HB 0577 2003
1	A bill to be entitled
2	An act relating to financial services; revising provisions
3	relating to mortgage brokerage and mortgage lending;
4	amending s. 494.0029, F.S.; specifying nontransferability
5	of certain permits; providing requirements for changes in
6	certain ownerships or controlling interests; providing for
7	cancellation and reinstatement of certain permits;
8	amending s. 494.00295, F.S.; clarifying certain
9	professional education provisions as continuing education;
10	amending s. 494.003, F.S.; clarifying types of financial
11	institutions eligible for exemptions from application of
12	certain provisions; amending s. 494.0031, F.S.;
13	authorizing the Department of Financial Services to
14	require information from applicants for licensure;
15	specifying nontransferability of certain licenses;
16	providing requirements for changes in certain ownerships
17	or controlling interests; amending s. 494.0032, F.S.;
18	providing for electronic filing of certain license renewal
19	forms; providing for cancellation and reinstatement of
20	certain licenses; amending s. 494.0033, F.S.; revising
21	mortgage broker licensure requirements; providing for
22	third party administration of certain tests; authorizing
23	the department to wave an examination requirement for
24	certain individuals under certain circumstances;
25	authorizing the department to assess a fee; amending s.
26	494.0034, F.S.; providing for electronic filing of certain
27	license renewal forms; providing for cancellation and
28	reinstatement of certain licenses; amending s. 494.0036,
29	F.S.; clarifying a provision for issuance of a mortgage
30	brokerage business branch office license; amending s.
31	494.006, F.S.; clarifying types of financial institutions
32	eligible for exemptions from application of certain
33	provisions; amending s. 494.0061, F.S.; clarifying
34	application of certain accounting principles; providing
35	requirements for changes in certain ownerships or
36	controlling interests; providing for third party
37	administration of certain tests; authorizing the
38	department to wave an examination requirement for certain
39	individuals under certain circumstances; authorizing the
40	department to assess a fee; amending s. 494.0062, F.S.;
41	authorizing the department to require information from
42	applicants for licensure; clarifying application of
43	certain accounting principles; providing requirements for
44	changes in certain ownerships or controlling interests;
45	providing for third party administration of certain tests;
46	authorizing the department to wave an examination
47	requirement for certain individuals under certain
48	circumstances; authorizing the department to assess a fee;
49	amending s. 494.0064, F.S.; providing for electronic
50	filing of certain license renewal forms; clarifying
51	certain professional education provisions as continuing
52	education; providing for cancellation and reinstatement of
53	certain licenses; amending s. 494.0065, F.S.; clarifying
54	application of certain accounting principles; providing
55	education and testing requirements for principal
56	representatives; authorizing the department to wave an
57	examination requirement for certain individuals under
58	certain circumstances; authorizing the department to
59	assess a fee; requiring mortgage lenders to designate a
60	principal representative for certain purposes; requiring
61	department notification of designation and education of
62	principal representatives; providing for cancellation and
63	reinstatement of certain licenses; amending s. 494.0066,
64	F.S.; providing for cancellation and reinstatement of
65	certain licenses; amending s. 494.0067, F.S.; clarifying
66	certain professional education provisions as continuing
67	education; amending ss. 494.0016, 516.12, 520.997, and
68	537.009, F.S.; revising the department’s authority to
69	regulate certain licensees; authorizing the department to
70	provide by rule requirements for destruction of certain
71	information; clarifying department authority to prescribe
72	by rule certain minimum information to be shown in certain
73	documents; amending s. 517.12, F.S.; specifying an
74	additional depository for certain fees and documents
75	required for registration of certain securities licensees;
76	providing an effective date.
