Florida Senate - 2019 SENATOR AMENDMENT
Bill No. HB 861
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LEGISLATIVE ACTION
Senate . House
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Floor: 1/AD/2R .
05/02/2019 10:50 AM .
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Senator Rouson moved the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 109 - 110
4 and insert:
5 the information required by the amendments in this act to
6 sections 129.03 and 166.241, Florida Statutes.
7 Section 4. Effective January 1, 2020, section 516.405,
8 Florida Statutes, is created to read:
9 516.405 Access to Responsible Credit Pilot Program.—
10 (1) The Access to Responsible Credit Pilot Program is
11 created within the Office of Financial Regulation to allow more
12 Floridians to obtain responsible consumer finance loans in
13 principal amounts of at least $300 but not more than $7,500.
14 (2) The pilot program is intended to assist consumers in
15 building their credit and to provide additional consumer
16 protections for these loans that exceed current protections
17 under general law.
18 Section 5. Effective January 1, 2020, section 516.41,
19 Florida Statutes, is created to read:
20 516.41 Definitions.—As used in ss. 516.405-516.46, the
21 term:
22 (1) “Access partner” means an entity that, at one or more
23 physical business locations owned or rented by the entity,
24 performs one or more of the services authorized in s. 516.44(2)
25 on behalf of a program licensee.
26 (a) The term includes the following, and agents of the
27 following:
28 1. A bank, as defined in s. 658.12(2).
29 2. A national bank, as defined in s. 658.12(12).
30 3. A credit union, as defined in s. 657.002(4).
31 4. An insurance agent, as defined in s. 626.015(3).
32 5. An insurance agency, as defined in s. 626.015(10).
33 6. A tax preparation service.
34 7. A money services business, as defined in s. 560.103(22).
35 8. An authorized vendor of a money services business, as
36 defined in s. 560.103(3).
37 9. A law office.
38 10. An investment adviser, as defined in s. 517.021(14).
39 11. A financial services provider.
40 12. A public accounting firm as defined in s. 473.302(7).
41 (b) The term does not include a credit service organization
42 as defined in s. 817.7001 or a loan broker as defined in s.
43 687.14.
44 (2) “Consumer reporting agency” has the same meaning as the
45 term “consumer reporting agency that compiles and maintains
46 files on consumers on a nationwide basis” in the Fair Credit
47 Reporting Act, 15 U.S.C. s. 1681a(p).
48 (3) “Credit score” has the same meaning as in the Fair
49 Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
50 (4) “Data furnisher” has the same meaning as the term
51 “furnisher” in 12 C.F.R. s. 1022.41(c).
52 (5) “Pilot program” or “program” means the Access to
53 Responsible Credit Pilot Program.
54 (6) “Pilot program license” or “program license” means a
55 license issued under ss. 516.405-516.46 authorizing a program
56 licensee to make and collect program loans.
57 (7) “Program branch office license” means a license issued
58 under the program for each location, other than a program
59 licensee’s or access partner’s principal place of business:
60 (a) The address of which appears on business cards,
61 stationery, or advertising used by the program licensee in
62 connection with business conducted under this chapter;
63 (b) At which the program licensee’s name, advertising or
64 promotional materials, or signage suggests that program loans
65 are originated, negotiated, funded, or serviced by the program
66 licensee; or
67 (c) At which program loans are originated, negotiated,
68 funded, or serviced by the program licensee.
69 (8) “Program licensee” means a person who is licensed to
70 make and collect loans under this chapter and who is approved by
71 the office to participate in the program.
72 (9) “Program loan” means a consumer finance loan with a
73 principal amount of at least $300, but not more than $7,500,
74 originated pursuant to ss. 516.405–516.46, excluding the amount
75 of the origination fee authorized under s. 516.43(3).
76 (10) “Refinance program loan” means a program loan that
77 extends additional principal to a borrower and replaces and
78 revises an existing program loan contract with the borrower. A
79 refinance program loan does not include an extension, a
80 deferral, or a rewrite of the program loan.
81 Section 6. Effective January 1, 2020, section 516.42,
82 Florida Statutes, is created to read:
83 516.42 Requirements for program participation; program
84 application requirements.—
85 (1) A person may not advertise, offer, or make a program
86 loan, or impose any charges or fees pursuant to s. 516.43,
87 unless the person obtains a pilot program license from the
88 office.
89 (2) In order to obtain a pilot program license, a person
90 must:
91 (a)1. Be licensed to make and collect consumer finance
92 loans under s. 516.05; or
93 2. Submit the application for the license required in s.
94 516.03 concurrently with the application for the program
95 license. The application required by s. 516.03 must be approved
96 and the license under that section must be issued in order to
97 obtain the program license.
98 (b) Be accepted as a data furnisher by a consumer reporting
99 agency.
100 (c) Demonstrate financial responsibility, experience,
101 character, or general fitness, such as to command the confidence
102 of the public and to warrant the belief that the business
103 operated at the licensed or proposed location is lawful, honest,
104 fair, efficient, and within the purposes of this chapter.
