Florida Senate - 2019                          SENATOR AMENDMENT
       Bill No. HB 861
       
       
       
       
       
       
                                Ì7956603Î795660                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: NC/3R          .                                
             05/03/2019 01:35 PM       .                                
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       Senator Rouson moved the following:
       
    1         Senate Amendment to Amendment (300314) (with title
    2  amendment)
    3  
    4         Delete lines 26 - 775
    5  and insert:
    6         (a) The term includes only the following:
    7         1. A bank, as defined in s. 658.12(2).
    8         2. A national bank, as defined in s. 658.12(12).
    9         3. A credit union, as defined in s. 657.002(4).
   10         4. An insurance agent, as defined in s. 626.015(3).
   11         5. An insurance agency, as defined in s. 626.015(10).
   12         6. A tax preparation service.
   13         7. A money services business, as defined in s. 560.103(22).
   14         8. An authorized vendor of a money services business, as
   15  defined in s. 560.103(3).
   16         9. An investment adviser, as defined in s. 517.021(14).
   17         10. A financial services provider.
   18         11. A public accounting firm as defined in s. 473.302(7)
   19         (b) The term does not include a credit service organization
   20  as defined in s. 817.7001 or a loan broker as defined in s.
   21  687.14.
   22         (2)“Consumer reporting agency” has the same meaning as the
   23  term “consumer reporting agency that compiles and maintains
   24  files on consumers on a nationwide basis” in the Fair Credit
   25  Reporting Act, 15 U.S.C. s. 1681a(p).
   26         (3)“Credit score” has the same meaning as in the Fair
   27  Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
   28         (4)“Data furnisher” has the same meaning as the term
   29  “furnisher” in 12 C.F.R. s. 1022.41(c).
   30         (5)“Pilot program” or “program” means the Access to
   31  Responsible Credit Pilot Program.
   32         (6)“Pilot program license” or “program license” means a
   33  license issued under ss. 516.405-516.46 authorizing a program
   34  licensee to make and collect program loans.
   35         (7)“Program branch office license” means a license issued
   36  under the program for each location, other than a program
   37  licensee’s or access partner’s principal place of business:
   38         (a)The address of which appears on business cards,
   39  stationery, or advertising used by the program licensee in
   40  connection with business conducted under this chapter;
   41         (b)At which the program licensee’s name, advertising or
   42  promotional materials, or signage suggests that program loans
   43  are originated, negotiated, funded, or serviced by the program
   44  licensee; or
   45         (c)At which program loans are originated, negotiated,
   46  funded, or serviced by the program licensee.
   47         (8)“Program licensee” means a person who is licensed to
   48  make and collect loans under this chapter and who is approved by
   49  the office to participate in the program.
   50         (9)“Program loan” means a consumer finance loan with a
   51  principal amount of at least $300, but not more than $7,500,
   52  originated pursuant to ss. 516.405–516.46, excluding the amount
   53  of the origination fee authorized under s. 516.43(3).
   54         (10)“Refinance program loan” means a program loan that
   55  extends additional principal to a borrower and replaces and
   56  revises an existing program loan contract with the borrower. A
   57  refinance program loan does not include an extension, a
   58  deferral, or a rewrite of the program loan.
   59         Section 6. Effective January 1, 2020, section 516.42,
   60  Florida Statutes, is created to read:
   61         516.42Requirements for program participation; program
   62  application requirements.—
   63         (1)A person may not advertise, offer, or make a program
   64  loan, or impose any charges or fees pursuant to s. 516.43,
   65  unless the person obtains a pilot program license from the
   66  office.
   67         (2)In order to obtain a pilot program license, a person
   68  must:
   69         (a)1.Be licensed to make and collect consumer finance
   70  loans under s. 516.05; or
   71         2.Submit the application for the license required in s.
   72  516.03 concurrently with the application for the program
   73  license. The application required by s. 516.03 must be approved
   74  and the license under that section must be issued in order to
   75  obtain the program license.
   76         (b)Be accepted as a data furnisher by a consumer reporting
   77  agency.
   78         (c) Demonstrate financial responsibility, experience,
   79  character, or general fitness, such as to command the confidence
   80  of the public and to warrant the belief that the business
   81  operated at the licensed or proposed location is lawful, honest,
   82  fair, efficient, and within the purposes of this chapter.
   83         (d)Not be subject to the issuance of a cease and desist
   84  order; the issuance of a removal order; the denial, suspension,
   85  or revocation of a license; or any other action within the
   86  authority of the office, any financial regulatory agency in this
   87  state, or any other state or federal regulatory agency that
   88  affects the ability of such person to participate in the
   89  program.