77
78	Be It Enacted by the Legislature of the State of Florida:
79
80	Section 1. Subsection (1) of section 494.0029, Florida
81	Statutes, is amended, and subsections (4) and (5) are added to
82	said section, to read:
83	494.0029 Mortgage business schools.--
84	(1) Each person, school, or institution, except accredited
85	colleges, universities, community colleges, and area technical
86	centers in this state, which offers or conducts mortgage
87	business training as a condition precedent to licensure as a
88	mortgage broker, mortgageor lender, or acorrespondent mortgage
89	lender shall obtain a permit from the department and abide by
90	the regulations imposed upon such person, school, or institution
91	by this chapter and rules adopted pursuant to this chapter. The
92	department shall, by rule, recertify the permits annually with
93	initial and renewal permit fees that do not exceed $500 plus the
94	cost of accreditation.
95	(4) A permit issued under this section is not transferable
96	or assignable. Any person who, directly or indirectly, seeks to
97	own, control, or hold with power to vote, or holds proxies
98	representing 50 percent or greater of any class of equity
99	securities or ultimate equitable ownership of a mortgage
100	business school, shall file a new application for and be
101	approved for licensure prior to the effective date of the change
102	in ownership or controlling interest.
103	(5) If an initial mortgage business school permit or
104	renewal permit has been issued but the check upon which the
105	license is based is returned for any reason, the permit shall be
106	deemed canceled. A permit deemed canceled pursuant to this
107	subsection shall be reinstated if the department receives a
108	certified check for the appropriate amount within 30 days after
109	the date the check was returned.
110	Section 2. Section 494.00295, Florida Statutes, is amended
111	to read:
112	494.00295 Professional continuingeducation.--
113	(1) Each mortgage broker, mortgage lender, and
114	correspondent mortgage lender must certify to the department at
115	the time of renewal that during the 2 years prior to an
116	application for license renewal, all mortgage brokers and the
117	principal representative and, loan originators, and associates
118	of a mortgage lender or correspondent mortgage lender have
119	successfully completed at least 14 hours of professional
120	continuingeducation programs covering primary and subordinate
121	mortgage financing transactions and the provisions of this
122	chapter. Licensees shall maintain records documenting compliance
123	with this subsection for a period of 4 years.
124	(2) Professional continuingeducation programs must
125	contribute directly to the professional competency of the
126	participants, may only be offered by permitted mortgage business
127	schools or entities specifically exempted from permitting as
128	mortgage business schools, and may include electronically
129	transmitted or distance education courses.
130	(3) The department shall adopt rules necessary to
131	administer this section, including rules governing qualifying
132	hours for professional continuingeducation programs and
133	standards for electronically transmitted or distance education
134	courses, including course completion requirements.
135	Section 3. Paragraphs (b) and (c) of subsection (1) and
136	paragraph (e) of subsection (2) of section 494.003, Florida
137	Statutes, are amended to read:
138	494.003 Exemptions.--
139	(1) None of the following persons is subject to the
140	requirements of ss. 494.003-494.0043:
141	(b) A state or federal chartered bank, registeredbank
142	holding company, trust company, savings and loan association,
143	savings bank, credit union, or consumer finance company licensed
144	pursuant to chapter 516.
145	(c) A wholly owned registeredbank holding company
146	subsidiary or a wholly owned registeredsavings and loan
147	association holding company subsidiary that is approved or
148	certified by the Department of Housing and Urban Development,
149	the Veterans Administration, the Government National Mortgage
150	Association, the Federal National Mortgage Association, or the
151	Federal Home Loan Mortgage Corporation.
152	(2) None of the following persons is required to be
153	licensed under ss. 494.003-494.0043:
154	(e) A wholly owned subsidiary of a state or federal
155	charteredbank or savings and loan association the sole activity
156	of which is to distribute the lending programs of such state or
157	federal charteredbank or savings and loan association to
158	persons who arrange loans for, or make loans to, borrowers.
159	Section 4. Subsections (1), (3), and (5) of section
160	494.0031, Florida Statutes, are amended, and subsection (6) is
161	added to said section, to read:
162	494.0031 Licensure as a mortgage brokerage business.--
163	(1) The department may require each applicant for a
164	mortgage lender license to provide any information reasonably
165	necessary to make a determination of the applicant’s eligibility
166	for licensure.The department shall issue a mortgage brokerage
167	business license to each person who:
168	(a) Has submitted a completed application form and a
169	nonrefundable application fee of $425; and
170	(b) Has a qualified principal broker pursuant to s.