105 (d) Not be subject to the issuance of a cease and desist
106 order; the issuance of a removal order; the denial, suspension,
107 or revocation of a license; or any other action within the
108 authority of the office, any financial regulatory agency in this
109 state, or any other state or federal regulatory agency that
110 affects the ability of such person to participate in the
111 program.
112 (3)(a) A program applicant must file with the office a
113 digital application in a form and manner prescribed by
114 commission rule which contains all of the following information
115 with respect to the applicant:
116 1. The legal business name and any other name under which
117 the applicant operates.
118 2. The applicant’s main address.
119 3. The applicant’s telephone number and e-mail address.
120 4. The address of each program branch office.
121 5. The name, title, address, telephone number, and e-mail
122 address of the applicant’s contact person.
123 6. The license number, if the applicant is licensed under
124 s. 516.05.
125 7. A statement as to whether the applicant intends to use
126 the services of one or more access partners under s. 516.44.
127 8. A statement that the applicant has been accepted as a
128 data furnisher by a consumer reporting agency and will report to
129 a consumer reporting agency the payment performance of each
130 borrower on all program loans.
131 9. The signature and certification of an authorized person
132 of the applicant.
133 (b) A person who desires to participate in the program but
134 who is not licensed to make consumer finance loans pursuant to
135 s. 516.05 must concurrently submit the following digital
136 applications in a form and manner specified in this chapter to
137 the office:
138 1. An application pursuant to s. 516.03 for licensure to
139 make consumer finance loans.
140 2. An application for admission to the program in
141 accordance with paragraph (a).
142 (4) Except as otherwise provided in ss. 516.405-516.46, a
143 program licensee is subject to all the laws and rules governing
144 consumer finance loans under this chapter. A program license
145 must be renewed biennially.
146 (5) Notwithstanding s. 516.05(3), only one program license
147 is required for a person to make program loans under ss.
148 516.405-516.46, regardless of whether the program licensee
149 offers program loans to prospective borrowers at its own
150 physical business locations, through access partners, or via an
151 electronic access point through which a prospective borrower may
152 directly access the website of the program licensee.
153 (6) Each branch office of a program licensee must be
154 licensed under this section.
155 (7) The office shall issue a program branch office license
156 to a program licensee after the office determines that the
157 program licensee has submitted a completed electronic
158 application for a program branch office license in a form
159 prescribed by commission rule. The program branch office license
160 must be issued in the name of the program licensee that
161 maintains the branch office. An application is considered
162 received for purposes of s. 120.60 upon receipt of a completed
163 application form. The application for a program branch office
164 license must contain the following information:
165 (a) The legal business name and any other name under which
166 the applicant operates.
167 (b) The applicant’s main address.
168 (c) The applicant’s telephone number and e-mail address.
169 (d) The address of each program branch office.
170 (e) The name, title, address, telephone number, and e-mail
171 address of the applicant’s contact person.
172 (f) The applicant’s license number, if the applicant is
173 licensed under this chapter.
174 (g) The signature and certification of an authorized person
175 of the applicant.
176 (8) Except as provided in subsection (9), a program branch
177 office license must be renewed biennially at the time of
178 renewing the program license.
179 (9) Notwithstanding subsection (7), the office may deny an
180 initial or renewal application for a program license or program
181 branch office license if the applicant or any person with power
182 to direct the management or policies of the applicant’s
183 business:
184 (a) Fails to demonstrate financial responsibility,
185 experience, character, or general fitness, such as to command
186 the confidence of the public and to warrant the belief that the
187 business operated at the licensed or proposed location is
188 lawful, honest, fair, efficient, and within the purposes of this
189 chapter.
190 (b) Pled nolo contendere to, or was convicted or found
191 guilty of, a crime involving fraud, dishonest dealing, or any
192 act of moral turpitude, regardless of whether adjudication was
193 withheld.
194 (c) Is subject to the issuance of a cease and desist order;
195 the issuance of a removal order; the denial, suspension, or
196 revocation of a license; or any other action within the
197 authority of the office, any financial regulatory agency in this
198 state, or any other state or federal regulatory agency that
199 affects the applicant’s ability to participate in the program.
200 (10) The commission shall adopt rules to implement this
201 section.
202 Section 7. Effective January 1, 2020, section 516.43,
203 Florida Statutes, is created to read:
204 516.43 Requirements for program loans.—
205 (1) REQUIREMENTS.—A program licensee shall comply with each
206 of the following requirements in making program loans:
207 (a) A program loan must be unsecured.
208 (b) A program loan must have:
209 1. A term of at least 120 days, but not more than 36
210 months, for a loan with a principal balance upon origination of
211 at least $300, but not more than $3,000.
212 2. A term of at least 12 months, but not more than 60
213 months, for a loan with a principal balance upon origination of
214 more than $3,000.
