Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 872
       
       
       
       
       
       
                                Ì554840$Î554840                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/27/2017           .                                
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       The Committee on Banking and Insurance (Rouson) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 516.40, Florida Statutes, is created to
    6  read:
    7         516.40 Access to Responsible Credit Pilot Program.—
    8         (1)There is established within the Office of Financial
    9  Regulation the Access to Responsible Credit Pilot Program.
   10         (2) The Legislature finds that demand for responsible
   11  consumer finance loans in principal amounts of at least $300 and
   12  no more than $3,000 exceeds the supply of these loans. As a
   13  first step toward addressing this gap, the Access to Responsible
   14  Credit Pilot Program would allow more Floridians to obtain
   15  responsible consumer finance loans of at least $300 and no more
   16  than $3,000. The pilot program is also intended to assist
   17  consumers in building their credit and has additional consumer
   18  protections for these loans which exceed current protections
   19  under general law.
   20         Section 2. Section 516.41, Florida Statutes, is created to
   21  read:
   22         516.41 Definitions for ss. 516.40-516.46.—As used in ss.
   23  516.40-516.46, the term:
   24         (1) “Consumer reporting agency” has the same meaning as in
   25  s. 603(p) of the Fair Credit Reporting Act, 15 U.S.C. s.
   26  1681a(p).
   27         (2) “Credit score” has the same meaning as in s.
   28  609(f)(2)(A) of the Fair Credit Reporting Act, 15 U.S.C. s.
   29  1681g(f)(2)(A).
   30         (3) “Data furnisher” has the same meaning as the term
   31  “furnisher” in 12 C.F.R. s. 1022.41(c).
   32         (4) “Pilot program” or “program” means the Access to
   33  Responsible Credit Pilot Program.
   34         (5) “Pilot program license” means a license issued under
   35  ss. 516.40-516.46 authorizing a program licensee to make and
   36  collect program loans.
   37         (6) “Program branch office” means a location, other than a
   38  program licensee’s or referral partner’s principal place of
   39  business:
   40         (a) The address of which appears on business cards,
   41  stationery, or advertising used by the program licensee in
   42  connection with business conducted under this chapter;
   43         (b) At which the program licensee’s name, advertising or
   44  promotional materials, or signage suggests that program loans
   45  are originated, negotiated, funded, or serviced; or
   46         (c) At which program loans are originated, negotiated,
   47  funded, or serviced by a program licensee.
   48         (7) “Program branch office license” means a license issued
   49  to a program licensee for each program branch office in the
   50  state.
   51         (8) “Program licensee” means a person who is licensed to
   52  make and collect program loans under this chapter and who is
   53  approved by the office to participate in the program.
   54         (9) “Program loan” means a consumer finance loan with a
   55  principal amount of at least $300 and no more than $3,000
   56  originated pursuant to ss. 516.40–516.44, excluding the amount
   57  of the origination fee authorized under s. 516.43(3).
   58         (10) “Referral partner” means an entity that, at the
   59  referral partner’s physical location for business or through
   60  other means, performs one or more of the services authorized in
   61  s. 516.44(2) on behalf of a program licensee. A referral partner
   62  is not a credit service organization as defined in s. 817.7001
   63  or a loan broker as defined in s. 687.14.
   64         (11) “Refinance program loan” means a program loan that
   65  extends additional principal to a borrower and replaces and
   66  revises an existing program loan contract with the borrower. A
   67  refinance program loan does not include an extension, a
   68  deferral, or a rewrite of the program loan.
   69         Section 3. Section 516.42, Florida Statutes, is created to
   70  read:
   71         516.42 Requirements for program participation; program
   72  application requirements; fees.—
   73         (1) A person may not advertise, offer, or make a program
   74  loan or impose any charges or fees pursuant to s. 516.43 unless
   75  the person first obtains a pilot program license from the
   76  office.
   77         (2)(a) In order to participate in the program, a person
   78  must meet the following criteria:
   79         1. Be licensed to make consumer finance loans under s.
   80  516.05.
   81         2. Not be the subject of any insolvency proceeding.
   82         3. Not be subject to the issuance of a cease and desist
   83  order; the issuance of a removal order; the denial, suspension,
   84  or revocation of a license; or any other action within the
   85  authority of the office or any other state, territory, or
   86  jurisdiction.
   87         4. Not have a deficiency at the time of the person’s
   88  application.
   89         5. Pay a nonrefundable application fee of $1,000 to the
   90  office at the time of making the application, pursuant to rule
   91  of the commission.
   92         (b) A program applicant shall file with the office an
   93  electronic application, in a form and manner prescribed by
   94  commission rule, which contains all of the following information
   95  with respect to the applicant:
   96         1. The legal business name and any other name the applicant
   97  operates under.
   98         2. The applicant’s main address.
   99         3. The telephone number and e-mail address of the
  100  applicant.
  101         4. The address of any program branch office.
  102         5. The name, title, address, telephone number, and e-mail
  103  address of the contact person for the applicant.