171	494.0035.
172	(3) Notwithstanding the provisions of subsection (1), it
173	is a ground for denial of licensure if the designated principal
174	mortgage broker; any officer, director, partner, or joint
175	venturer; any natural person owning a 10-percent or greater
176	interest in the mortgage brokerage business;or any natural
177	person who is the ultimate equitable owner of a 10-percent or
178	greater interest in the mortgage brokerage business has
179	committed any violation specified in ss. 494.001-494.0077 or has
180	pending against him or her any criminal prosecution or
181	administrative enforcement action, in any jurisdiction, which
182	involves fraud, dishonest dealing, or any other act of moral
183	turpitude.
184	(5) If an initial mortgage brokerage business or branch
185	office license has been issued but the check upon which the
186	license is based is returned for any reasondue to insufficient
187	funds, the license shall be deemed canceled. A license deemed
188	canceled pursuant to this subsection shall be reinstated if the
189	department receives a certified check for the appropriate amount
190	within 30 days after the date the check was returned due to
191	insufficient funds.
192	(6) A license issued under ss. 494.003-494.0043 is not
193	transferable or assignable. Any person or persons who, directly
194	or indirectly, seeks to own, control, or hold with power to
195	vote, or holds proxies representing 50 percent or greater of any
196	class of equity securities or ultimate equitable ownership of a
197	mortgage brokerage business, shall file a new application for
198	and be approved for licensure prior to the effective date of the
199	change in ownership or controlling interest.
200	Section 5. Subsections (1) and (2) of section 494.0032,
201	Florida Statutes, are amended, and subsection (4) is added to
202	said section, to read:
203	494.0032 Renewal of mortgage brokerage business license or
204	branch office license.--
205	(1) The department shall renew a mortgage brokerage
206	business license upon receipt of an electronically fileda
207	completed renewal form and payment of a nonrefundable renewal
208	fee of $375. Each licensee shall pay at the time of renewal a
209	nonrefundable renewal fee of $225 for the renewal of each branch
210	office license.
211	(2) The department shall adopt rules establishing a
212	procedure for the biennial renewal of mortgage brokerage
213	business licenses and branch office licenses. The department may
214	prescribe the electronic formatformfor renewal and may require
215	an update of all information provided in the licensee's initial
216	application.
217	(4) If the renewal of a mortgage brokerage business or
218	branch office license has been issued but the check upon which
219	the license is based is returned for any reason, the license
220	shall be deemed canceled. A license deemed canceled pursuant to
221	this subsection shall be reinstated if the department receives a
222	certified check for the appropriate amount within 30 days after
223	the date the check was returned.
224	Section 6. Subsection (1), paragraphs (b) and (c) of
225	subsection (2), and subsection (7) of section 494.0033, Florida
226	Statutes, are amended to read:
227	494.0033 Mortgage broker's license.--
228	(1) Each natural person who acts as a mortgage broker for
229	a mortgage brokerage business or acts as an associate for a
230	mortgage lender or correspondent mortgage lendermust be
231	licensed pursuant to this section. To act as a mortgage broker,
232	an individual must be an associate of a mortgage brokerage
233	business, mortgage lender, or correspondent mortgage lender. A
234	mortgage broker is prohibited from being an associate of more
235	than one mortgage brokerage business, mortgage lender, or
236	correspondent mortgage lender.