215 (c) A borrower may not receive a program loan for a
216 principal balance exceeding $5,000 unless:
217 1. The borrower has paid in full the outstanding principal,
218 interest, and fees on a previous program loan;
219 2. The borrower’s credit score increased from the time of
220 application for the borrower’s first consummated program loan;
221 and
222 3. The borrower was never delinquent for more than 7 days
223 on a previous program loan.
224 (d) A program loan may not impose a prepayment penalty. A
225 program loan must be repayable by the borrower in substantially
226 equal, periodic installments, except that the final payment may
227 be less than the amount of the prior installments. Installments
228 must be due either every 2 weeks, semimonthly, or monthly.
229 (e) A program loan must include a borrower’s right to
230 rescind the program loan by notifying the program licensee of
231 the borrower’s intent to rescind the program loan and returning
232 the principal advanced by the end of the business day after the
233 day the program loan is consummated.
234 (f) Notwithstanding s. 516.031, the maximum annual interest
235 rate charged on a program loan to the borrower, which must be
236 fixed for the duration of the program loan, is 36 percent on
237 that portion of the unpaid principal balance up to and including
238 $3,000; 30 percent on that portion of the unpaid principal
239 balance exceeding $3,000 and up to and including $4,000; and 24
240 percent on that portion of the unpaid principal balance
241 exceeding $4,000 and up to and including $7,500. The original
242 principal amount of the program loan is equal to the amount
243 financed as defined by the federal Truth in Lending Act and
244 Regulation Z of the Board of Governors of the Federal Reserve
245 System. In determining compliance with the maximum annual
246 interest rates in this paragraph, the computations used must be
247 simple interest through the application of a daily periodic rate
248 to the actual unpaid principal balance each day and may not be
249 added-on interest or any other computations.
250 (g) If two or more interest rates are applied to the
251 principal amount of a program loan, the program licensee may
252 charge, contract for, and receive interest at that single annual
253 percentage rate that, if applied according to the actuarial
254 method to each of the scheduled periodic balances of principal,
255 would produce at maturity the same total amount of interest as
256 would result from the application of the two or more rates
257 otherwise permitted, based upon the assumption that all payments
258 are made as agreed.
259 (h) The program licensee shall reduce the interest rates
260 specified in paragraph (f) on each subsequent program loan to
261 the same borrower by a minimum of 1 percent, up to a maximum of
262 6 percent, if all of the following conditions are met:
263 1. The subsequent program loan is originated within 180
264 days after the prior program loan is fully repaid.
265 2. The borrower was never more than 15 days delinquent on
266 the prior program loan.
267 3. The prior program loan was outstanding for at least one
268 half of its original term before its repayment.
269 (i) The program licensee may not induce or permit any
270 person to become obligated to the program licensee, directly or
271 contingently, or both, under more than one program loan at the
272 same time with the program licensee.
273 (j) The program licensee may not refinance a program loan
274 unless all of the following conditions are met at the time the
275 borrower submits an application to refinance:
276 1. The principal amount payable may not include more than
277 60 days’ unpaid interest accrued on the previous program loan
278 pursuant to s. 516.031(5).
279 2. For a program loan with an original term up to and
280 including 25 months, the borrower has repaid at least 60 percent
281 of the outstanding principal remaining on his or her existing
282 program loan.
283 3. For a program loan with an original term of more than 25
284 months, but not more than 60 months, the borrower has made
285 current payments for at least 9 months on his or her existing
286 program loan.
287 4. The borrower is current on payments for his or her
288 existing program loan.
289 5. The program licensee must underwrite the new program
290 loan in accordance with subsection (7).
291 (k) In lieu of the provisions of s. 687.08, the program
292 licensee or, if applicable, its approved access partner shall
293 make available to the borrower by electronic or physical means a
294 plain and complete receipt of payment at the time that a payment
295 is made by the borrower. For audit purposes, the program
296 licensee must maintain an electronic record for each receipt
297 made available to a borrower, which must include a copy of the
298 receipt and the date and time that the receipt was generated.
299 Each receipt made available to the borrower must show all of the
300 following:
301 1. The name of the borrower.
302 2. The name of the access partner, if applicable.
303 3. The total payment amount received.
304 4. The date of payment.
305 5. The program loan balance before and after application of
306 the payment.
307 6. The amount of the payment that was applied to the
308 principal, interest, and fees.
309 7. The type of payment made by the borrower.
310 8. The following statement, prominently displayed in a type
311 size equal to or larger than the type size used to display the
312 other items on the receipt: “If you have any questions about
313 your loan now or in the future, you should direct those
314 questions to ...(name of program licensee)... by ...(at least
315 two different ways in which a borrower may contact the program
316 licensee)....”
317 (2) WRITTEN DISCLOSURES AND STATEMENTS.—
318 (a) Notwithstanding s. 516.15(1), the loan contract and all
319 written disclosures and statements may be provided by a program
320 licensee to a borrower in English or in the language in which
321 the loan is negotiated.
