Notice of Proposed Rule

DEPARTMENT OF FINANCIAL SERVICES
Finance
RULE NO: RULE TITLE
69V-560.102: Application Forms, Procedures and Requirements
69V-560.103: Definitions
69V-560.104: Application Fees
69V-560.105: Regulatory Standards for Evaluating Applications
69V-560.107: Registration of Locations and Authorized Vendors
69V-560.108: Declaration of Intent to Engage in Deferred Presentment Transactions
69V-560.201: Requirements
69V-560.202: Regulatory Standards for Evaluating Notices of Change of Control
69V-560.301: Scope
69V-560.302: Renewal Deadlines, Late Fees and Requirements
69V-560.303: Renewal Application Forms, Procedures and Requirements
69V-560.304: Renewal Fees
69V-560.402: Bond
69V-560.602: Quarterly Reports to Be Filed by Check Cashers
69V-560.603: Quarterly Reports to Be Filed by Foreign Currency Exchangers
69V-560.604: Quarterly Reports to Be Filed by Funds Transmitters
69V-560.605: Quarterly Reports to Be Filed by Payment Instrument Sellers
69V-560.606: Annual Filing of Financial Statements by Part II Registrants
69V-560.607: Quarterly Reports to Be Filed by Deferred Presentment Providers
69V-560.906: Consumer Credit Counseling Services
PURPOSE AND EFFECT: Chapter 2006-213, Laws of Florida, contains amendments to Chapter 560, Florida Statutes, relating to the licensing and regulation of money transmitters. The proposed rules implement and reflect the statutory changes.
SUMMARY: Under Chapter 2006-213, Laws of Florida, the Financial Services Commission was granted rulemaking authority to require money transmitter applicants and registrants to amend any information contained in any application when the information becomes inaccurate for any reason, require registrants to file a new application when proposing a change of control of 25 percent or greater ownership in the registrant, and simply the registration renewal process. The forms referenced in the rules incorporate these legislative changes in addition to streamlining the forms by incorporating the biographical summary and instructions within the business application forms. Additional changes to the business forms include creating a Disclosure Reporting Page for applicants to provide detailed information concerning any affirmative responses to disclosure questions. Other forms that needed instructional guidance have now had the instructions embedded within the form itself.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 215.405, 560.105, 560.118, 560.123, 560.205, 560.208, 560.209, 560.403 FS.
LAW IMPLEMENTED: 215.405, 560.102, 560.103, 560.109, 560.114, 560.118, 560.123, 560.127, 560.129, 560.204, 560.205, 560.206, 560.207, 560.208, 560.209, 560.210, 560.303(1), 560.305, 560.306, 560.307, 560.308, 560.403 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Gregory C. Oaks, Financial Administrator, 200 East Gaines Street, 6th Floor, The Fletcher Building, Tallahassee, Florida 32399-0375, (850)410-9805

THE FULL TEXT OF THE PROPOSED RULE IS:

69V-560.102 Application Forms, Procedures and Requirements.

(1) Forms. All forms referenced in this rule are available on the Office of Financial Regulation’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376 Application forms for all registrations covered by these rules may be obtained at no cost from the Office of Financial Regulation’s website (www.dbf.state.fl.us), by telephone, or in writing. All applications must be in the format required by the Office of Financial Regulation. Requests for forms should be sent to: Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.

(2)(a) Applications in the format required by the Office of Financial Regulation, accompanied by the prescribed fee for the requested registration, shall be filed with the Office of Financial Regulation at the address in subsection (1) above. No application will be deemed filed or received unless accompanied by the proper filing fee; or

(b) In lieu of filing the required application forms, an applicant may file the application information electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3)(a) All applicants for registration must file a completed application Form OFR-560 MT-5-01, Application to Register as a Money Transmitter Pursuant to Chapter 560, F.S., effective 1/1/2007 10/01, which is hereby incorporated by reference.

(b) All applicants for registration who propose to engage in deferred presentment transactions as defined in Section 560.402, F.S., shall file a completed Form OFR-560-03 MT-3-01, Declaration of Intent to Engage in Deferred Presentment Transactions, effective 1/1/2007 10/01, which is hereby incorporated by reference, together with the required nonrefundable fee for deferred presentment providers. Applicants must be registered pursuant to Part II or Part III of Chapter 560, F.S., in order to engage in deferred presentment transactions.

(c) All applicants for registration shall submit a completed Form OFR-560-02 MT-2-01, Location Notification Form, effective 1/1/2007 10/01, which is hereby incorporated by reference, for each proposed “location” as defined in Rule 69V-560.103, F.A.C., not including the applicant’s primary business location, together with the required nonrefundable fee.