237	(2) Each initial application for a mortgage broker's
238	license must be in the form prescribed by rule of the
239	department. The department may require each applicant to provide
240	any information reasonably necessary to make a determination of
241	the applicant's eligibility for licensure. The department shall
242	issue an initial license to any natural person who:
243	(b) Has passed a written test, adopted by the department
244	and administered by a third party approved by the department,
245	which is designed to determine competency in primary and
246	subordinate mortgage financing transactions as well as to test
247	knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
248	thereto. The department may waive by rule the examination
249	requirement for any individual who has passed a comparable test
250	offered by a national group of state mortgage regulators or a
251	federal governmental agency that covers primary and subordinate
252	mortgage financing transactions;
253	(c) Has submitted a completed application and a
254	nonrefundable application fee of $200. The department may set by
255	rule an additional fee for takinga retake of the examination
256	and any retakes required; and
257	(7) If an initial mortgage broker license has been issued
258	but the check upon which the license is based is returned for
259	any reasondue to insufficient funds, the license shall be
260	deemed canceled. A license deemed canceled pursuant to this
261	subsection shall be reinstated if the department receives a
262	certified check for the appropriate amount within 30 days after
263	the date the check was returned due to insufficient funds.
264	Section 7. Subsections (1) and (2) of section 494.0034,
265	Florida Statutes, are amended, and subsection (4) is added to
266	said section, to read:
267	494.0034 Renewal of mortgage broker's license.--
268	(1) The department shall renew a mortgage broker license
269	upon receipt of an electronically filedthecompleted renewal
270	form, certification of compliance with continuing education
271	requirements of s. 494.00295, and payment of a nonrefundable
272	renewal fee of $150.
273	(2) The department shall adopt rules establishing a
274	procedure for the biennial renewal of mortgage broker's
275	licenses. The department may prescribe the electronic format
276	form of the renewal applicationand may require an update of
277	information since the licensee's last renewal.
278	(4) If the renewal of a mortgage broker license has been
279	issued but the check upon which the license is based is returned
280	for any reason, the license shall be deemed canceled. A license
281	deemed canceled pursuant to this subsection shall be reinstated
282	if the department receives a certified check for the appropriate
283	amount within 30 days after the date the check was returned.
284	Section 8. Subsection (2) of section 494.0036, Florida
285	Statutes, is amended to read:
286	494.0036 Mortgage brokerage business branch offices.--
287	(2) The department shall issue a mortgage brokerage
288	business branch office license to any licensee, once the
289	department determines the licensee has submittedupon receipt of
290	a completed application in a form as prescribed by department
291	rule and payment of an initial nonrefundable branch office
292	license fee of $225. Branch office licenses must be renewed in
293	conjunction with the renewal of the mortgage brokerage business
294	license. The branch office license shall be issued in the name
295	of the mortgage brokerage business that maintains the branch
296	office.
297	Section 9. Paragraphs (a) and (c) of subsection (1) and
298	paragraph (a) of subsection (2) of section 494.006, Florida
299	Statutes, are amended to read:
300	494.006 Exemptions.--
301	(1) None of the following persons are subject to the
302	requirements of ss. 494.006-494.0077 in order to act as a
303	mortgage lender or correspondent mortgage lender:
304	(a) A state or federal chartered bank, registeredbank
305	holding company, trust company, savings and loan association,
306	savings bank, credit union, or insurance company if the
307	insurance company is duly licensed in this state.
308	(c) A wholly owned registeredbank holding company
309	subsidiary or a wholly owned registeredsavings and loan
310	association holding company subsidiary that is approved or
311	certified by the Department of Housing and Urban Development,
312	the Veterans Administration, the Government National Mortgage
313	Association, the Federal National Mortgage Association, or the
314	Federal Home Loan Mortgage Corporation.
315	(2)(a) A natural person employed by a mortgage lender or
316	correspondent mortgage lenderlicensed under ss. 494.001-
317	494.0077 is exempt from the licensure requirements of ss.
318	494.001-494.0077 when acting within the scope of employment with
319	the licensee.