322 (b) The program licensee shall provide to a borrower all
323 the statements required of licensees under s. 516.15.
324 (3) ORIGINATION FEES.—Notwithstanding s. 516.031, a program
325 licensee may:
326 (a) Contract for and receive an origination fee from a
327 borrower on a program loan. The program licensee may either
328 deduct the origination fee from the principal amount of the loan
329 disbursed to the borrower or capitalize the origination fee into
330 the principal balance of the loan. The origination fee is fully
331 earned and nonrefundable immediately upon the making of the
332 program loan and may not exceed the lesser of 6 percent of the
333 principal amount of the program loan made to the borrower,
334 exclusive of the origination fee, or $90.
335 (b) Not charge a borrower an origination fee more than
336 twice in any 12-month period.
337 (4) INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
338 program licensee may:
339 (a) Notwithstanding s. 516.031, require payment from a
340 borrower of no more than $20 for fees incurred by the program
341 licensee from a dishonored payment due to insufficient funds of
342 the borrower.
343 (b) Notwithstanding s. 516.031(3)(a)9., contract for and
344 receive a delinquency charge for each payment in default for at
345 least 7 days if the charge is agreed upon, in writing, between
346 the program licensee and the borrower before it is imposed.
347 Delinquency charges may be imposed as follows:
348 1. For payments due monthly, the delinquency charge for a
349 payment in default may not exceed $15.
350 2. For payments due semimonthly, the delinquency charge for
351 a payment in default may not exceed $7.50.
352 3. For payments due every 2 weeks, the delinquency charge
353 for a payment in default may not exceed $7.50 if two payments
354 are due within the same calendar month, and may not exceed $5 if
355 three payments are due within the same calendar month.
356
357 The program licensee, or any wholly owned subsidiary of the
358 program licensee, may not sell or assign an unpaid debt to an
359 independent third party for collection purposes unless the debt
360 has been delinquent for at least 30 days.
361 (5) CREDIT EDUCATION.—Before disbursement of program loan
362 proceeds to the borrower, the program licensee must:
363 (a) Direct the borrower to the consumer credit counseling
364 services offered by an independent third party; or
365 (b) Provide a credit education program or seminar to the
366 borrower. The borrower is not required to participate in such
367 education program or seminar. A credit education program or
368 seminar offered pursuant to this paragraph must be provided at
369 no cost to the borrower.
370 (6) CREDIT REPORTING.—
371 (a) For a borrower who did have a credit score at the time
372 of the borrower’s loan application, the program licensee shall
373 report each such borrower’s payment performance to at least one
374 consumer reporting agency. For a borrower who did not have a
375 credit score at the time of the borrower’s loan application, the
376 program licensee shall report each such borrower’s payment
377 performance to at least two consumer reporting agencies.
378 (b) The office may not approve an applicant for the program
379 license before the applicant has been accepted as a data
380 furnisher by a consumer reporting agency.
381 (c) The program licensee shall provide each borrower with
382 the name or names of the consumer reporting agency or agencies
383 to which it will report the borrower’s payment history.
384 (7) PROGRAM LOAN UNDERWRITING.—
385 (a) The program licensee must underwrite each program loan
386 to determine a borrower’s ability and willingness to repay the
387 program loan pursuant to the program loan terms. The program
388 licensee may not make a program loan if it determines that the
389 borrower’s total monthly debt service payments at the time of
390 origination, including the program loan for which the borrower
391 is being considered and all outstanding forms of credit that can
392 be independently verified by the program licensee, exceed 50
393 percent of the borrower’s gross monthly income for a loan of not
394 more than $3,000, or exceed 36 percent of the borrower’s gross
395 monthly income for a loan of more than $3,000.
396 (b)1. The program licensee must seek information and
397 documentation pertaining to all of a borrower’s outstanding debt
398 obligations during the loan application and underwriting
399 process, including loans that are self-reported by the borrower
400 but not available through independent verification. The program
401 licensee must verify such information using a credit report from
402 at least one consumer reporting agency or through other
403 available electronic debt verification services that provide
404 reliable evidence of a borrower’s outstanding debt obligations.
405 2. The program licensee is not required to consider loans
406 made to a borrower by friends or family in determining the
407 borrower’s debt-to-income ratio.
408 (c) The program licensee must verify the borrower’s income
409 to determine the debt-to-income ratio using information from:
410 1. Electronic means or services that provide reliable
411 evidence of the borrower’s actual income; or
412 2. The Internal Revenue Service Form W-2, tax returns,
413 payroll receipts, bank statements, or other third-party
414 documents that provide reasonably reliable evidence of the
415 borrower’s actual income.
416 (8) WAIVERS.—
417 (a) A program licensee may not require, as a condition of
418 providing the program loan, that the borrower:
419 1. Waive any right, penalty, remedy, forum, or procedure
420 provided for in any law applicable to the program loan,
421 including the right to file and pursue a civil action or file a
422 complaint with or otherwise communicate with the office, a
423 court, or any other governmental entity.