  104         6. The applicant’s license number under this chapter.
  105         7. A statement as to whether the applicant intends to use
  106  the services of one or more referral partners under s. 516.44.
  107         8. A statement that the applicant has been accepted as a
  108  data furnisher by a consumer reporting agency and will report to
  109  a consumer reporting agency the payment performance of each
  110  borrower on all loans made under the program.
  111         9. The signature and certification of a control person of
  112  the applicant.
  113         (3) Except as otherwise provided in ss. 516.40-516.46, a
  114  program licensee is subject to all of the laws and rules
  115  governing consumer finance loans under this chapter.
  116         (4) A program licensee shall pay a nonrefundable biennial
  117  renewal fee of $1,000 pursuant to commission rule.
  118         (5) Notwithstanding s. 516.05(3), only one pilot program
  119  license is required for a person to make program loans under ss.
  120  516.40-516.46, regardless of whether the program licensee offers
  121  program loans to prospective borrowers at its own physical
  122  business locations, through referral partners, or through an
  123  electronic access point through which a prospective borrower may
  124  directly access the website of the program licensee.
  125         (6) Each branch office of a program licensee must be
  126  licensed under this section.
  127         (7) The office shall issue a program branch office license
  128  to a program licensee after the office determines that the
  129  program licensee submitted a completed electronic application
  130  for a program branch office license in a form prescribed by
  131  commission rule and paid an initial nonrefundable program branch
  132  office license fee of $30 per branch office as prescribed by
  133  rule of the commission. Application fees may not be prorated for
  134  partial years of licensure. The program branch office license
  135  must be issued in the name of the program licensee that
  136  maintains the branch office. An application is considered
  137  received for purposes of s. 120.60 upon receipt of a completed
  138  application form and the required fees. The application for a
  139  program branch office license must contain the following
  140  information:
  141         (a) The legal business name and any other name the
  142  applicant operates under.
  143         (b) The applicant’s main address.
  144         (c) The applicant’s telephone number and e-mail address.
  145         (d) The address of each program branch office.
  146         (e) The name, title, address, telephone number, and e-mail
  147  address of the contact person for the applicant.
  148         (f) The applicant’s license number under this chapter.
  149         (g) The signature and certification of an authorized person
  150  of the applicant.
  151         (8) A program branch office license must be renewed
  152  biennially at the time of renewing the program license under
  153  subsection (4). A nonrefundable branch renewal fee of $30 per
  154  program branch office, by commission rule, must be submitted at
  155  the time of renewal.
  156         Section 4. Section 516.43, Florida Statutes, is created to
  157  read:
  158         516.43 Requirements for program loans.—
  159         (1) GENERAL REQUIREMENTS.—A program licensee shall comply
  160  with each of the following requirements in making program loans:
  161         (a) A program loan must be unsecured.
  162         (b) A program loan must have a minimum term of 120 days,
  163  but it may not impose a prepayment penalty.
  164         (c) A program loan must be repayable by the borrower in
  165  substantially equal weekly, biweekly, or monthly installments.
  166         (d) A program loan must include a borrower’s right to
  167  rescind the program loan by notifying the program licensee of
  168  the borrower’s intent to rescind the program loan and return the
  169  principal advanced by the end of the business day after the day
  170  the program loan is consummated.
  171         (e) Notwithstanding s. 516.031, the interest rate charged
  172  on a program loan to the borrower may not exceed 36 percent. The
  173  interest rate must be fixed for the life of the program loan and
  174  must accrue on a simple-interest basis through the application
  175  of a daily periodic rate to the actual unpaid principal balance
  176  each day.
  177         (f) The program licensee shall reduce the rate on each
  178  subsequent program loan to the same borrower by a minimum of
  179  one-twelfth of 1 percent per month, if all of the following
  180  conditions are met:
  181         1. The subsequent program loan is originated no more than
  182  180 days after the prior program loan is fully repaid.
  183         2. The borrower was never more than 15 days delinquent on
  184  the prior program loan.
  185         3. The prior program loan was outstanding for at least one
  186  half of its original term before its repayment.
  187         (g) A program licensee may not refinance a program loan
  188  unless all of the following conditions are met at the time the
  189  borrower submits an application to refinance:
  190         1. The principal amount payable does not include more than
  191  60 days of unpaid interest accrued on the previous program loan
  192  in accordance with s. 516.031(5);
  193         2.The borrower has repaid at least 60 percent of the
  194  outstanding principal remaining on his or her existing program
  195  loan;
  196         3. The borrower is current on his or her outstanding
  197  program loan;
  198         4. The program licensee has underwritten the new program
  199  loan in accordance with subsection (7); and
  200         5. The borrower has not previously refinanced the
  201  outstanding program loan.
  202         (h) In lieu of the provisions of s. 687.08, a program
  203  licensee or, if applicable, its approved referral partner shall
  204  make available to the borrower by either electronic or physical
  205  means a plain and complete receipt of payment at the time that a
  206  payment is made by the borrower. For audit purposes, a program
  207  licensee shall maintain an electronic record for each receipt
  208  made available to a borrower, which must include a copy of the
  209  receipt and the date and time that the receipt was generated.
