Florida Senate - 2016 CS for SB 626 By the Committee on Banking and Insurance; and Senator Gaetz 597-01293-16 2016626c1 1 A bill to be entitled 2 An act relating to consumer credit; amending s. 3 516.07, F.S.; authorizing the Office of Financial 4 Regulation to deny a license or take disciplinary 5 action against a person who violates the Military 6 Lending Act or the regulations adopted under that act 7 in connection with a consumer finance loan under the 8 Florida Consumer Finance Act; amending s. 537.013, 9 F.S.; prohibiting a title loan lender or its agent or 10 employee from violating the Military Lending Act or 11 the regulations adopted under that act; amending s. 12 560.114, F.S.; authorizing the office to take 13 disciplinary action or deny a license of a money 14 services business, authorized vendor, or affiliated 15 party in connection with a deferred presentment 16 transaction for violating the Military Lending Act or 17 the regulations adopted under that act; creating s. 18 655.035, F.S.; authorizing the office to conduct an 19 investigation to determine whether a person is 20 violating the Military Lending Act or the regulations 21 adopted under that act; authorizing the office to seek 22 specified remedies for such violations; providing 23 applicability; providing an effective date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27 Section 1. Paragraph (q) is added to subsection (1) of 28 section 516.07, Florida Statutes, to read: 29 516.07 Grounds for denial of license or for disciplinary 30 action.— 31 (1) The following acts are violations of this chapter and 32 constitute grounds for denial of an application for a license to 33 make consumer finance loans and grounds for any of the 34 disciplinary actions specified in subsection (2): 35 (q) Violating any provision of the Military Lending Act, 10 36 U.S.C. s. 987, or the regulations adopted under that act in 32 37 C.F.R. part 232, in connection with a consumer finance loan made 38 under this chapter. 39 Section 2. Paragraph (o) is added to subsection (1) of 40 section 537.013, Florida Statutes, to read: 41 537.013 Prohibited acts.— 42 (1) A title loan lender, or any agent or employee of a 43 title loan lender, shall not: 44 (o) Violate any provision of the Military Lending Act, 10 45 U.S.C. s. 987, or the regulations adopted under that act in 32 46 C.F.R. part 232, in connection with a title loan made under this 47 chapter. 48 Section 3. Paragraph (cc) is added to subsection (1) of 49 section 560.114, Florida Statutes, to read: 50 560.114 Disciplinary actions; penalties.— 51 (1) The following actions by a money services business, 52 authorized vendor, or affiliated party constitute grounds for 53 the issuance of a cease and desist order; the issuance of a 54 removal order; the denial, suspension, or revocation of a 55 license; or taking any other action within the authority of the 56 office pursuant to this chapter: 57 (cc) Violating any provision of the Military Lending Act, 58 10 U.S.C. s. 987, or the regulations adopted under that act in 59 32 C.F.R. part 232, in connection with a deferred presentment 60 transaction conducted under part IV of this chapter. 61 Section 4. Section 655.035, Florida Statutes, is created to 62 read: 63 655.035 Military lending.—Pursuant to s. 655.032, the 64 office may conduct an investigation that it deems necessary to 65 determine whether a financial institution, a subsidiary, a 66 service corporation, an affiliate, or other person is engaging 67 in or has engaged in conduct that is a violation of any 68 provision of the Military Lending Act, 10 U.S.C. s. 987, or the 69 regulations adopted under that act in 32 C.F.R. part 232. If the 70 office has reason to believe that a person has violated any such 71 provision or regulation, the office may initiate a proceeding 72 against such person in accordance with s. 655.033, s. 655.034, 73 s. 655.037, or s. 655.041. 74 Section 5. This act applies to a consumer credit 75 transaction or account for consumer credit established on or 76 after October 3, 2016, except it does not apply to a credit card 77 account exempted under 32 C.F.R. s. 232.13(c) until the 78 exemption expires. 79 Section 6. This act shall take effect October 3, 2016.