320	Section 10. Paragraph (c) of subsection (1) and
321	subsections, (5), (7), (9), and (10) of section 494.0061,
322	Florida Statutes, are amended to read:
323	494.0061 Mortgage lender's license requirements.--
324	(1) The department may require each applicant for a
325	mortgage lender license to provide any information reasonably
326	necessary to make a determination of the applicant's eligibility
327	for licensure. The department shall issue an initial mortgage
328	lender license to any person that submits:
329	(c) Audited financial statements, which documents disclose
330	that the applicant has a bona fide and verifiable net worth,
331	pursuant to accounting principles generally accepted in the
332	United Statesaccounting principles, of at least $250,000, which
333	must be continuously maintained as a condition of licensure;
334	(5) A license issued in accordance with ss. 494.006-
335	494.0077 is not transferable or assignable. Any person or
336	persons who, directly or indirectly, seeks to own, control, or
337	hold with power to vote, or holds proxies representing 50
338	percent or greater of any class of equity securities or ultimate
339	equitable ownership of a mortgage lender, shall file a new
340	application for and be approved for licensure pursuant prior to
341	the effective date of the change in ownership or controlling
342	interest.
343	(7) If an initial mortgage lender or branch office license
344	has been issued but the check upon which the license is based is
345	returned for any reasondue to insufficient funds, the license
346	shall be deemed canceled. A license deemed canceled pursuant to
347	this subsection shall be reinstated if the department receives a
348	certified check for the appropriate amount within 30 days after
349	the date the check was returned due to insufficient funds.
350	(9) After October 1, 2001, an applicant's principal
351	representative must pass a written test,prescribed by the
352	department and administered by a third party approved by the
353	department,which covers primary and subordinate mortgage
354	financing transactions and the provisions of this chapter and
355	rules adopted under this chapter. The department may waive the
356	examination requirement for any individual who has passed a
357	comparable test offered by a national group of state mortgage
358	regulators or a federal governmental agency that covers primary
359	and subordinate mortgage financing transactions. The department
360	may set by rule a fee for taking the examination and any retakes
361	required.
362	(10) A lender shall notify the department of the name and
363	address of any new principal representative and shall document
364	that the person has completed the educational and testing
365	requirements of this section within 90 days afteruponthe
366	designation of a new principal representative.
367	Section 11. Subsections (1), (3), (8), (10), (12), and
368	(13) of section 494.0062, Florida Statutes, are amended to read:
369	494.0062 Correspondent mortgage lender's license
370	requirements.--
371	(1) The department may require each applicant for a
372	correspondent mortgage lender license to provide any information
373	reasonably necessary to make a determination of the applicant’s
374	eligibility for licensure.The department shall issue an initial
375	correspondent mortgage lender license to any person who submits:
376	(a) A completed application form;
377	(b) A nonrefundable application fee of $500;
378	(c) Audited financial statements, which document that the
379	application has a bona fide and verifiable net worth,pursuant
380	to accounting principles generally accepted in the United
381	States,accounting principlesof $25,000 or more, which must be
382	continuously maintained as a condition of licensure;
383	(d) A surety bond in the amount of $10,000, payable to the
384	State of Florida and conditioned upon compliance with ss.
385	494.001-494.0077, which inures to the department and which must
386	be continuously maintained, thereafter, in full force;
387	(e) Documentation that the applicant is duly incorporated,
388	registered, or otherwise formed as a general partnership,
389	limited partnership, limited liability company, or other lawful
390	entity under the laws of this state or another state of the
391	United States; and
392	(f) For applications filed after October 1, 2001, proof
393	that the applicant's principal representative has completed 24
394	hours of classroom instruction in primary and subordinate
395	financing transactions and in the provisions of this chapter and
396	rules enacted under this chapter.
397	(3) Each initial application for a correspondent mortgage
398	lender's license must be in a form prescribed by the department.
399	The department may require each applicant to provide any
400	information reasonably necessary to make a determination of the
401	applicant's eligibility for licensure.The department may
402	require that each officer, director, and ultimate equitable
403	owner of a 10-percent or greater interest submit a complete set
404	of fingerprints taken by an authorized law enforcement officer.