424 2. Agree to the application of laws other than those of
425 this state.
426 3. Agree to resolve disputes in a jurisdiction outside of
427 this state.
428 (b) A waiver that is required as a condition of doing
429 business with the program licensee is presumed involuntary,
430 unconscionable, against public policy, and unenforceable.
431 (c) A program licensee may not refuse to do business with
432 or discriminate against a borrower or an applicant on the basis
433 of the borrower’s or applicant’s refusal to waive any right,
434 penalty, remedy, forum, or procedure, including the right to
435 file and pursue a civil action or complaint with, or otherwise
436 communicate with, the office, a court, or any other governmental
437 entity. The exercise of a person’s right to refuse to waive any
438 right, penalty, remedy, forum, or procedure, including a
439 rejection of a contract requiring a waiver, does not affect any
440 otherwise legal terms of a contract or an agreement.
441 (d) This subsection does not apply to any agreement to
442 waive any right, penalty, remedy, forum, or procedure, including
443 any agreement to arbitrate a claim or dispute after a claim or
444 dispute has arisen. This subsection does not affect the
445 enforceability or validity of any other provision of the
446 contract.
447 Section 8. Effective January 1, 2020, section 516.44,
448 Florida Statutes, is created to read:
449 516.44 Access partners.—
450 (1) ACCESS PARTNER AGREEMENT.—All arrangements between a
451 program licensee and an access partner must be specified in a
452 written access partner agreement between the parties. The
453 agreement must contain the following provisions:
454 (a) The access partner agrees to comply with this section
455 and all rules adopted under this section regarding the
456 activities of access partners.
457 (b) The office has access to the access partner’s books and
458 records pertaining to the access partner’s operations under the
459 agreement with the program licensee in accordance with s.
460 516.45(3) and may examine the access partner pursuant to s.
461 516.45.
462 (2) AUTHORIZED SERVICES.—A program licensee may use the
463 services of one or more access partners as provided in this
464 section. An access partner may perform one or more of the
465 following services from its physical business location for the
466 program licensee:
467 (a) Distributing, circulating, using, or publishing printed
468 brochures, flyers, fact sheets, or other written materials
469 relating to program loans that the program licensee may make or
470 negotiate. The written materials must be reviewed and approved
471 in writing by the program licensee before being distributed,
472 circulated, used, or published.
473 (b) Providing written factual information about program
474 loan terms, conditions, or qualification requirements to a
475 prospective borrower which has been prepared by the program
476 licensee or reviewed and approved in writing by the program
477 licensee. An access partner may discuss the information with a
478 prospective borrower in general terms.
479 (c) Notifying a prospective borrower of the information
480 needed in order to complete a program loan application.
481 (d) Entering information provided by the prospective
482 borrower on a preprinted or an electronic application form or in
483 a preformatted computer database.
484 (e) Assembling credit applications and other materials
485 obtained in the course of a credit application transaction for
486 submission to the program licensee.
487 (f) Contacting the program licensee to determine the status
488 of a program loan application.
489 (g) Communicating a response that is returned by the
490 program licensee’s automated underwriting system to a borrower
491 or a prospective borrower.
492 (h) Obtaining a borrower’s signature on documents prepared
493 by the program licensee and delivering final copies of the
494 documents to the borrower.
495 (i) Disbursing program loan proceeds to a borrower if this
496 method of disbursement is acceptable to the borrower, subject to
497 the requirements of subsection (3). A loan disbursement made by
498 an access partner under this paragraph is deemed to be made by
499 the program licensee on the date that the funds are disbursed or
500 otherwise made available by the access partner to the borrower.
501 (j) Receiving a program loan payment from the borrower if
502 this method of payment is acceptable to the borrower, subject to
503 the requirements of subsection (3).
504 (k) Operating an electronic access point through which a
505 prospective borrower may directly access the website of the
506 program licensee to apply for a program loan.
507 (3) RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
508 (a) A loan payment made by a borrower to an access partner
509 under paragraph (2)(j) must be applied to the borrower’s program
510 loan and deemed received by the program licensee as of the date
511 on which the payment is received by the access partner.
512 (b) An access partner that receives a loan payment from a
513 borrower must deliver or cause to be delivered to the borrower a
514 plain and complete receipt showing all of the information
515 specified in s. 516.43(1)(k) at the time that the payment is
516 made by the borrower.
517 (c) A borrower who submits a loan payment to an access
518 partner under this subsection is not liable for a failure or
519 delay by the access partner in transmitting the payment to the
520 program licensee.
521 (d) An access partner that disburses or receives loan
522 payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
523 maintain records of all disbursements made and loan payments
524 received for at least 2 years.
525 (4) PROHIBITED ACTIVITIES.—An access partner may not:
526 (a) Provide counseling or advice to a borrower or
527 prospective borrower with respect to any loan term.