(d) All applicants for registration as a payment instrument seller or funds transmitter shall file audited financial statements prepared in accordance with generally accepted accounting principles that are dated within 90 days prior to the date the application is received by the Office of Financial Regulation, and if available, audited financial statements for the immediately preceding 2-year period. In cases where the applicant is a wholly owned subsidiary of another corporation, the parent's consolidated audited financial statements may be submitted to satisfy this requirement. If the date of the application is more than 90 days after the applicant's fiscal year-end audited financial statements, the applicant shall file unaudited financial statements reviewed by an independent certified public accountant dated within 90 days of the date of the application for the period subsequent to the audit report, together with the audited financial statements for the most recent fiscal year. If the applicant has been in business less than 12 months, and has not prepared an audited financial statement, the applicant may file unaudited financial statements reviewed by an independent certified public accountant.

(4)(a) The responsible person who will be in charge of the applicant's business activities in this state, and each existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, executive officer, partner principal, member, joint venturer, and all controlling shareholders shall complete the Biographical Summary in Form OFR-560-01 MT-7-01, Biographical Form, effective 10/01, which is hereby incorporated by reference in subsection (3). If any of the foregoing individuals are non-U.S. Citizens, Addendum (1) to the Biographical Summary Form shall also be completed and filed.

(b) An existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, executive officer, partner, member, joint venturer, controlling shareholder, and responsible person shall review and attest to the accuracy of the forms submitted on his or her behalf.

(5) The responsible person who will be in charge of the applicant’s business activities in this state, and each existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, executive officer, principal, partner, member, joint venturer, and all controlling shareholders, unless exempt under Section 560.205(1) or 560.306(1), F.S., shall file a completed Florida Fingerprint Card (FL922720Z FL921050Z), effective________, which is hereby incorporated by reference, accompanied by a nonrefundable $47 processing fee. If the Federal Bureau of Investigation cannot process the fingerprint card because of illegible fingerprints, a second card must be submitted. If that card cannot be processed, it will be necessary to submit a third card along with a nonrefundable fee of $24 to cover the cost of processing the card. The Office of Financial Regulation reserves the right to require as many submissions of fingerprint cards and fees as may be necessary until such time as the card can be properly processed by the appropriate law enforcement agency. Any applicant claiming the statutory exemption from the fingerprint requirement shall submit evidence to support its claim to the exemption.

(6) No change.

(7) Request for Additional Information. All information the applicant wants to present to support the application should be submitted with the original filing. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application. The additional information must be received by the Office of Financial Regulation within forty-five (45) days from the date of the request. Failure to respond within forty-five (45) days from the date of the request shall be grounds for the Office of Financial Regulation to deny the application for failure to complete the application, and the application may be denied pursuant to subsection 120.60(1), F.S.

(8) Refunds. If the application is withdrawn or denied, all fees are nonrefundable.

(9) Withdrawal of Application. An application may be withdrawn if the applicant submits a written request for same that is approved by the Office of Financial Regulation before the application is approved or denied.

(10)(8)(a) Amendment of Application. If the information contained in any application for a registration as a money transmitter, or in any amendment thereto, becomes inaccurate for any reason, the registrant shall file an amendment correcting such information within thirty (30) days of the change on Form OFR-560-01, which is incorporated by reference in subsection (3). A request to amend an application must be in writing and shall be submitted to the Office of Financial Regulation at the address in subsection (1).

(b) Provided the Office of Financial Regulation has not already docketed a Notice of Intent to Deny the Application, an applicant may amend the application after receiving written permission from the Office of Financial Regulation following the Office of Financial Regulation's review of and determination that the applicant's written request to amend:

1. through 4. No change.

5. May Shall not be denied pursuant to paragraph (c), if the request to amend makes a material change to the application.

(c) A request to amend which makes a material change to the application or to the Office of Financial Regulation's evaluation of the application is a violation of subsection (7) and the Office of Financial Regulation may shall deny the application in accordance with Section 560.114(1)(a), F.S., unless the applicant has made a good faith effort to comply with the statutory requirements of Chapter 560, F.S., and the rules of this chapter. Material changes include:

1. No change.

2. The substitution or addition of a director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer, partner, member, joint venturer, responsible person, or controlling shareholder;

3. through 5. No change.

(d) No change.

(9) When an application is denied on the grounds set forth above, the applicant shall be duly notified.

Specific Authority 215.405, 560.105(3), 560.118(2), 560.205(1), 560.205(2), 560.403(1) FS. Law Implemented 215.405, 560.102, 560.118, 560.129, 560.204, 560.205, 560.303(1), 560.305, 560.306, 560.307, 560.403 FS. History–New 9-24-97, Amended 11-4-01, 12-11-03, Formerly 3C-560.102, Amended________.

 

69V-560.103 Definitions.

For the purposes of this chapter, the following definitions shall apply:

(1) through (5) No change.

(6) “Financial Statements” shall be defined as those reports, schedules and statements, prepared in accordance with United States generally accepted accounting principles Generally Accepted Accounting Principles, which contain at least the following information:

(a) Statement of Financial Condition (Balance Sheet); and

(b) Statement of Income;.