  210  Each receipt of payment must show all of the following:
  211         1. The name of the borrower.
  212         2. The name of the referral partner, if applicable.
  213         3. The total payment amount received.
  214         4. The date of payment.
  215         5. The program loan balance before and after application of
  216  the payment.
  217         6. The amount of the payment that was applied to the
  218  principal, interest, and fees.
  219         7. The type of payment made by the borrower.
  220         8. The following statement, prominently displayed in a type
  221  size equal to or greater than the type size used to display the
  222  other items on the receipt: “If you have any questions about
  223  your loan now or in the future, you should direct those
  224  questions to ...(name of program licensee)... by ...(at least
  225  two different ways in which a borrower may contact the program
  226  licensee)....”
  227         (2) WRITTEN DISCLOSURES.—
  228         (a)A program licensee shall provide those disclosures
  229  required of all licensees in s. 516.15.
  230         (b) Notwithstanding s. 516.15(1), the loan contract and all
  231  written disclosures and statements may be provided in English or
  232  in the language in which the loan is negotiated. A program
  233  licensee shall pay for any translation costs incurred by the
  234  office.
  235         (3) ORIGINATION FEES.—
  236         (a)Notwithstanding s. 516.031, a program licensee may
  237  contract for and receive a nonrefundable origination fee from a
  238  borrower on a program loan. The program licensee may either
  239  deduct the origination fee from the principal amount of the loan
  240  disbursed to the borrower or capitalize the origination fee into
  241  the principal balance of the loan. The origination fee is fully
  242  earned and nonrefundable immediately upon the making of the
  243  program loan and may not exceed 6 percent of the principal
  244  amount of the program loan made to the borrower, exclusive of
  245  the lesser of the origination fee or $75.
  246         (b) A program licensee may not charge a borrower an
  247  origination fee more than once in any 12-month period.
  248         (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.
  249  Notwithstanding s. 516.031, a program licensee approved by the
  250  office to participate in the program may:
  251         (a) Require payment from a borrower of no more than $20 for
  252  fees incurred by the program licensee from a dishonored payment
  253  due to insufficient funds of the borrower.
  254         (b) Notwithstanding s. 516.031(3)(a)9., contract for and
  255  receive a delinquency charge of no more than $15 for each
  256  payment in default for at least 10 days, if the charge is agreed
  257  upon in writing between the parties before imposing the charge.
  258  A delinquency fee imposed by a program licensee is subject to
  259  all of the following restrictions:
  260         1. No more than one delinquency fee may be imposed per
  261  delinquent payment.
  262         2. No more than two delinquency fees may be imposed during
  263  a period of 30 consecutive days.
  264  
  265  The program licensee, or any wholly owned subsidiary of the
  266  program licensee, may not sell or assign an unpaid debt to an
  267  independent third party for collection purposes unless the debt
  268  has been delinquent for at least 30 days.
  269         (5) CREDIT EDUCATION.—Before disbursement of program loan
  270  proceeds to the borrower, the program licensee must:
  271         (a) Direct the borrower to the consumer credit counseling
  272  services offered by an independent third party; or
  273         (b) Provide a credit education program or materials to the
  274  borrower. A borrower is not required to participate in any of
  275  these education programs or seminars. A credit education program
  276  or seminar offered pursuant to this subsection must be provided
  277  at no cost to the borrower.
  278         (6) CREDIT REPORTING.—
  279         (a)The program licensee shall report each borrower’s
  280  payment performance to at least one consumer reporting agency
  281  that compiles and maintains files on consumers on a nationwide
  282  basis. As used in this section, the term “consumer reporting
  283  agency that compiles and maintains files on consumers on a
  284  nationwide basis” has the same meaning as in s. 603(p) of the
  285  Fair Credit Reporting Act, 15 U.S.C. s. 1681a(p).
  286         (b)The office may not approve a person for the program
  287  before the person has been accepted as a data furnisher by a
  288  consumer reporting agency.
  289         (c) The program licensee shall provide each borrower with
  290  the name or names of the consumer reporting agency or agencies
  291  to which it will report the borrower’s payment history.
  292         (7) PROGRAM LOAN UNDERWRITING.—
  293         (a) The program licensee shall underwrite each program loan
  294  to determine a borrower’s ability and willingness to repay the
  295  program loan pursuant to the program loan terms. The program
  296  licensee may not make a program loan if it determines that the
  297  borrower’s total monthly debt service payments at the time of
  298  origination, including the program loan for which the borrower
  299  is being considered and all outstanding forms of credit that can
  300  be independently verified by the program licensee, exceed 35
  301  percent of the borrower’s gross monthly income.