528 (b) Provide loan-related marketing material that has not
529 previously been approved by the program licensee to a borrower
530 or a prospective borrower.
531 (c) Negotiate a loan term between a program licensee and a
532 prospective borrower.
533 (d) Offer information pertaining to a single prospective
534 borrower to more than one program licensee. However, if a
535 program licensee has declined to offer a program loan to a
536 prospective borrower and has so notified the prospective
537 borrower in writing, the access partner may then offer
538 information pertaining to that borrower to another program
539 licensee with whom it has an access partner agreement.
540 (e) Except for the purpose of assisting a borrower in
541 obtaining a refinance program loan, offer information pertaining
542 to a prospective borrower to any program licensee if the
543 prospective borrower has an outstanding program loan.
544 (f) Charge a borrower any fee for a program loan.
545 (5) DISCLOSURE STATEMENTS.—
546 (a) At the time that the access partner receives or
547 processes an application for a program loan, the access partner
548 shall provide the following statement to the applicant on behalf
549 of the program licensee, in at least 10-point type, and shall
550 request that the applicant acknowledge receipt of the statement
551 in writing:
552
553 Your loan application has been referred to us by
554 ...(name of access partner).... We may pay a fee to
555 ...(name of access partner)... for the successful
556 referral of your loan application. If you are approved
557 for the loan, ...(name of program licensee)... will
558 become your lender. If you have any questions about
559 your loan, now or in the future, you should direct
560 those questions to ...(name of program licensee)... by
561 ...(insert at least two different ways in which a
562 borrower may contact the program licensee).... If you
563 wish to report a complaint about ...(name of access
564 partner)... or ...(name of program licensee)...
565 regarding this loan transaction, you may contact the
566 Division of Consumer Finance of the Office of
567 Financial Regulation at 850-487-9687 or
568 http://www.flofr.com.
569
570 (b) If the loan applicant has questions about the program
571 loan which the access partner is not permitted to answer, the
572 access partner must make a good faith effort to assist the
573 applicant in making direct contact with the program licensee
574 before the program loan is consummated.
575 (6) COMPENSATION.—
576 (a) The program licensee may compensate an access partner
577 in accordance with a written agreement and a compensation
578 schedule that is agreed to by the program licensee and the
579 access partner, subject to the requirements in paragraph (b).
580 (b) The compensation of an access partner by a program
581 licensee is subject to the following requirements:
582 1. Compensation may not be paid to an access partner in
583 connection with a loan application unless the program loan is
584 consummated.
585 2. The access partner’s location for services and other
586 information required in subsection (7) must be reported to the
587 office.
588 3. Compensation paid by the program licensee to the access
589 partner may not exceed $65 per program loan, on average, plus $2
590 per payment received by the access partner on behalf of the
591 program licensee for the duration of the program loan, and may
592 not be charged directly or indirectly to the borrower.
593 (7) NOTICE TO OFFICE.—A program licensee that uses the
594 service of an access partner must notify the office, in a form
595 and manner prescribed by commission rule, within 15 days after
596 entering into a contract with an access partner regarding all of
597 the following:
598 (a) The name, business address, and licensing details of
599 the access partner and all locations at which the access partner
600 will perform services under this section.
601 (b) The name and contact information for an employee of the
602 access partner who is knowledgeable about, and has the authority
603 to execute, the access partner agreement.
604 (c) The name and contact information of one or more
605 employees of the access partner who are responsible for that
606 access partner’s referring activities on behalf of the program
607 licensee.
608 (d) A statement by the program licensee that it has
609 conducted due diligence with respect to the access partner and
610 has confirmed that none of the following apply:
611 1. The filing of a petition under the United States
612 Bankruptcy Code for bankruptcy or reorganization by the access
613 partner.
614 2. The commencement of an administrative or a judicial
615 license suspension or revocation proceeding, or the denial of a
616 license request or renewal, by any state, the District of
617 Columbia, any United States territory, or any foreign country in
618 which the access partner operates, plans to operate, or is
619 licensed to operate.
620 3. A felony indictment involving the access partner or an
621 affiliated party.
622 4. The felony conviction, guilty plea, or plea of nolo
623 contendere, regardless of adjudication, of the access partner or
624 an affiliated party.
625 5. Any suspected criminal act perpetrated in this state
626 relating to activities regulated under this chapter by the
627 access partner.
628 6. Notification by a law enforcement or prosecutorial
629 agency that the access partner is under criminal investigation,
630 including, but not limited to, subpoenas to produce records or
631 testimony and warrants issued by a court of competent
632 jurisdiction which authorize the search and seizure of any
633 records relating to a business activity regulated under this
634 chapter.
635
636 As used in this paragraph, the term “affiliated party” means a
637 director, officer, control person, employee, or foreign
638 affiliate of an access partner; or a person who has a
639 controlling interest in an access partner.
640 (e) Any other information requested by the office, subject
641 to the limitations specified in s. 516.45(3).
