be conducted through the Federal Bureau of
   67  Investigation. The office shall review the results of the state
   68  and federal criminal history background checks and determine
   69  whether the applicant meets licensure requirements file a
   70  complete set of fingerprints. A fingerprint card submitted to
   71  the office must be taken by an authorized law enforcement agency
   72  or in a manner approved by the commission by rule. The office
   73  shall submit the fingerprints to the Department of Law
   74  Enforcement for state processing, and the Department of Law
   75  Enforcement shall forward the fingerprints to the Federal Bureau
   76  of Investigation for federal processing. The cost of the
   77  fingerprint processing may be borne by the office, the employer,
   78  or the person subject to the background check. The Department of
   79  Law Enforcement shall submit an invoice to the office for the
   80  fingerprints received each month. The office shall screen the
   81  background results to determine if the applicant meets licensure
   82  requirements. The commission may waive, by rule, the requirement
   83  that applicants, including any direct owners, principals, or
   84  indirect owners that are required to be reported on Form BD or
   85  Form ADV pursuant to subsection (15), submit file a set of
   86  fingerprints or the requirement that such fingerprints be
   87  processed by the Department of Law Enforcement or the Federal
   88  Bureau of Investigation. The commission or office may require
   89  information about any such applicant or person concerning such
   90  matters as:
   91         (a) His or her full name, and any other names by which he
   92  or she may have been known, and his or her age, social security
   93  number, photograph, qualifications, and educational and business
   94  history.
   95         (b) Any injunction or administrative order by a state or
   96  federal agency, national securities exchange, or national
   97  securities association involving a security or any aspect of the
   98  securities business and any injunction or administrative order
   99  by a state or federal agency regulating banking, insurance,
  100  finance, or small loan companies, real estate, mortgage brokers,
  101  or other related or similar industries, which injunctions or
  102  administrative orders relate to such person.
  103         (c) His or her conviction of, or plea of nolo contendere
  104  to, a criminal offense or his or her commission of any acts
  105  which would be grounds for refusal of an application under s.
  106  517.161.
  107         (d) The names and addresses of other persons of whom the
  108  office may inquire as to his or her character, reputation, and
  109  financial responsibility.
  110         Section 4. Subsection (1) of section 560.141, Florida
  111  Statutes, is amended to read:
  112         560.141 License application.—
  113         (1) To apply for a license as a money services business
  114  under this chapter, the applicant must submit:
  115         (a) Submit An application to the office on forms prescribed
  116  by rule which includes the following information:
  117         1. The legal name and address of the applicant, including
  118  any fictitious or trade names used by the applicant in the
  119  conduct of its business.
  120         2. The date of the applicant’s formation and the state in
  121  which the applicant was formed, if applicable.
  122         3. The name, social security number, alien identification
  123  or taxpayer identification number, business and residence
  124  addresses, and employment history for the past 5 years for each
  125  officer, director, responsible person, the compliance officer,
  126  each controlling shareholder, and any other person who has a
  127  controlling interest in the money services business as provided
  128  in s. 560.127.
  129         4. A description of the organizational structure of the
  130  applicant, including the identity of any parent or subsidiary of
  131  the applicant, and the disclosure of whether any parent or
  132  subsidiary is publicly traded.
  133         5. The applicant’s history of operations in other states if
  134  applicable and a description of the money services business or
  135  deferred presentment provider activities proposed to be
  136  conducted by the applicant in this state.
  137         6. If the applicant or its parent is a publicly traded
  138  company, copies of all filings made by the applicant with the
  139  United States Securities and Exchange Commission, or with a
  140  similar regulator in a country other than the United States,
  141  within the preceding year.
  142         7. The location at which the applicant proposes to
  143  establish its principal place of business and any other
  144  location, including branch offices and authorized vendors
  145  operating in this state. For each branch office and each
  146  location of an authorized vendor, the applicant shall include
  147  the nonrefundable fee required by s. 560.143.
  148         8. The name and address of the clearing financial
  149  institution or financial institutions through which the
  150  applicant’s payment instruments are drawn or through which the
  151  payment instruments are payable.
  152         9. The history of the applicant’s material litigation,
  153  criminal convictions, pleas of nolo contendere, and cases of
  154  adjudication withheld.
  155         10. The history of material litigation, arrests, criminal
  156  convictions, pleas of nolo contendere, and cases of adjudication
  157  withheld for each executive officer, director, controlling
  158  shareholder, and responsible person.
  159         11. The name of the registered agent in this state for
  160  service of process unless the applicant is a sole proprietor.
  161         12. Any other information specified in this chapter or by
  162  rule.