  302         (b)1. The program licensee shall seek information and
  303  documentation pertaining to all of a borrower’s outstanding debt
  304  obligations during the loan application and underwriting
  305  process, including loans that are self-reported by the borrower
  306  but not available through independent verification. The program
  307  licensee shall verify such information using a credit report
  308  from at least one consumer reporting agency that compiles and
  309  maintains files on consumers on a nationwide basis or through
  310  other available electronic debt verification services that
  311  provide reliable evidence of a borrower’s outstanding debt
  312  obligations.
  313         2. The program licensee is not required to consider loans
  314  made to a borrower by friends or family in determining the
  315  borrower’s debt-to-income ratio.
  316         (c) The program licensee shall also verify the borrower’s
  317  income in determining the debt-to-income ratio using information
  318  from:
  319         1. Electronic means or services that provide reliable
  320  evidence of the borrower’s actual income; or
  321         2. Internal Revenue Service Form W-2, tax returns, payroll
  322  receipts, bank statements, or other third-party documents that
  323  provide reasonably reliable evidence of the borrower’s actual
  324  income.
  325         (8) PROVISIONS ON WAIVERS.—
  326         (a) A program licensee may not require, as a condition of
  327  providing the program loan, that the borrower:
  328         1. Waive any right, penalty, remedy, forum, or procedure
  329  provided for in any law applicable to the program loan,
  330  including the right to file and pursue a civil action or file a
  331  complaint with or otherwise communicate with the office, any
  332  court, or other governmental entity.
  333         2. Agree to the application of laws other than those of
  334  this state.
  335         3. Agree to resolve disputes in a jurisdiction outside of
  336  this state.
  337         (b) A waiver that is required as a condition of doing
  338  business with the program licensee is presumed involuntary,
  339  unconscionable, against public policy, and unenforceable.
  340         (c) A program licensee may not refuse to do business with
  341  or discriminate against a borrower or an applicant on the basis
  342  of the borrower’s or applicant’s refusal to waive any right,
  343  penalty, remedy, forum, or procedure, including the right to
  344  file and pursue a civil action or complaint with, or otherwise
  345  notify, the office, a court, or any other governmental entity.
  346  The exercise of a person’s right to refuse to waive any right,
  347  penalty, remedy, forum, or procedure, including a rejection of a
  348  contract requiring a waiver, does not affect any otherwise legal
  349  terms of a contract or an agreement.
  350         (d) This subsection does not apply to any agreement to
  351  waive any right, penalty, remedy, forum, or procedure, including
  352  any agreement to arbitrate a claim or dispute, after a claim or
  353  dispute has arisen. This subsection does not affect the
  354  enforceability or validity of any other provision of the
  355  contract.
  356         Section 5. Section 516.44, Florida Statutes, is created to
  357  read:
  358         516.44 Referral partners.—
  359         (1) REFERRAL PARTNER AGREEMENT.—All arrangements between a
  360  program licensee and a referral partner must be specified in a
  361  written referral partner agreement between the parties. The
  362  agreement must contain a provision that the referral partner
  363  agrees to comply with this section and all rules adopted under
  364  this section regarding the activities of referral partners, and
  365  that the office has access to the referral partner’s books and
  366  records pertaining to the referral partner’s operations under
  367  the agreement with the program licensee in accordance with s.
  368  516.45(4).
  369         (2) AUTHORIZED SERVICES.—A program licensee may use the
  370  services of one or more referral partners as provided in this
  371  section. A referral partner may perform one or more of the
  372  following services for a program licensee:
  373         (a) Distributing, circulating, using, or publishing printed
  374  brochures, flyers, fact sheets, or other written materials
  375  relating to program loans that the program licensee may make or
  376  negotiate. The written materials must be reviewed and approved
  377  in writing by the program licensee before being distributed,
  378  circulated, used, or published.
  379         (b) Providing written factual information about program
  380  loan terms, conditions, or qualification requirements to a
  381  prospective borrower which has been prepared by the program
  382  licensee or reviewed and approved in writing by the program
  383  licensee. A referral partner may discuss the information with a
  384  prospective borrower in general terms.
  385         (c) Notifying a prospective borrower of the information
  386  needed in order to complete a program loan application.
  387         (d) Entering information provided by the prospective
  388  borrower on a preprinted or an electronic application form or in
  389  a preformatted computer database.
  390         (e) Assembling credit applications and other materials
  391  obtained in the course of a credit application transaction for
  392  submission to the program licensee.
  393         (f) Contacting the program licensee to determine the status
  394  of a program loan application.
  395         (g) Communicating a response that is returned by the
  396  program licensee’s automated underwriting system to a borrower
  397  or a prospective borrower.
  398         (h) Obtaining a borrower’s signature on documents prepared
  399  by the program licensee and delivering final copies of the
  400  documents to the borrower.
  401         (i) Disbursing program loan proceeds to a borrower if this
  402  method of disbursement is acceptable to the borrower, subject to
  403  the requirements of subsection (3). A loan disbursement made by
  404  a referral partner under this paragraph is deemed to be made by
  405  the program licensee on the date that the funds are disbursed or
  406  otherwise made available by the referral partner to the
  407  borrower.