642 (8) NOTICE OF CHANGES.—An access partner must provide the
643 program licensee with a written notice sent by registered mail
644 within 30 days after any change is made to the information
645 specified in paragraphs (7)(a)-(c) and within 30 days after the
646 occurrence or knowledge of any of the events specified in
647 paragraph (7)(d).
648 (9) RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
649 licensee is responsible for any act of its access partner if
650 such act is a violation of this chapter.
651 (10) REGISTRY OF ACCESS PARTNERS.—A program licensee shall
652 maintain a registry of all access partners and access partner
653 locations that provide services to the program licensee. The
654 program licensee shall provide a copy of the registry to the
655 office at the time the program licensee files its report
656 pursuant to s. 516.46(1), which registry shall not be published
657 by the office in its report pursuant to s. 516.46(2).
658 (11) RULEMAKING.—The commission shall adopt rules to
659 implement this section.
660 Section 9. Effective January 1, 2020, section 516.45,
661 Florida Statutes, is created to read:
662 516.45 Examinations, investigations, and grounds for
663 disciplinary action.—
664 (1) Notwithstanding any other law, the office shall examine
665 each program licensee that is accepted into the program in
666 accordance with this chapter.
667 (2) Notwithstanding subsection (1), the office may waive
668 one or more branch office examinations if the office finds that
669 such examinations are not necessary for the protection of the
670 public due to the centralized operations of the program licensee
671 or other factors acceptable to the office.
672 (3) The scope of any investigation or examination of a
673 program licensee or access partner must be limited to those
674 books, accounts, records, documents, materials, and matters
675 reasonably necessary to determine compliance with this chapter.
676 (4) A program licensee who violates any applicable
677 provision of this chapter is subject to disciplinary action
678 pursuant to s. 516.07(2). Any such disciplinary action is
679 subject to s. 120.60. The program licensee is also subject to
680 disciplinary action for a violation of s. 516.44 committed by
681 any of its access partners.
682 (5) The office may take any of the following actions
683 against an access partner who violates s. 516.44:
684 (a) Bar the access partner from performing services under
685 this chapter.
686 (b) Bar the access partner from performing services at one
687 or more of its specific locations.
688 (c) Impose an administrative fine on the access partner of
689 up to $5,000 in a calendar year.
690 (6) The commission shall adopt rules to implement this
691 section.
692 Section 10. Effective January 1, 2020, section 516.46,
693 Florida Statutes, is created to read:
694 516.46 Annual reports by program licensees and the office.—
695 (1) By March 15, 2021, and each year thereafter, a program
696 licensee shall file a report with the office on a form and in a
697 manner prescribed by commission rule. The report must include
698 each of the items specified in subsection (2) for the preceding
699 year using aggregated or anonymized data without reference to
700 any borrower’s nonpublic personal information or any program
701 licensee’s or access partner’s proprietary or trade secret
702 information.
703 (2) By January 1, 2022, and each year thereafter, the
704 office shall post a report on its website summarizing the use of
705 the program based on the information contained in the reports
706 filed in the preceding year by program licensees under
707 subsection (1). The office’s report must publish the information
708 in the aggregate so as not to identify data by any specific
709 program licensee. The report must specify the period to which
710 the report corresponds and must include, but is not limited to,
711 the following for that period:
712 (a) The number of applicants approved for a program license
713 by the office.
714 (b) The number of program loan applications received by
715 program licensees, the number of program loans made under the
716 program, the total amount loaned, the distribution of loan
717 lengths upon origination, and the distribution of interest rates
718 and principal amounts upon origination among those program
719 loans.
720 (c) The number of borrowers who obtained more than one
721 program loan and the distribution of the number of program loans
722 per borrower.
723 (d) Of those borrowers who obtained more than one program
724 loan and had a credit score by the time of their subsequent
725 loan, the percentage of those borrowers whose credit scores
726 increased between successive loans, based on information from at
727 least one major credit bureau, and the average size of the
728 increase. In each case, the report must include the name of the
729 credit score, such as FICO or VantageScore, which the program
730 licensee is required to disclose.
731 (e) The income distribution of borrowers upon program loan
732 origination, including the number of borrowers who obtained at
733 least one program loan and who resided in a low-income or
734 moderate-income census tract at the time of their loan
735 applications.
736 (f) The number of borrowers who obtained program loans for
737 the following purposes, based on the borrowers’ responses at the
738 time of their loan applications indicating the primary purpose
739 for which the program loans were obtained:
740 1. To pay medical expenses.
741 2. To pay for vehicle repair or a vehicle purchase.
742 3. To pay bills.
743 4. To consolidate debt.
744 5. To build or repair credit history.
745 6. To finance a small business.
746 7. To pay other expenses.
747 (g) The number of borrowers who self-report that they had a
748 bank account at the time of their loan application and the
749 number of borrowers who self-report that they did not have a
750 bank account at the time of their loan application.