   90         (3)(a)A program applicant must file with the office a
   91  digital application in a form and manner prescribed by
   92  commission rule which contains all of the following information
   93  with respect to the applicant:
   94         1.The legal business name and any other name under which
   95  the applicant operates.
   96         2.The applicant’s main address.
   97         3.The applicant’s telephone number and e-mail address.
   98         4.The address of each program branch office.
   99         5.The name, title, address, telephone number, and e-mail
  100  address of the applicant’s contact person.
  101         6.The license number, if the applicant is licensed under
  102  s. 516.05.
  103         7.A statement as to whether the applicant intends to use
  104  the services of one or more access partners under s. 516.44.
  105         8.A statement that the applicant has been accepted as a
  106  data furnisher by a consumer reporting agency and will report to
  107  a consumer reporting agency the payment performance of each
  108  borrower on all program loans.
  109         9.The signature and certification of an authorized person
  110  of the applicant.
  111         (b)A person who desires to participate in the program but
  112  who is not licensed to make consumer finance loans pursuant to
  113  s. 516.05 must concurrently submit the following digital
  114  applications in a form and manner specified in this chapter to
  115  the office:
  116         1.An application pursuant to s. 516.03 for licensure to
  117  make consumer finance loans.
  118         2.An application for admission to the program in
  119  accordance with paragraph (a).
  120         (4)Except as otherwise provided in ss. 516.405-516.46, a
  121  program licensee is subject to all the laws and rules governing
  122  consumer finance loans under this chapter. A program license
  123  must be renewed biennially.
  124         (5)Notwithstanding s. 516.05(3), only one program license
  125  is required for a person to make program loans under ss.
  126  516.405-516.46, regardless of whether the program licensee
  127  offers program loans to prospective borrowers at its own
  128  physical business locations, through access partners, or via an
  129  electronic access point through which a prospective borrower may
  130  directly access the website of the program licensee.
  131         (6)Each branch office of a program licensee must be
  132  licensed under this section.
  133         (7)The office shall issue a program branch office license
  134  to a program licensee after the office determines that the
  135  program licensee has submitted a completed electronic
  136  application for a program branch office license in a form
  137  prescribed by commission rule. The program branch office license
  138  must be issued in the name of the program licensee that
  139  maintains the branch office. An application is considered
  140  received for purposes of s. 120.60 upon receipt of a completed
  141  application form. The application for a program branch office
  142  license must contain the following information:
  143         (a)The legal business name and any other name under which
  144  the applicant operates.
  145         (b)The applicant’s main address.
  146         (c)The applicant’s telephone number and e-mail address.
  147         (d)The address of each program branch office.
  148         (e)The name, title, address, telephone number, and e-mail
  149  address of the applicant’s contact person.
  150         (f)The applicant’s license number, if the applicant is
  151  licensed under this chapter.
  152         (g)The signature and certification of an authorized person
  153  of the applicant.
  154         (8)Except as provided in subsection (9), a program branch
  155  office license must be renewed biennially at the time of
  156  renewing the program license.
  157         (9)Notwithstanding subsection (7), the office may deny an
  158  initial or renewal application for a program license or program
  159  branch office license if the applicant or any person with power
  160  to direct the management or policies of the applicant’s
  161  business:
  162         (a) Fails to demonstrate financial responsibility,
  163  experience, character, or general fitness, such as to command
  164  the confidence of the public and to warrant the belief that the
  165  business operated at the licensed or proposed location is
  166  lawful, honest, fair, efficient, and within the purposes of this
  167  chapter.
  168         (b) Pled nolo contendere to, or was convicted or found
  169  guilty of, a crime involving fraud, dishonest dealing, or any
  170  act of moral turpitude, regardless of whether adjudication was
  171  withheld.
  172         (c)Is subject to the issuance of a cease and desist order;
  173  the issuance of a removal order; the denial, suspension, or
  174  revocation of a license; or any other action within the
  175  authority of the office, any financial regulatory agency in this
  176  state, or any other state or federal regulatory agency that
  177  affects the applicant’s ability to participate in the program.
  178         (10)The commission shall adopt rules to implement this
  179  section.
  180         Section 7. Effective January 1, 2020, section 516.43,
  181  Florida Statutes, is created to read:
  182         516.43Requirements for program loans.—
  183         (1)REQUIREMENTS.—A program licensee shall comply with each
  184  of the following requirements in making program loans:
  185         (a)A program loan must be unsecured.
  186         (b)A program loan must have:
  187         1.A term of at least 120 days, but not more than 36
  188  months, for a loan with a principal balance upon origination of
  189  at least $300, but not more than $3,000.