  408         (j) Receiving a program loan payment from the borrower if
  409  this method of payment is acceptable to the borrower, subject to
  410  the requirements of subsection (3).
  411         (k) Operating an electronic access point through which a
  412  prospective borrower may directly access the website of the
  413  program licensee to apply for a program loan.
  414         (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  415         (a) A loan payment made by a borrower to a referral partner
  416  under paragraph (2)(j) must be applied to the borrower’s program
  417  loan and is deemed received by the program licensee as of the
  418  date the payment is received by the referral partner.
  419         (b) A referral partner that receives loan payments must
  420  deliver or cause to be delivered to the borrower a plain and
  421  complete receipt showing all of the information specified in s.
  422  516.43(1)(h) at the time that the payment is made by the
  423  borrower.
  424         (c) A borrower who submits a loan payment to a referral
  425  partner under this subsection is not liable for a failure or
  426  delay by the referral partner in transmitting the payment to the
  427  program licensee.
  428         (d) A referral partner that disburses or receives loan
  429  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  430  maintain records of all disbursements made and loan payments
  431  received for a period of at least 2 years.
  432         (4) PROHIBITED ACTIVITIES.—A referral partner may not
  433  engage in any of the following activities:
  434         (a) Providing counseling or advice to a borrower or
  435  prospective borrower with respect to any loan term.
  436         (b) Providing loan-related marketing material that has not
  437  previously been approved by the program licensee to a borrower
  438  or a prospective borrower.
  439         (c) Negotiating a loan term between a program licensee and
  440  a prospective borrower.
  441         (d) Offering information pertaining to a single prospective
  442  borrower to more than one program licensee. However, if a
  443  program licensee has declined to offer a program loan to a
  444  prospective borrower and has so notified the prospective
  445  borrower in writing, the referral partner may then offer
  446  information pertaining to that borrower to another program
  447  licensee with whom it has a referral partner agreement.
  448         (e) Requiring a borrower to pay any fees or charges to the
  449  referral partner or to any other person in connection with a
  450  program loan other than those permitted under ss. 516.40-516.46.
  451         (5) DISCLOSURE NOTICE AND COMMUNICATION.—
  452         (a) At the time the referral partner receives or processes
  453  an application for a program loan, the referral partner shall
  454  provide the following statement to the applicant on behalf of
  455  the program licensee, in no smaller than 10-point type, and
  456  shall request that the applicant acknowledge receipt of the
  457  statement in writing:
  458  
  459         Your loan application has been referred to us by
  460         ...(name of referral partner).... We may pay a fee to
  461         ...(name of referral partner)... for the successful
  462         referral of your loan application. If you are approved
  463         for the loan, ...(name of program licensee)... will
  464         become your lender. If you have any questions about
  465         your loan, now or in the future, you should direct
  466         those questions to ...(name of program licensee)... by
  467         ...(insert at least two different ways in which a
  468         borrower may contact the program licensee).... If you
  469         wish to report a complaint about ...(name of referral
  470         partner)... or ...(name of program licensee)...
  471         regarding this loan transaction, you may contact the
  472         Division of Consumer Finance of the Office of
  473         Financial Regulation at 850-487-9687 or
  474         http://www.flofr.com.
  475  
  476         (b) If the loan applicant has questions about the program
  477  loan which the referral partner is not permitted to answer, the
  478  referral partner must make a good faith effort to assist the
  479  applicant in making direct contact with the program licensee
  480  before the program loan is consummated.
  481         (6) COMPENSATION.—
  482         (a) The program licensee may compensate a referral partner
  483  in accordance with a written agreement and a compensation
  484  schedule that is mutually agreed to by the program licensee and
  485  the referral partner, subject to the requirements in paragraph
  486  (b).
  487         (b) The compensation of a referral partner by a program
  488  licensee is subject to all of the following requirements:
  489         1. Compensation may not be paid to a referral partner in
  490  connection with a loan application unless the program loan is
  491  consummated.
  492         2. Compensation may not be paid to a referral partner based
  493  upon the principal amount of the program loan.
  494         3. Compensation may not be directly or indirectly passed on
  495  to a borrower through a fee or other compensation, or a portion
  496  of a fee or other compensation, charged to a borrower.
  497         4. Subject to the limitations specified in subparagraphs
  498  1., 2., and 3., the total compensation paid by a program
  499  licensee to a referral partner for the services specified in
  500  subsection (2) may not exceed the sum of:
  501         a. Sixty dollars per program loan, on average, assessed
  502  annually, whether paid at the time of consummation, through
  503  installments, or in a manner otherwise agreed upon by the
  504  program licensee and the referral partner; and
  505         b. Two dollars per payment received by the referral partner
  506  on behalf of the program licensee for the duration of the
  507  program loan, if the referral partner receives borrower loan
  508  payments on the program licensee’s behalf in accordance with
  509  subsection (3).
  510         5. The referral partner’s location for services and other
  511  information required by subsection (7) must be reported to the
  512  office.