405	(8) A license issued under this section is not
406	transferable or assignable. Any person or persons who, directly
407	or indirectly, seeks to own, control, or hold with power to
408	vote, or holds proxies representing 50 percent or greater of any
409	class of equity securities or ultimate equitable ownership of a
410	correspondent mortgage lender, shall file a new application for
411	and be approved for licensure pursuant prior to the effective
412	date of the change in ownership or controlling interest.
413	(10) If an initial correspondent mortgage lender or branch
414	office license has been issued but the check upon which the
415	license is based is returned for any reasondue to insufficient
416	funds, the license shall be deemed canceled. A license deemed
417	canceled pursuant to this subsection shall be reinstated if the
418	department receives a certified check for the appropriate amount
419	within 30 days after the date the check was returned due to
420	insufficient funds.
421	(12) After October 1, 2001, an applicant's principal
422	representative must pass a written test,prescribed by the
423	department and administered by a third party approved by the
424	department,which covers primary and subordinate mortgage
425	financing transactions and the provisions of this chapter and
426	rules adopted under this chapter. The department may waive the
427	examination requirement for any individual who has passed a
428	comparable test offered by a national group of state mortgage
429	regulators or a federal governmental agency that covers primary
430	and subordinate mortgage financing transactions. The department
431	may set by rule a fee for taking the examination and any retakes
432	required.
433	(13) A correspondent lender shall notify the department of
434	the name and address of any new principal representative and
435	shall document that such person has completed the educational
436	and testing requirements of this section within 90 days after
437	uponthe lender's designation of a new principal representative.
438	Section 12. Subsections (1) and (2) of section 494.0064,
439	Florida Statutes, are amended, and subsection (5) is added to
440	said section, to read:
441	494.0064 Renewal of mortgage lender's license; branch
442	office license renewal.--
443	(1)(a) The department shall renew a mortgage lender
444	license upon receipt of an electronically fileda completed
445	renewal form and the nonrefundable renewal fee of $575. The
446	department shall renew a correspondent lender license upon
447	receipt of an electronically fileda completed renewal form and
448	a nonrefundable renewal fee of $475. Each licensee shall pay at
449	the time of renewal a nonrefundable fee of $325 for the renewal
450	of each branch office license.
451	(b) A licensee shall also submit, as part of the renewal
452	form, certification that during the preceding 2 years the
453	licensee's principal representative and, loan originators, and
454	associates have completed the professional continuingeducation
455	requirements of s. 494.00295.
456	(2) The department shall adopt rules establishing a
457	procedure for the biennial renewal of mortgage lender's
458	licenses, correspondent lender's licenses, and branch office
459	permits. The department may prescribe the electronic formatform
460	for renewal and may require an update of all information
461	provided in the licensee's initial application.
462	(5) If the renewal of a mortgage lender, correspondent
463	mortgage lender, or branch office license has been issued but
464	the check upon which the license is based is returned for any
465	reason, the license shall be deemed canceled. A license deemed
466	canceled pursuant to this subsection shall be reinstated if the
467	department receives a certified check for the appropriate amount
468	within 30 days after the date the check was returned.
469	Section 13. Subsections (2) and (5) of section 494.0065,
470	Florida Statutes, are amended, paragraphs (c) and (d) are added
471	to subsection (4) of said section, and subsections (9), (10),
472	and (11) are added to said section, to read:
473	494.0065 Saving clause.--
474	(2) A licensee issued a license pursuant to subsection (1)
475	may renew its mortgage lending license if it documents a minimum
476	net worth of $25,000, according to accounting principles
477	generally accepted in the United Statesaccounting principles,
478	which must be continuously maintained as a condition to
479	licensure. The department shall require an audited financial
480	statement which documents such net worth.
481	(4)
482	(c) For any transfer applications filed after October 1,
483	2001, proof shall be required that the applicant's principal
484	representative has completed 24 hours of classroom instruction
485	in primary and subordinate financing transactions and in the
486	provisions of this chapter and rules adopted under this chapter.