751 (h) For refinance program loans:
752 1. The number and percentage of borrowers who applied for a
753 refinance program loan.
754 2. Of those borrowers who applied for a refinance program
755 loan, the number and percentage of borrowers who obtained a
756 refinance program loan.
757 (i) The performance of program loans as reflected by all of
758 the following:
759 1. The number and percentage of borrowers who experienced
760 at least one delinquency lasting between 7 and 29 days and the
761 distribution of principal loan amounts corresponding to those
762 delinquencies.
763 2. The number and percentage of borrowers who experienced
764 at least one delinquency lasting between 30 and 59 days and the
765 distribution of principal loan amounts corresponding to those
766 delinquencies.
767 3. The number and percentage of borrowers who experienced
768 at least one delinquency lasting 60 days or more and the
769 distribution of principal loan amounts corresponding to those
770 delinquencies.
771 (3) The commission shall adopt rules to implement this
772 section.
773 Section 11. Sections 516.405-516.46, Florida Statutes, are
774 repealed on January 1, 2026, unless reenacted or superseded by
775 another law enacted by the Legislature before that date.
776 Section 12. Except as otherwise expressly provided in this
777 act, this act shall take effect upon becoming a law.
778
779 ================= T I T L E A M E N D M E N T ================
780 And the title is amended as follows:
781 Delete lines 2 - 12
782 and insert:
783 An act relating to responsible finance; amending ss.
784 129.03 and 166.241, F.S.; requiring county and
785 municipal budget officers, respectively, to submit
786 certain information to the Office of Economic and
787 Demographic Research within a specified timeframe;
788 requiring adopted budget amendments and final budgets
789 to remain posted on each entity’s official website for
790 a specified period of time; requiring the Office of
791 Economic and Demographic Research to create a form for
792 certain purposes by a specified date; creating s.
793 516.405, F.S.; creating the Access to Responsible
794 Credit Pilot Program within the Office of Financial
795 Regulation; providing legislative intent; creating s.
796 516.41, F.S.; defining terms; creating s. 516.42,
797 F.S.; requiring a program license from the office for
798 certain actions relating to program loans; providing
799 licensure requirements; requiring a program licensee’s
800 program branch offices to be licensed; providing
801 program branch office license and license renewal
802 requirements; providing circumstances under which the
803 office may deny initial and renewal applications;
804 requiring the Financial Services Commission to adopt
805 rules; creating s. 516.43, F.S.; providing
806 requirements for program licensees, program loans,
807 loan repayments, loan rescissions, interest rates,
808 program loan refinancing, receipts, disclosures and
809 statements provided by program licensees to borrowers,
810 origination fees, insufficient funds fees, and
811 delinquency charges; requiring program licensees to
812 provide certain credit education information to
813 borrowers and to report payment performance of
814 borrowers to consumer reporting agencies; prohibiting
815 the office from approving a program licensee applicant
816 before the applicant has been accepted as a data
817 furnisher by a consumer reporting agency; providing
818 requirements for credit reporting; specifying program
819 loan underwriting requirements for program licensees;
820 prohibiting program licensees from making program
821 loans under certain circumstances; requiring program
822 licensees to seek certain information and
823 documentation; prohibiting program licensees from
824 requiring certain waivers from borrowers; providing
825 applicability; creating s. 516.44, F.S.; requiring all
826 arrangements between program licensees and access
827 partners to be specified in written access partner
828 agreements; providing requirements for such
829 agreements; specifying access partner services that
830 may be used by program licensees; specifying
831 procedures for borrowers’ payment receipts or access
832 partners’ disbursement of program loans; providing
833 recordkeeping requirements; prohibiting specified
834 activities by access partners; providing disclosure
835 statement requirements; providing requirements and
836 prohibitions relating to compensation paid to access
837 partners; requiring program licensees to provide the
838 office with a specified notice after contracting with
839 access partners; defining the term “affiliated party”;
840 requiring access partners to provide program licensees
841 with a certain written notice within a specified time;
842 providing that program licensees are responsible for
843 certain acts of their access partners; requiring
844 program licensees to maintain a registry of all access
845 partners and access partner locations that provide
846 services to the program licensees; requiring program
847 licensees to provide a copy of the registry to the
848 office by a certain time; prohibiting the office from
849 publishing the registry in its report; requiring the
850 commission to adopt rules; creating s. 516.45, F.S.;
851 requiring the office to examine each program licensee;
852 authorizing the office to waive branch office
853 examinations under certain circumstances; limiting the
854 scope of certain examinations and investigations;
855 authorizing the office to take certain disciplinary
856 action against program licensees and access partners;
857 requiring the commission to adopt rules; creating s.
858 516.46, F.S.; requiring program licensees to file an
859 annual report with the office beginning on a specified
860 date; requiring the office to post an annual report on
861 its website by a specified date; specifying
862 information to be contained in the reports; requiring
863 the commission to adopt rules; providing for future
864 repeal of the pilot program; providing effective
865 dates.