  513         (c) A program licensee or a referral partner may not pass
  514  on to a borrower, whether directly or indirectly, any additional
  515  cost or other charge for compensation paid to a referral partner
  516  under this program.
  517         (7) NOTICE TO OFFICE.—A program licensee that uses the
  518  service of a referral partner must notify the office, in a form
  519  and manner prescribed by the commission, within 15 days after
  520  entering into a contract with a referral partner regarding all
  521  of the following:
  522         (a) The name, business address, and licensing details of
  523  the referral partner and all locations at which the referral
  524  partner will perform services under this section.
  525         (b) The name and contact information for an employee of the
  526  referral partner who is knowledgeable about, and has the
  527  authority to execute, the referral partner agreement.
  528         (c) The name and contact information of one or more
  529  employees of the referral partner who are responsible for that
  530  referral partner’s referring activities on behalf of the program
  531  licensee.
  532         (d) A statement by the program licensee that it has
  533  conducted due diligence with respect to the referral partner and
  534  has confirmed that none of the following applies:
  535         1. The filing of a petition under the United States
  536  Bankruptcy Code for bankruptcy or reorganization by the referral
  537  partner.
  538         2. The commencement of an administrative or judicial
  539  license suspension or revocation proceeding, or the denial of a
  540  license request or renewal, by any state, the District of
  541  Columbia, any United States territory, or any foreign country in
  542  which the referral partner operates, plans to operate, or is
  543  licensed to operate.
  544         3. A felony indictment involving the referral partner or an
  545  affiliated party.
  546         4. A felony conviction, guilty plea, or plea of nolo
  547  contendere, regardless of adjudication, of the referral partner
  548  or an affiliated party.
  549         5. Any suspected criminal act perpetrated in this state
  550  relating to activities regulated under this chapter by a
  551  referral partner.
  552         6. Notification by a law enforcement or prosecutorial
  553  agency that the referral partner is under criminal investigation
  554  which includes, but is not limited to, subpoenas to produce
  555  records or testimony and warrants issued by a court of competent
  556  jurisdiction which authorize the search and seizure of any
  557  records relating to a business activity regulated under this
  558  chapter.
  559  
  560  As used in this paragraph, the term “affiliated party” means a
  561  director, an officer, a responsible person, an employee, or a
  562  foreign affiliate of a referral partner; or a person who has a
  563  controlling interest in a referral partner.
  564         (e) Any other information requested by the office subject
  565  to the limitations specified in s. 516.45(4).
  566         (8) NOTICE OF CHANGES.—A referral partner must provide the
  567  program licensee with written notice, sent by registered mail,
  568  within 30 days after any changes are made to the information
  569  specified in paragraphs (7)(a)-(c) or within 30 days after the
  570  occurrence or knowledge of any of the events specified in
  571  paragraph (7)(d), whichever is later.
  572         (9) RESPONSIBILITY FOR ACTS OF A REFERRAL PARTNER.—A
  573  program licensee is responsible for any act of its referral
  574  partner if the program licensee should have known of the act or
  575  if the program licensee had actual knowledge that the act is a
  576  violation of this chapter and allowed it to continue. Such
  577  responsibility is limited to conduct engaged in by the referral
  578  partner pursuant to the authority granted to it by the program
  579  licensee under the contract between the referral partner and the
  580  program licensee.
  581         (10) REFERRAL PARTNER FEE.—The program licensee shall pay
  582  to the office at the time it files a referral partner notice
  583  with the office a one-time, nonrefundable fee of $30 for each
  584  referral partner, as prescribed by commission rule.
  585         Section 6. Section 516.45, Florida Statutes, is created to
  586  read:
  587         516.45 Examinations; disciplinary actions.—
  588         (1) Notwithstanding any other law, commencing on January 1,
  589  2018, the office shall examine each program licensee that is
  590  accepted into the program in accordance with this chapter at
  591  least once every 24 months.
  592         (2) Notwithstanding subsection (1), the office may waive
  593  one or more branch office examinations if the office finds that
  594  such examinations are not necessary for the protection of the
  595  public due to the centralized operations of the program licensee
  596  or other factors acceptable to the office.
  597         (3) The examined program licensee shall pay for the cost of
  598  an examination to the office, pursuant to commission rule, and
  599  the office may maintain an action for the recovery of the cost
  600  in any court of competent jurisdiction. In determining the cost
  601  of the examination, the office may use the estimated average
  602  hourly cost for all persons performing examinations of program
  603  licensees or other persons subject to ss. 516.40-516.46 for the
  604  fiscal year.
  605         (4) A program licensee or referral partner shall maintain,
  606  preserve, and keep available for examination all books,
  607  accounts, or other documents required by this chapter, any rule
  608  or order adopted under this chapter, or any agreement entered
  609  into with the office.
