The Florida Senate

560.118  Examinations, reports, and internal audits; penalty.--

(1)(a)  The department may conduct an examination of a money transmitter or authorized vendor by providing not less than 15 days' advance notice to the money transmitter or authorized vendor; however, whenever the department has reason to believe that a money transmitter or authorized vendor is engaging in an unsafe and unsound practice, or has violated or is violating any provision of the code, the department may make an examination of such money transmitter or authorized vendor without providing advance notice. The department may accept an audit or examination from any appropriate regulatory agency or from an independent third party with respect to the operations of a money transmitter or an authorized vendor. The department may also make a joint or concurrent examination with any appropriate regulatory agency. The department may furnish a copy of all examinations made of such money transmitter or authorized vendor to the money transmitter and any appropriate regulatory agency provided that such agency agrees to abide by the confidentiality provisions as set forth in chapter 119.

(b)  The department may require an examination or audit of a money transmitter or authorized vendor by an independent third party that has been approved by the department. The cost of such an independent examination or audit shall be directly borne by the money transmitter or authorized vendor.

(c)  The department may recover the costs of a regular examination and supervision of a money transmitter or authorized vendor; however, the department may not recover the costs of more than one examination in any 12-month period unless the department has determined that the money transmitter or authorized vendor is operating in an unsafe or unsound or unlawful manner.

(d)  The department may, by rule, set a maximum per-day examination cost for a regular examination. Such per-day cost may be less than that required to fully compensate the department for costs associated with the examination. For the purposes of this section, "costs" means the salary and travel expenses directly attributable to the field staff examining the money transmitter or authorized vendor, and the travel expenses of any supervisory staff required as a result of examination findings. Reimbursement for such costs incurred under this subsection must be postmarked no later than 30 days after the date of receipt of a notice stating that such costs are due. The department may levy a late payment penalty of up to $100 per day or part thereof that a payment is overdue, unless the late payment penalty is excused for good cause. In excusing any such late payment penalty, the department may consider the prior payment history of the money transmitter or authorized vendor.

(2)(a)  The department may, by rule, require each money transmitter or authorized vendor to submit quarterly reports to the department. The department may require that each report contain a declaration by an officer, or any other responsible person authorized to make such declaration, that the report is true and correct to the best of her or his knowledge and belief. Such report must include such information as the department by rule requires for that type of money transmitter.

(b)  The department may levy an administrative fine of up to $100 per day for each day the report is past due, unless it is excused for good cause. In excusing any such administrative fine, the department may consider the prior payment history of the money transmitter or authorized vendor.

(c)  The department, on or before December 31, 1997, shall evaluate the necessity for continued receipt of the reports required by this subsection, and amend or delete any reporting requirements, based upon the value of the requirement in promoting the purposes of the code.

History.--s. 1, ch. 94-238; s. 1, ch. 94-354; s. 4, ch. 97-59; s. 838, ch. 97-103.