  163         (b) In addition to the application form, submit:
  164         1. A nonrefundable application fee as provided in s.
  165  560.143.
  166         (c)2.Fingerprints for each person listed in subparagraph
  167  (a)3. for live-scan processing in accordance with rules adopted
  168  by the commission.
  169         1. The fingerprints may be submitted through a third-party
  170  vendor authorized by the Department of Law Enforcement to
  171  provide live-scan fingerprinting.
  172         2. The Department of Law Enforcement must conduct the state
  173  criminal history background check, and a federal criminal
  174  history background check must be conducted through the Federal
  175  Bureau of Investigation.
  176         3. All fingerprints submitted to the Department of Law
  177  Enforcement must be submitted electronically and entered into
  178  the statewide automated fingerprint identification system
  179  established in s. 943.05(2)(b) and available for use in
  180  accordance with s. 943.05(2)(g) and (h). The office shall pay an
  181  annual fee to the Department of Law Enforcement to participate
  182  in the system and shall inform the Department of Law Enforcement
  183  of any person whose fingerprints no longer must be retained.
  184         4. The costs of fingerprint processing, including the cost
  185  of retaining the fingerprints, shall be borne by the person
  186  subject to the background check.
  187         5. The office shall review the results of the state and
  188  federal criminal history background checks and determine whether
  189  the applicant meets licensure requirements.
  190         6. For purposes of this paragraph, fingerprints are not
  191  required to be submitted if A fingerprint card for each of the
  192  persons listed in subparagraph (a)3. unless the applicant is a
  193  publicly traded corporation, or is exempted from this chapter
  194  under s. 560.104(1). The fingerprints must be taken by an
  195  authorized law enforcement agency. The office shall submit the
  196  fingerprints to the Department of Law Enforcement for state
  197  processing, and the Department of Law Enforcement shall forward
  198  the fingerprints to the Federal Bureau of Investigation for
  199  federal processing. The cost of the fingerprint processing may
  200  be borne by the office, the employer, or the person subject to
  201  the criminal records background check. The office shall screen
  202  the background results to determine if the applicant meets
  203  licensure requirements. As used in this section, The term
  204  “publicly traded” means a stock is currently traded on a
  205  national securities exchange registered with the federal
  206  Securities and Exchange Commission or traded on an exchange in a
  207  country other than the United States regulated by a regulator
  208  equivalent to the Securities and Exchange Commission and the
  209  disclosure and reporting requirements of such regulator are
  210  substantially similar to those of the commission.
  211         7. Licensees initially approved before October 1, 2013,
  212  seeking renewal must submit fingerprints for each person listed
  213  in subparagraph (a)3. for live-scan processing pursuant to this
  214  paragraph. Such fingerprints must be submitted before the office
  215  may renew licenses set to expire between April 30, 2014, and
  216  December 31, 2015.
  217         (d)3. A copy of the applicant’s written anti-money
  218  laundering program required under 31 C.F.R. s. 103.125.
  219         (e)4. Within the time allotted by rule, any information
  220  needed to resolve any deficiencies found in the application.
  221         Section 5. Subsections (1) and (2) of section 560.143,
  222  Florida Statutes, are amended to read
  223         560.143 Fees.—
  224         (1) LICENSE APPLICATION FEES.—The applicable non-refundable
  225  fees must accompany an application for licensure:
  226         (a) Part II.........................................$375.
  227         (b) Part III........................................$188.
  228         (c) Per branch office................................$38.
  229         (d) For each location of an authorized
  230  vendor......................................................$38.
  231         (e) Declaration as a deferred presentment
  232  provider.................................................$1,000.
  233         (f) Fingerprint retention fees as prescribed by rule.
  234         (g) License application fees for branch offices and
  235  authorized vendors are limited to $20,000 when such fees are
  236  assessed as a result of a change in controlling interest as
  237  defined in s. 560.127.
  238         (2) LICENSE RENEWAL FEES.—The applicable non-refundable
  239  license renewal fees must accompany a renewal of licensure:
  240         (a) Part II.........................................$750.
  241         (b) Part III........................................$375.
  242         (c) Per branch office................................$38.
  243         (d) For each location of an authorized
  244  vendor......................................................$38.
  245         (e) Declaration as a deferred presentment
  246  provider.................................................$1,000.
  247         (f) Renewal fees for branch offices and authorized vendors
  248  are limited to $20,000 biennially.
  249         (g) Fingerprint retention fees as prescribed by rule.
  250         Section 6. Except as otherwise expressly provided in this
  251  act and except for this section, which shall take effect upon
  252  this act becoming a law, this act shall take effect October 1,
  253  2013.

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