  610         (5) A program licensee who violates any applicable
  611  provision of this chapter is subject to disciplinary action
  612  pursuant to s. 516.07(2). Any such disciplinary action is
  613  subject to s. 120.60. A program licensee is also subject to
  614  disciplinary action for a violation of s. 516.44 committed by
  615  any of its referral partners.
  616         (6) The office may take any of the following actions
  617  against a referral partner who violates s. 516.44:
  618         (a) Disqualify the referral partner from performing
  619  services under this chapter;
  620         (b) Bar the referral partner from performing services at
  621  one or more specific locations of the referral partner;
  622         (c) Terminate a written agreement between a referral
  623  partner and a program licensee;
  624         (d) Impose an administrative fine not to exceed $1,000 for
  625  each such act of the referral partner; and
  626         (e) Prohibit program licensees from using the referral
  627  partner, if the office deems it to be in the public interest.
  628         Section 7. Section 516.46, Florida Statutes, is created to
  629  read:
  630         516.46 Annual reports; reports by the office.—
  631         (1) Beginning in 2019, on or before March 15 of each year,
  632  a program licensee shall file a report with the office on each
  633  of the items specified in subsection (2), on a form and in a
  634  manner as prescribed by commission rule, which contains
  635  aggregated or anonymized data without reference to any
  636  borrower’s nonpublic personal information or any proprietary or
  637  trade secret information of the program licensee.
  638         (2) On or before January 1, 2020, the office shall post a
  639  report on its website summarizing the use of the program based
  640  on the information contained in reports filed by each program
  641  licensee under subsection (1). The report must state the
  642  information in the aggregate so as not to identify data by
  643  specific program licensee and must specify the period to which
  644  the report corresponds. The report must include, but not be
  645  limited to, the following for that period:
  646         (a) The number of entities that applied to participate in
  647  the program.
  648         (b) The number of entities accepted to participate in the
  649  program.
  650         (c) The office’s reasons for rejecting applications for
  651  participation, if applicable. This information must be provided
  652  in a manner that does not identify the entity or entities
  653  rejected.
  654         (d) The number of program loan applications received by
  655  program licensees participating in the program, the number of
  656  program loans made under the program, the total amount loaned,
  657  the distribution of loan lengths upon origination, and the
  658  distribution of interest rates and principal amounts upon
  659  origination among those program loans.
  660         (e) The number of borrowers who obtained more than one
  661  program loan and the distribution of the number of program loans
  662  per borrower.
  663         (f) Of the borrowers who obtained more than one program
  664  loan, the percentage of those borrowers whose credit scores
  665  increased between successive loans, based on information from at
  666  least one major credit bureau, and the average size of the
  667  increase.
  668         (g) The income distribution of borrowers upon program loan
  669  origination, including the number of borrowers who obtained at
  670  least one program loan and who resided in a low-income or
  671  moderate-income census tract at the time of their loan
  672  applications.
  673         (h) The number of borrowers who obtained program loans for
  674  the following purposes, based on borrower responses at the time
  675  of their loan applications indicating the primary purpose for
  676  which the program loan was obtained:
  677         1. Pay medical expenses.
  678         2. Pay for vehicle repair or a vehicle purchase.
  679         3. Pay bills.
  680         4. Consolidate debt.
  681         5. Build or repair credit history.
  682         6. Pay other expenses.
  683         (i) The number of borrowers who self-report that they had a
  684  bank account at the time of their loan application and the
  685  number of borrowers who self-report that they did not have a
  686  bank account at the time of their loan application.
  687         (j) With respect to refinance program loans, the report
  688  must specifically include the following information:
  689         1. The number and percentage of borrowers who applied for a
  690  refinance program loan.
  691         2. Of those borrowers who applied for a refinance program
  692  loan, the number and percentage of borrowers who obtained a
  693  refinance program loan.
  694         (k) The number and type of referral partners used by
  695  program licensees.
  696         (l) The number and percentage of borrowers who obtained one
  697  or more program loans on which delinquency charges were
  698  assessed, the total amount of delinquency charges assessed, and
  699  the average delinquency charge assessed by dollar amount and as
  700  a percentage of the principal amount loaned.
  701         (m) The performance of program loans under the program as
  702  reflected by all of the following:
  703         1. The number and percentage of borrowers who experienced
  704  at least one delinquency lasting between 7 and 29 days, and the
  705  distribution of principal loan amounts corresponding to those
  706  delinquencies.
  707         2. The number and percentage of borrowers who experienced
  708  at least one delinquency lasting between 30 and 59 days, and the
  709  distribution of principal loan amounts corresponding to those
  710  delinquencies.
  711         3. The number and percentage of borrowers who experienced
  712  at least one delinquency lasting 60 days or more, and the
  713  distribution of principal loan amounts corresponding to those
  714  delinquencies.
  715         (n) The number and types of violations of ss. 516.40-516.46
  716  by referral partners which were documented by the office.
  717         (o) The number and types of violations of ss. 516.40-516.46
  718  by program licensees which were documented by the office.