  190         2.A term of at least 12 months, but not more than 60
  191  months, for a loan with a principal balance upon origination of
  192  more than $3,000.
  193         (c)A borrower may not receive a program loan for a
  194  principal balance exceeding $5,000 unless:
  195         1. The borrower has paid in full the outstanding principal,
  196  interest, and fees on a previous program loan;
  197         2. The borrower’s credit score increased from the time of
  198  application for the borrower’s first consummated program loan;
  199  and
  200         3. The borrower was never delinquent for more than 7 days
  201  on a previous program loan.
  202         (d)A program loan may not impose a prepayment penalty. A
  203  program loan must be repayable by the borrower in substantially
  204  equal, periodic installments, except that the final payment may
  205  be less than the amount of the prior installments. Installments
  206  must be due either every 2 weeks, semimonthly, or monthly.
  207         (e)A program loan must include a borrower’s right to
  208  rescind the program loan by notifying the program licensee of
  209  the borrower’s intent to rescind the program loan and returning
  210  the principal advanced by the end of the business day after the
  211  day the program loan is consummated.
  212         (f)Notwithstanding s. 516.031, the maximum annual interest
  213  rate charged on a program loan to the borrower, which must be
  214  fixed for the duration of the program loan, is 36 percent on
  215  that portion of the unpaid principal balance up to and including
  216  $3,000; 30 percent on that portion of the unpaid principal
  217  balance exceeding $3,000 and up to and including $4,000; and 24
  218  percent on that portion of the unpaid principal balance
  219  exceeding $4,000 and up to and including $7,500. The original
  220  principal amount of the program loan is equal to the amount
  221  financed as defined by the federal Truth in Lending Act and
  222  Regulation Z of the Board of Governors of the Federal Reserve
  223  System. In determining compliance with the maximum annual
  224  interest rates in this paragraph, the computations used must be
  225  simple interest through the application of a daily periodic rate
  226  to the actual unpaid principal balance each day and may not be
  227  added-on interest or any other computations.
  228         (g)If two or more interest rates are applied to the
  229  principal amount of a program loan, the program licensee may
  230  charge, contract for, and receive interest at that single annual
  231  percentage rate that, if applied according to the actuarial
  232  method to each of the scheduled periodic balances of principal,
  233  would produce at maturity the same total amount of interest as
  234  would result from the application of the two or more rates
  235  otherwise permitted, based upon the assumption that all payments
  236  are made as agreed.
  237         (h)The program licensee shall reduce the interest rates
  238  specified in paragraph (f) on each subsequent program loan to
  239  the same borrower by a minimum of 1 percent, up to a maximum of
  240  6 percent, if all of the following conditions are met:
  241         1.The subsequent program loan is originated within 180
  242  days after the prior program loan is fully repaid.
  243         2.The borrower was never more than 15 days delinquent on
  244  the prior program loan.
  245         3.The prior program loan was outstanding for at least one
  246  half of its original term before its repayment.
  247         (i)The program licensee may not induce or permit any
  248  person to become obligated to the program licensee, directly or
  249  contingently, or both, under more than one program loan at the
  250  same time with the program licensee.
  251         (j)The program licensee may not refinance a program loan
  252  unless all of the following conditions are met at the time the
  253  borrower submits an application to refinance:
  254         1.The principal amount payable may not include more than
  255  60 days’ unpaid interest accrued on the previous program loan
  256  pursuant to s. 516.031(5).
  257         2.For a program loan with an original term up to and
  258  including 25 months, the borrower has repaid at least 60 percent
  259  of the outstanding principal remaining on his or her existing
  260  program loan.
  261         3.For a program loan with an original term of more than 25
  262  months, but not more than 60 months, the borrower has made
  263  current payments for at least 9 months on his or her existing
  264  program loan.
  265         4.The borrower is current on payments for his or her
  266  existing program loan.
  267         5.The program licensee must underwrite the new program
  268  loan in accordance with subsection (7).
  269         (k)In lieu of the provisions of s. 687.08, the program
  270  licensee or, if applicable, its approved access partner shall
  271  make available to the borrower by electronic or physical means a
  272  plain and complete receipt of payment at the time that a payment
  273  is made by the borrower. For audit purposes, the program
  274  licensee must maintain an electronic record for each receipt
  275  made available to a borrower, which must include a copy of the
  276  receipt and the date and time that the receipt was generated.
  277  Each receipt made available to the borrower must show all of the
  278  following:
  279         1.The name of the borrower.
  280         2.The name of the access partner, if applicable.
  281         3.The total payment amount received.
  282         4.The date of payment.
  283         5.The program loan balance before and after application of
  284  the payment.