487	(d) For any transfer applications filed after October 1,
488	2001, an applicant's principal representative must pass a
489	written test, prescribed by the department and administered by a
490	third party approved by the department, which covers primary and
491	subordinate mortgage financing transactions and the provisions
492	of this chapter and rules adopted under this chapter. The
493	department may waive the examination requirement for any
494	individual who has passed a comparable test offered by a
495	national group of state mortgage regulators or a federal
496	governmental agency that covers primary and subordinate mortgage
497	financing transactions. The department may set by rule a fee for
498	taking the examination and any retakes required.
499	(5) The department may require each applicant for any
500	transfer to provide any information reasonably necessary to make
501	a determination of the applicant's eligibility for licensure.
502	The department shall issue the transfer of licensure to any
503	person who submits the following documentation at least 90 days
504	prior to the anticipated transfer:
505	(a) A completed application form.
506	(b) A nonrefundable fee set by rule of the department in
507	the amount of $575$500.
508	(c) Audited financial statements that substantiate that
509	the applicant has a bona fide and verifiable net worth,
510	according to accounting principles generally accepted in the
511	United Statesaccounting principles, of at least $25,000, which
512	must be continuously maintained as a condition of licensure.
513	(d) Documentation that the applicant is incorporated,
514	registered, or otherwise formed as a general partnership,
515	limited partnership, limited liability company, or other lawful
516	entity under the laws of this state or another state of the
517	United States.
518	(e) For applications filed after October 1, 2001, proof
519	that the applicant's principal representative has completed 24
520	hours of classroom instruction in primary and subordinate
521	financing transactions and in the provisions of this chapter and
522	rules adopted under this chapter.
523	(f) For applications filed after October 1, 2001, proof
524	that the applicant's principal representative has passed a
525	written test, prescribed by the department and administered by a
526	third party approved by the department, which covers primary and
527	subordinate mortgage financing transactions and the provisions
528	of this chapter and rules adopted under this chapter. The
529	department may waive the examination requirement for any
530	individual who has passed a comparable test offered by a
531	national group of state mortgage regulators or a federal
532	governmental agency that covers primary and subordinate mortgage
533	financing transactions. The department may set by rule a fee for
534	taking the examination and any retakes required.
535
536	The department may require that each officer, director, and
537	ultimate equitable owner of a 10-percent or greater interest in
538	the applicant submit a complete set of fingerprints taken by an
539	authorized law enforcement officer.
540	(9) Each mortgage lender shall designate a principal
541	representative who exercises control over the business and shall
542	maintain a form prescribed by the department designating the
543	principal representative. If the form is not accurately
544	maintained, the business is considered to be operated by each
545	officer, director, or equitable owner of a 10-percent or greater
546	interest in the business.
547	(10) A lender shall notify the department of the name and
548	address of any new principal representative and shall document
549	that the person has completed the educational and testing
550	requirements of this section within 90 days after the
551	designation of a new principal representative.
552	(11) If a change of control license, branch office
553	license, or lender or branch office renewal license has been
554	issued but the check upon which the license is based is returned
555	for any reason, the license shall be deemed canceled. A license
556	deemed canceled pursuant to this subsection shall be reinstated
557	if the department receives a certified check for the appropriate
558	amount within 30 days after the date the check was returned.
559	Section 14. Section 494.0066, Florida Statutes, is amended
560	to read:
561	494.0066 Branch offices.--
562	(1) A branch office license is required for each branch
563	office maintained by a licensee under ss. 494.006-494.0077.
564	(2) The department shall issue a branch office license to
565	any licensee, once the department determines the licensee has
566	submittedupon receipt ofa completed application form as
567	prescribed by rule by the department and an initial
568	nonrefundable branch office license fee of $325. The branch
569	office application must include the name and license number of
570	the licensee under ss. 494.006-494.0077, the name of the
571	licensee's employee in charge of the branch office, and the
572	address of the branch office. The branch office license shall be
573	issued in the name of the licensee under ss. 494.006-494.0077
574	and must be renewed in conjunction with the license renewal.