  719         (p) The number of times that the office disqualified a
  720  referral partner from performing services, barred a referral
  721  partner from performing services at one or more specific
  722  locations of the referral partner, terminated a written
  723  agreement between a referral partner and a program licensee, or
  724  imposed an administrative penalty.
  725         (q) The number of complaints received by the office about a
  726  program licensee or a referral partner and the nature of those
  727  complaints.
  728         Section 8. Sections 516.40-516.46, Florida Statutes, are
  729  repealed on December 31, 2022, unless reenacted or superseded by
  730  another law enacted by the Legislature before that date.
  731         Section 9. This act shall take effect July 1, 2018.
  732  
  733  ================= T I T L E  A M E N D M E N T ================
  734  And the title is amended as follows:
  735         Delete everything before the enacting clause
  736  and insert:
  737                        A bill to be entitled                      
  738         An act relating to consumer finance loans; creating s.
  739         516.40, F.S.; establishing the Access to Responsible
  740         Credit Pilot Program within the Office of Financial
  741         Regulation; providing legislative findings and intent;
  742         creating s. 516.41, F.S.; defining terms; creating s.
  743         516.42, F.S.; prohibiting a person from certain
  744         activities relating to program loans unless the person
  745         obtains a pilot program license from the office;
  746         providing criteria for participation in the pilot
  747         program; specifying application requirements and fees;
  748         providing for construction; specifying a renewal fee;
  749         providing that only one pilot program license is
  750         required for a person to make program loans; requiring
  751         that branch offices of a program licensee be licensed;
  752         specifying requirements and a fee for applications for
  753         a program branch office license; requiring program
  754         branch office licenses to be renewed biennially and
  755         specifying a branch office renewal fee; creating s.
  756         516.43, F.S.; providing requirements for and
  757         limitations on program loans; requiring a program
  758         licensee to provide specified disclosures; authorizing
  759         licensees to provide certain documents in the language
  760         in which the loan was negotiated; requiring a program
  761         licensee to pay for certain translation costs incurred
  762         by the office; authorizing a program licensee to
  763         contract for and receive a specified nonrefundable
  764         origination fee from a borrower on a program loan;
  765         authorizing a program licensee to collect specified
  766         insufficient funds fees and delinquency charges;
  767         requiring a program licensee to provide specified
  768         credit education to a borrower before disbursing
  769         program loan proceeds; requiring a program licensee to
  770         report borrowers’ payment performance to at least one
  771         specified consumer reporting agency and provide
  772         borrowers with the names of such agencies; prohibiting
  773         the office from approving a person for the program
  774         before the person is accepted as a data furnisher by a
  775         consumer reporting agency; requiring a program
  776         licensee to underwrite each program loan; prohibiting
  777         a program licensee from making a program loan under
  778         certain circumstances; providing required and
  779         authorized procedures for a program licensee to
  780         determine a borrower’s ability and willingness to
  781         repay the program loan; prohibiting a program licensee
  782         from requiring certain waivers from a borrower or from
  783         certain acts against a borrower who refuses certain
  784         waivers; providing for applicability and construction;
  785         creating s. 516.44, F.S.; requiring arrangements
  786         between a program licensee and a referral partner to
  787         be specified in a written agreement; providing
  788         requirements for such agreement; specifying authorized
  789         services for referral partners; providing requirements
  790         for a referral partner who accepts loan payments from
  791         a borrower; providing for construction; prohibiting
  792         specified activities by a referral partner; requiring
  793         a referral partner to provide a specified notice to an
  794         applicant for a program loan and certain assistance to
  795         the applicant under certain circumstances; specifying
  796         requirements, limitations, and prohibitions for the
  797         compensation of a referral partner by a program
  798         licensee; requiring a program licensee to provide a
  799         specified notice to the office after entering into a
  800         contract with a referral partner; requiring a referral
  801         partner to provide written notice to the program
  802         licensee of certain information within a specified
  803         time; specifying the program licensee’s responsibility
  804         for acts of its referral partner; requiring a program
  805         licensee to pay a specified fee to the office to file
  806         a referral partner notice; requiring rulemaking by the
  807         Financial Services Commission; creating s. 516.45,
  808         F.S.; requiring the office to examine program
  809         licensees at specified intervals beginning on a
  810         specified date; providing an exception; requiring
  811         program licensees to pay the cost of examinations;
  812         authorizing the office to maintain an action for
  813         recovery of the cost; authorizing a method to
  814         determine the cost of examinations; providing a
  815         recordkeeping requirement for program licensees and
  816         referral partners; providing that a program licensee
  817         is subject to certain disciplinary action for certain
  818         violations; authorizing the office to take certain
  819         disciplinary actions; requiring rulemaking by the
  820         commission; creating s. 516.46, F.S.; requiring a
  821         program licensee to file a specified annual report
  822         with the office beginning on a certain date; requiring
  823         the office to post a report to its website summarizing
  824         the use of the program by a certain date; specifying
  825         information to be contained in the office’s report;
  826         providing for conditional future repeal of the
  827         program; providing an effective date.