  285         6.The amount of the payment that was applied to the
  286  principal, interest, and fees.
  287         7.The type of payment made by the borrower.
  288         8.The following statement, prominently displayed in a type
  289  size equal to or larger than the type size used to display the
  290  other items on the receipt: “If you have any questions about
  291  your loan now or in the future, you should direct those
  292  questions to ...(name of program licensee)... by ...(at least
  293  two different ways in which a borrower may contact the program
  294  licensee)....”
  295         (2)WRITTEN DISCLOSURES AND STATEMENTS.—
  296         (a)Notwithstanding s. 516.15(1), the loan contract and all
  297  written disclosures and statements may be provided by a program
  298  licensee to a borrower in English or in the language in which
  299  the loan is negotiated.
  300         (b)The program licensee shall provide to a borrower all
  301  the statements required of licensees under s. 516.15.
  302         (3)ORIGINATION FEES.—Notwithstanding s. 516.031, a program
  303  licensee may:
  304         (a)Contract for and receive an origination fee from a
  305  borrower on a program loan. The program licensee may either
  306  deduct the origination fee from the principal amount of the loan
  307  disbursed to the borrower or capitalize the origination fee into
  308  the principal balance of the loan. The origination fee is fully
  309  earned and nonrefundable immediately upon the making of the
  310  program loan and may not exceed the lesser of 6 percent of the
  311  principal amount of the program loan made to the borrower,
  312  exclusive of the origination fee, or $90.
  313         (b)Not charge a borrower an origination fee more than
  314  twice in any 12-month period.
  315         (4)INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
  316  program licensee may:
  317         (a)Notwithstanding s. 516.031, require payment from a
  318  borrower of no more than $20 for fees incurred by the program
  319  licensee from a dishonored payment due to insufficient funds of
  320  the borrower.
  321         (b)Notwithstanding s. 516.031(3)(a)9., contract for and
  322  receive a delinquency charge for each payment in default for at
  323  least 7 days if the charge is agreed upon, in writing, between
  324  the program licensee and the borrower before it is imposed.
  325  Delinquency charges may be imposed as follows:
  326         1. For payments due monthly, the delinquency charge for a
  327  payment in default may not exceed $15.
  328         2. For payments due semimonthly, the delinquency charge for
  329  a payment in default may not exceed $7.50.
  330         3. For payments due every 2 weeks, the delinquency charge
  331  for a payment in default may not exceed $7.50 if two payments
  332  are due within the same calendar month, and may not exceed $5 if
  333  three payments are due within the same calendar month.
  334  
  335  The program licensee, or any wholly owned subsidiary of the
  336  program licensee, may not sell or assign an unpaid debt to an
  337  independent third party for collection purposes unless the debt
  338  has been delinquent for at least 30 days.
  339         (5)CREDIT EDUCATION.—Before disbursement of program loan
  340  proceeds to the borrower, the program licensee must:
  341         (a)Direct the borrower to the consumer credit counseling
  342  services offered by an independent third party; or
  343         (b)Provide a credit education program or seminar to the
  344  borrower. The borrower is not required to participate in such
  345  education program or seminar. A credit education program or
  346  seminar offered pursuant to this paragraph must be provided at
  347  no cost to the borrower.
  348         (6)CREDIT REPORTING.—
  349         (a) The program licensee shall report each borrower’s
  350  payment performance to at least two consumer reporting agencies.
  351         (b)The office may not approve an applicant for the program
  352  license before the applicant has been accepted as a data
  353  furnisher by a consumer reporting agency.
  354         (c)The program licensee shall provide each borrower with
  355  the name or names of the consumer reporting agency or agencies
  356  to which it will report the borrower’s payment history.
  357         (7)PROGRAM LOAN UNDERWRITING.—
  358         (a)The program licensee must underwrite each program loan
  359  to determine a borrower’s ability and willingness to repay the
  360  program loan pursuant to the program loan terms. The program
  361  licensee may not make a program loan if it determines that the
  362  borrower’s total monthly debt service payments at the time of
  363  origination, including the program loan for which the borrower
  364  is being considered and all outstanding forms of credit that can
  365  be independently verified by the program licensee, exceed 50
  366  percent of the borrower’s gross monthly income for a loan of not
  367  more than $3,000, or exceed 36 percent of the borrower’s gross
  368  monthly income for a loan of more than $3,000.
  369         (b)1.The program licensee must seek information and
  370  documentation pertaining to all of a borrower’s outstanding debt
  371  obligations during the loan application and underwriting
  372  process, including loans that are self-reported by the borrower
  373  but not available through independent verification. The program
  374  licensee must verify such information using a credit report from
  375  at least one consumer reporting agency or through other
  376  available electronic debt verification services that provide
  377  reliable evidence of a borrower’s outstanding debt obligations.