575	(3) If an initial branch office license has been issued
576	but the check upon which the license is based is returned for
577	any reason, the license shall be deemed canceled. A license
578	deemed canceled pursuant to this subsection shall be reinstated
579	if the department receives a certified check for the appropriate
580	amount within 30 days after the date the check was returned.
581	Section 15. Paragraph (a) of subsection (10) of section
582	494.0067, Florida Statutes, is amended to read:
583	494.0067 Requirements of licensees under ss. 494.006-
584	494.0077.--
585	(10)(a) Each licensee shall require the principal
586	representative and all loan originators or associates who
587	perform services for the licensee to complete 14 hours of
588	professional continuingeducation during each biennial license
589	period. The education shall cover primary and subordinate
590	mortgage financing transactions and the provisions of this
591	chapter and the rules adopted under this chapter.
592	Section 16. Subsection (4) of section 494.0016, Florida
593	Statutes, is amended to read:
594	494.0016 Books, accounts, and records; maintenance;
595	examinations by the department.--
596	(4) The department may prescribe by rule the minimum
597	information to be shown in the books, accounts, records, and
598	documents of licensees so that such records will enable the
599	department to determine the licensee's compliance with ss.
600	494.001-494.0077. In addition, the department may prescribe by
601	rule the requirements for destruction of books, accounts,
602	records, and documents retained by the licensee after completion
603	of the time period indicated in subsection (3).
604	Section 17. Subsection (3) is added to section 516.12,
605	Florida Statutes, to read:
606	516.12 Records to be kept by licensee.--
607	(3) The department may prescribe by rule the minimum
608	information to be shown in the books, accounts, records, and
609	documents of licensees for purposes of enabling the department
610	to determine the licensee's compliance with ss. 516.001-516.36.
611	In addition, the department may prescribe by rule the
612	requirements for destruction of books, accounts, records, and
613	documents retained by the licensee after completion of the time
614	period indicated in subsection (1).
615	Section 18. Subsection (4) of section 520.997, Florida
616	Statutes, is amended to read:
617	520.997 Books, accounts, and records.--
618	(4) The department is hereby authorized and empowered to
619	prescribe by rulethe minimum information to be shown in the
620	books, accounts, and records, and documentsof licensees so that
621	such records will enable the department to determine compliance
622	with the provisions of this chapter. In addition, the department
623	may prescribe by rule the requirements for destruction of books,
624	accounts, records, and documents retained by the licensee after
625	completion of the time period indicated in subsection (3).
626	Section 19. Subsection (5) of section 537.009, Florida
627	Statutes, is amended to read:
628	537.009 Recordkeeping; reporting; safekeeping of
629	property.--
630	(5) The department may prescribe by rule the books,
631	accounts, and records, and documents, andthe minimum
632	information to be shown in the books, accounts, and records, and
633	documents,of licensees so that such records will enable the
634	department to determine compliance with the provisions of this
635	act. In addition, the department may prescribe by rule the
636	requirements for destruction of books, accounts, records, and
637	documents retained by the licensee after completion of the time
638	period indicated in subsection (3).
639	Section 20. Subsection (15) of section 517.12, Florida
640	Statutes, is amended to read:
641	517.12 Registration of dealers, associated persons,
642	investment advisers, and branch offices.--
643	(15) In lieu of filing with the department the
644	applications specified in subsection (6), the fees required by
645	subsection (10), and the termination notices required by
646	subsection (12), the department may by rule establish procedures
647	for the deposit of such fees and documents with the Central
648	Registration Depository or the Investment Adviser Registration
649	Depositoryof the National Association of Securities Dealers,
650	Inc., as developed under contract with the North American
651	Securities Administrators Association, Inc.; provided, however,
652	that such procedures shall provide the department with the
653	information and data as required by this section.
654	Section 21. This act shall take effect upon becoming a
655	law.