  378         2.The program licensee is not required to consider loans
  379  made to a borrower by friends or family in determining the
  380  borrower’s debt-to-income ratio.
  381         (c)The program licensee must verify the borrower’s income
  382  to determine the debt-to-income ratio using information from:
  383         1.Electronic means or services that provide reliable
  384  evidence of the borrower’s actual income; or
  385         2.The Internal Revenue Service Form W-2, tax returns,
  386  payroll receipts, bank statements, or other third-party
  387  documents that provide reasonably reliable evidence of the
  388  borrower’s actual income.
  389         (8)WAIVERS.—
  390         (a)A program licensee may not require, as a condition of
  391  providing the program loan, that the borrower:
  392         1.Waive any right, penalty, remedy, forum, or procedure
  393  provided for in any law applicable to the program loan,
  394  including the right to file and pursue a civil action or file a
  395  complaint with or otherwise communicate with the office, a
  396  court, or any other governmental entity.
  397         2.Agree to the application of laws other than those of
  398  this state.
  399         3.Agree to resolve disputes in a jurisdiction outside of
  400  this state.
  401         (b)A waiver that is required as a condition of doing
  402  business with the program licensee is presumed involuntary,
  403  unconscionable, against public policy, and unenforceable.
  404         (c)A program licensee may not refuse to do business with
  405  or discriminate against a borrower or an applicant on the basis
  406  of the borrower’s or applicant’s refusal to waive any right,
  407  penalty, remedy, forum, or procedure, including the right to
  408  file and pursue a civil action or complaint with, or otherwise
  409  communicate with, the office, a court, or any other governmental
  410  entity. The exercise of a person’s right to refuse to waive any
  411  right, penalty, remedy, forum, or procedure, including a
  412  rejection of a contract requiring a waiver, does not affect any
  413  otherwise legal terms of a contract or an agreement.
  414         (d)This subsection does not apply to any agreement to
  415  waive any right, penalty, remedy, forum, or procedure, including
  416  any agreement to arbitrate a claim or dispute after a claim or
  417  dispute has arisen. This subsection does not affect the
  418  enforceability or validity of any other provision of the
  419  contract.
  420         Section 8. Effective January 1, 2020, section 516.44,
  421  Florida Statutes, is created to read:
  422         516.44Access partners.—
  423         (1)ACCESS PARTNER AGREEMENT.—All arrangements between a
  424  program licensee and an access partner must be specified in a
  425  written access partner agreement between the parties. The
  426  agreement must contain the following provisions:
  427         (a)The access partner agrees to comply with this section
  428  and all rules adopted under this section regarding the
  429  activities of access partners.
  430         (b)The office has access to the access partner’s books and
  431  records pertaining to the access partner’s operations under the
  432  agreement with the program licensee in accordance with s.
  433  516.45(3) and may examine the access partner pursuant to s.
  434  516.45.
  435         (2)AUTHORIZED SERVICES.—A program licensee may use the
  436  services of one or more access partners as provided in this
  437  section. An access partner may perform one or more of the
  438  following services from its physical business location for the
  439  program licensee:
  440         (a)Distributing, circulating, using, or publishing printed
  441  brochures, flyers, fact sheets, or other written materials
  442  relating to program loans that the program licensee may make or
  443  negotiate. The written materials must be reviewed and approved
  444  in writing by the program licensee before being distributed,
  445  circulated, used, or published.
  446         (b)Providing written factual information about program
  447  loan terms, conditions, or qualification requirements to a
  448  prospective borrower which has been prepared by the program
  449  licensee or reviewed and approved in writing by the program
  450  licensee. An access partner may discuss the information with a
  451  prospective borrower in general terms.
  452         (c)Notifying a prospective borrower of the information
  453  needed in order to complete a program loan application.
  454         (d)Entering information provided by the prospective
  455  borrower on a preprinted or an electronic application form or in
  456  a preformatted computer database.
  457         (e)Assembling credit applications and other materials
  458  obtained in the course of a credit application transaction for
  459  submission to the program licensee.
  460         (f)Contacting the program licensee to determine the status
  461  of a program loan application.
  462         (g)Communicating a response that is returned by the
  463  program licensee’s automated underwriting system to a borrower
  464  or a prospective borrower.
  465         (h)Obtaining a borrower’s signature on documents prepared
  466  by the program licensee and delivering final copies of the
  467  documents to the borrower.
  468         (i)Disbursing program loan proceeds to a borrower if this
  469  method of disbursement is acceptable to the borrower, subject to
  470  the requirements of subsection (3). A loan disbursement made by
  471  an access partner under this paragraph is deemed to be made by
  472  the program licensee on the date that the funds are disbursed or
  473  otherwise made available by the access partner to the borrower.
  474         (j)Receiving a program loan payment from the borrower if
  475  this method of payment is acceptable to the borrower, subject to
  476  the requirements of subsection (3).
  477         (k)Operating an electronic access point through which a
  478  prospective borrower may directly access the website of the
  479  program licensee to apply for a program loan.
  480         (3)RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  481         (a)A loan payment made by a borrower to an access partner
  482  under paragraph (2)(j) must be applied to the borrower’s program
  483  loan and deemed received by the program licensee as of the date
  484  on which the payment is received by the access partner.
  485         (b)An access partner that receives a loan payment from a
  486  borrower must deliver or cause to be delivered to the borrower a
  487  plain and complete receipt showing all of the information
  488  specified in s. 516.43(1)(k) at the time that the payment is
  489  made by the borrower.
  490         (c)A borrower who submits a loan payment to an access
  491  partner under this subsection is not liable for a failure or
  492  delay by the access partner in transmitting the payment to the
  493  program licensee.
  494         (d)An access partner that disburses or receives loan
  495  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  496  maintain records of all disbursements made and loan payments
  497  received for at least 2 years.
  498         (4)PROHIBITED ACTIVITIES.—An access partner may not:
  499         (a)Provide counseling or advice to a borrower or
  500  prospective borrower with respect to any loan term.
  501         (b)Provide loan-related marketing material that has not
  502  previously been approved by the program licensee to a borrower
  503  or a prospective borrower.
  504         (c)Negotiate a loan term between a program licensee and a
  505  prospective borrower.
  506         (d)Offer information pertaining to a single prospective
  507  borrower to more than one program licensee. However, if a
  508  program licensee has declined to offer a program loan to a
  509  prospective borrower and has so notified the prospective
  510  borrower in writing, the access partner may then offer
  511  information pertaining to that borrower to another program
  512  licensee with whom it has an access partner agreement.
  513         (e)Except for the purpose of assisting a borrower in
  514  obtaining a refinance program loan, offer information pertaining
  515  to a prospective borrower to any program licensee if the
  516  prospective borrower has an outstanding program loan.
  517         (f)Charge a borrower any fee for a program loan.
  518         (5)DISCLOSURE STATEMENTS.—
  519         (a)At the time that the access partner receives or
  520  processes an application for a program loan, the access partner
  521  shall provide the following statement to the applicant on behalf
  522  of the program licensee, in at least 10-point type, and shall
  523  request that the applicant acknowledge receipt of the statement
  524  in writing:
  525  
  526         Your loan application has been referred to us by
  527         ...(name of access partner).... We may pay a fee to
  528         ...(name of access partner)... for the successful
  529         referral of your loan application. If you are approved
  530         for the loan, ...(name of program licensee)... will
  531         become your lender. If you have any questions about
  532         your loan, now or in the future, you should direct
  533         those questions to ...(name of program licensee)... by
  534         ...(insert at least two different ways in which a
  535         borrower may contact the program licensee).... If you
  536         wish to report a complaint about ...(name of access
  537         partner)... or ...(name of program licensee)...
  538         regarding this loan transaction, you may contact the
  539         Division of Consumer Finance of the Office of
  540         Financial Regulation at 850-487-9687 or
  541         http://www.flofr.com.
  542  
  543         (b)If the loan applicant has questions about the program
  544  loan which the access partner is not permitted to answer, the
  545  access partner must make a good faith effort to assist the
  546  applicant in making direct contact with the program licensee
  547  before the program loan is consummated.
  548         (6)COMPENSATION.—
  549         (a)The program licensee may compensate an access partner
  550  in accordance with a written agreement and a compensation
  551  schedule that is agreed to by the program licensee and the
  552  access partner, subject to the requirements in paragraph (b).
  553         (b)The compensation of an access partner by a program
  554  licensee is subject to the following requirements:
  555         1.Compensation may not be paid to an access partner in
  556  connection with a loan application unless the program loan is
  557  consummated.
  558         2.The access partner’s location for services and other
  559  information required in subsection (7) must be reported to the
  560  office.
  561         3. Compensation paid by the program licensee to the access
  562  partner may not exceed $65 per program loan, on average, plus $2
  563  per payment received by the access partner on behalf of the
  564  program licensee for the duration of the program loan, and may
  565  not be charged directly or indirectly to the borrower.
  566         (7)NOTICE TO OFFICE.—A program licensee that uses the
  567  service of an access partner must notify the office, in a form
  568  and manner prescribed by commission rule, within 15 days after
  569  entering into a contract with an access partner regarding all of
  570  the following:
  571         (a)The name, business address, and licensing details of
  572  the access partner and all locations at which the access partner
  573  will perform services under this section.
  574         (b)The name and contact information for an employee of the
  575  access partner who is knowledgeable about, and has the authority
  576  to execute, the access partner agreement.
  577         (c)The name and contact information of one or more
  578  employees of the access partner who are responsible for that
  579  access partner’s referring activities on behalf of the program
  580  licensee.
  581         (d)A statement by the program licensee that it has
  582  conducted due diligence with respect to the access partner and
  583  has confirmed that none of the following apply:
  584         1.The filing of a petition under the United States
  585  Bankruptcy Code for bankruptcy or reorganization by the access
  586  partner.
  587         2.The commencement of an administrative or a judicial
  588  license suspension or revocation proceeding, or the denial of a
  589  license request or renewal, by any state, the District of
  590  Columbia, any United States territory, or any foreign country in
  591  which the access partner operates, plans to operate, or is
  592  licensed to operate.
  593         3.A felony indictment involving the access partner or an
  594  affiliated party.
  595         4.The felony conviction, guilty plea, or plea of nolo
  596  contendere, regardless of adjudication, of the access partner or
  597  an affiliated party.
  598         5.Any suspected criminal act perpetrated in this state
  599  relating to activities regulated under this chapter by the
  600  access partner.
  601         6.Notification by a law enforcement or prosecutorial
  602  agency that the access partner is under criminal investigation,
  603  including, but not limited to, subpoenas to produce records or
  604  testimony and warrants issued by a court of competent
  605  jurisdiction which authorize the search and seizure of any
  606  records relating to a business activity regulated under this
  607  chapter.
  608  
  609  As used in this paragraph, the term “affiliated party” means a
  610  director, officer, control person, employee, or foreign
  611  affiliate of an access partner; or a person who has a
  612  controlling interest in an access partner.
  613         (e)Any other information requested by the office, subject
  614  to the limitations specified in s. 516.45(3).
  615         (8)NOTICE OF CHANGES.—An access partner must provide the
  616  program licensee with a written notice sent by registered mail
  617  within 30 days after any change is made to the information
  618  specified in paragraphs (7)(a)-(c) and within 30 days after the
  619  occurrence or knowledge of any of the events specified in
  620  paragraph (7)(d).
  621         (9)RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
  622  licensee is responsible for any act of its access partner if
  623  such act is a violation of this chapter.
  624         (10) REGISTRY OF ACCESS PARTNERS.—A program licensee shall
  625  maintain a registry of all access partners and access partner
  626  locations that provide services to the program licensee. The
  627  program licensee shall provide a copy of the registry to the
  628  office at the time the program licensee files its report
  629  pursuant to s. 516.46(1).
  630         (11)RULEMAKING.—The commission shall adopt rules to
  631  implement this section.
  632         Section 9. Effective January 1, 2020, section 516.45,
  633  Florida Statutes, is created to read:
  634         516.45Examinations, investigations, and grounds for
  635  disciplinary action.—
  636         (1)Notwithstanding any other law, the office shall examine
  637  each program licensee that is accepted into the program in
  638  accordance with this chapter.
  639         (2)Notwithstanding subsection (1), the office may waive
  640  one or more branch office examinations if the office finds that
  641  such examinations are not necessary for the protection of the
  642  public due to the centralized operations of the program licensee
  643  or other factors acceptable to the office.
  644         (3)The scope of any investigation or examination of a
  645  program licensee or access partner must be limited to those
  646  books, accounts, records, documents, materials, and matters
  647  reasonably necessary to determine compliance with this chapter.
  648         (4)A program licensee who violates any applicable
  649  provision of this chapter is subject to disciplinary action
  650  pursuant to s. 516.07(2). Any such disciplinary action is
  651  subject to s. 120.60. The program licensee is also subject to
  652  disciplinary action for a violation of s. 516.44 committed by
  653  any of its access partners.
  654         (5)The office may take any of the following actions
  655  against an access partner who violates s. 516.44:
  656         (a)Bar the access partner from performing services under
  657  this chapter.
  658         (b)Bar the access partner from performing services at one
  659  or more of its specific locations.
  660         (c) Impose an administrative fine on the access partner of
  661  up to $5,000 in a calendar year.
  662         (6)The commission shall adopt rules to implement this
  663  section.
  664         Section 10. Effective January 1, 2020, section 516.46,
  665  Florida Statutes, is created to read:
  666         516.46Annual reports by program licensees and the office.—
  667         (1)By March 15, 2021, and each year thereafter, a program
  668  licensee shall file a report with the office on a form and in a
  669  manner prescribed by commission rule. The report must include
  670  each of the items specified in subsection (2) for the preceding
  671  year using aggregated or anonymized data without reference to
  672  any borrower’s nonpublic personal information or any program
  673  licensee’s or access partner’s proprietary or trade secret
  674  information.
  675         (2)By January 1, 2022, and each year thereafter, the
  676  office shall post a report on its website summarizing the use of
  677  the program based on the information contained in the reports
  678  filed in the preceding year by program licensees under
  679  subsection (1). The office’s report must publish the information
  680  in the aggregate so as not to identify data by any specific
  681  program licensee. The report must specify the period to which
  682  the report corresponds and must include, but is not limited to,
  683  the following for that period:
  684         (a)The number of applicants approved for a program license
  685  by the office.
  686         (b)The number of program loan applications received by
  687  program licensees, the number of program loans made under the
  688  program, the total amount loaned, the distribution of loan
  689  lengths upon origination, and the distribution of interest rates
  690  and principal amounts upon origination among those program
  691  loans.
  692         (c)The number of borrowers who obtained more than one
  693  program loan and the distribution of the number of program loans
  694  per borrower.
  695         (d)Of those borrowers who obtained more than one program
  696  loan and had a credit score by the time of their subsequent
  697  loan, the percentage of those borrowers whose credit scores
  698  increased between successive loans, based on information from at
  699  least one major credit bureau, and the average size of the
  700  increase. In each case, the report must include the name of the
  701  credit score, such as FICO or VantageScore, which the program
  702  licensee is required to disclose.
  703         (e)The income distribution of borrowers upon program loan
  704  origination, including the number of borrowers who obtained at
  705  least one program loan and who resided in a low-income or
  706  moderate-income census tract at the time of their loan
  707  applications.
  708         (f)The number of borrowers who obtained program loans for
  709  the following purposes, based on the borrowers’ responses at the
  710  time of their loan applications indicating the primary purpose
  711  for which the program loans were obtained:
  712         1.To pay medical expenses.
  713         2.To pay for vehicle repair or a vehicle purchase.
  714         3.To pay bills.
  715         4.To consolidate debt.
  716         5.To build or repair credit history.
  717         6.To finance a small business.
  718         7.To pay other expenses.
  719         (g)The number of borrowers who self-report that they had a
  720  bank account at the time of their loan application and the
  721  number of borrowers who self-report that they did not have a
  722  bank account at the time of their loan application.
  723         (h)For refinance program loans:
  724         1.The number and percentage of borrowers who applied for a
  725  refinance program loan.
  726         2.Of those borrowers who applied for a refinance program
  727  loan, the number and percentage of borrowers who obtained a
  728  refinance program loan.
  729         (i)The performance of program loans as reflected by all of
  730  the following:
  731         1.The number and percentage of borrowers who experienced
  732  at least one delinquency lasting between 7 and 29 days and the
  733  distribution of principal loan amounts corresponding to those
  734  delinquencies.
  735         2.The number and percentage of borrowers who experienced
  736  at least one delinquency lasting between 30 and 59 days and the
  737  distribution of principal loan amounts corresponding to those
  738  delinquencies.
  739         3.The number and percentage of borrowers who experienced
  740  at least one delinquency lasting 60 days or more and the
  741  distribution of principal loan amounts corresponding to those
  742  delinquencies.
  743         (3)The commission shall adopt rules to implement this
  744  section.
  745         Section 11. Sections 516.405-516.46, Florida Statutes, are
  746  repealed on January 1, 2026, unless reenacted or superseded by
  747  another law enacted by the Legislature before that date.
  748  
  749  ================= T I T L E  A M E N D M E N T ================
  750  And the title is amended as follows:
  751         Delete lines 848 - 864
  752  and insert:
  753         office by a certain time; requiring the commission to
  754         adopt rules; creating s. 516.45, F.S.; requiring the
  755         office to examine each program licensee; authorizing
  756         the office to waive branch office examinations under
  757         certain circumstances; limiting the scope of certain
  758         examinations and investigations; authorizing the
  759         office to take certain disciplinary action against
  760         program licensees and access partners; requiring the
  761         commission to adopt rules; creating s. 516.46, F.S.;
  762         requiring program licensees to file an annual report
  763         with the office beginning on a specified date;
  764         requiring the office to post an annual report on its
  765         website by a specified date; specifying information to
  766         be contained in the reports; requiring the commission
  767         to adopt rules; providing for future repeal of the
  768         pilot program; providing effective