(c) Statement of Cash Flows; and

(d) Statement of Changes in Stockholders’ Equity.

(7) through (9) No change.

(10) “Net worth” means an excess of assets over liabilities, as determined by United States generally accepted accounting principles; for purposes of this subject:

(a) Assets shall not include:

1. Prepaid expenses, other than items properly classified as current assets under generally accepted accounting principles;

2. Goodwill;

3. Franchise rights;

4. Organizational expenses;

5. Patents;

6. Copyrights;

7. Marketing rights;

8. Un-amortized debt discount and expense;

9. Assets of an intangible nature;

10. A home, home furnishings, automobiles, and any other personal items not readily; marketable, if the money transmitter is an individual;

11. A corporation’s advances or loans to shareholders or officers; and

12. A partnership’s advance or loans to partners.

(b) Liabilities that can be shown to be collateralized by assets (including capital assets such as equipment, property, etc.) that are owned by the money transmitter are excluded from the computation. Likewise, liabilities owed to the owners or shareholders of the money transmitter are excluded. All other types of liabilities, including non-collateralized short and long term debt, must be included in the computation.

(11)(10) “Person” means any individual, corporation, partnership, association, trust, or other group, however organized.

(12) “Publicly Traded” means that the stock is currently traded on a national securities exchange registered with the U.S. Securities and Exchange.

(13)(11) “Registrant” means a person registered by the Office of Financial Regulation pursuant to Part II or Part III of the Money Transmitters’ Code.

(14)(12) “Responsible person” means any individual who has principal active management authority over the business as defined by Section 560.103(18), F.S.

(15)(13) “Unaudited Financial Statements” shall be defined as those financial statements prepared in accordance with Generally Accepted Accounting Principles and reviewed by a Certified Public Accountant, but not accompanied by the statements and representations as set forth in paragraphs (3)(b), (c), and (d) of this rule.

(16)(14)Holiday” means such days as are designated by Section 110.117, F.S.

(17)(15) “Gross Income” means Gross Revenue (Sales) – Cost of Goods Sold.

Specific Authority 560.105(2) FS. Law Implemented 560.103, 560.118(2), 560.205(3), (4), 560.208 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.103, Amended 9-14-04, ________.

 

69V-560.104 Application Fees.

(1) through (4) No change.

(5) Applicable fees for all initial applications may be paid by the applicant electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

Specific Authority 560.105(3) FS. Law Implemented 560.205(2), 560.306, 560.307, 560.403 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.104, Amended________.

 

69V-560.105 Regulatory Standards for Evaluating Applications.

(1) No change.

(2) The Office of Financial Regulation shall conduct background investigations on the responsible person who will be in charge of all the applicant's business activities in this state and each existing or proposed director, chief executive officer, chief financial officer, chief operations officer, chief legal officer, chief compliance officer executive officer, principal, member, partner, joint venturer, and all controlling shareholders to determine whether the qualifications and requirements for registration have been met.

Specific Authority 560.105(3) FS. Law Implemented 560.109, 560.114, 560.205, 560.206, 560.306 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.105, Amended________.

 

69V-560.107 Registration of Locations and Authorized Vendors.

(1) Every registrant shall designate all locations and authorized vendors operating prior to October 1, 2001 by:

(a) Filing all of the information required by Form OFR-MT-2-01 (Location Notification Form) with the Office of Financial Regulation on or before December 1, 2001 for all locations and authorized vendors. After December 1, 2001, the registrant shall file all location information in accordance with subsection (2) of this rule; and

(b) No fee shall be required for the registration of locations and authorized vendor locations in operation prior to October 1, 2001 that have been designated by the registrant in accordance with the provisions of paragraph (a).

(1)(2) Every registrant that commences operations at locations other than the main office or through authorized vendors in this state on or after October 1, 2001 shall:

(a) File a completed Form OFR-560-02 MT-2-01 (Location Notification Form) for each location, which must be received by the Office of Financial Regulation within sixty (60) calendar days from the date that a location opens or an authorized vendor commences operations on behalf of the registrant on or after October 1, 2001;

(b) Demonstrate the required net worth for Part II registrants in accordance with the provisions of subsection 69V-560.606(4), F.A.C.; and

(b)(c) Submit the required $50 fee for each location.

(2)(3) Every registrant shall be responsible for filing a completed Form OFR-560-02 MT-2-01 within sixty (60) calendar days from the date that a location closes or authorized vendor either ceases operation or has its authority to act on the registrant's behalf terminated by such registrant.

(4) In lieu of filing Form OFR-MT-2-01, a registrant may notify the Office of Financial Regulation of the opening or closing of locations and authorized vendors electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

For purposes of this section, the Note: The sixty (60) day period referenced in subsections (1)(2) and (2)(3) above is solely for the filing of the required form and payment of the required nonrefundable fee. A registrant must file Form OFR-560-02 notify the Office of Financial Regulation and pay the required fee for all locations of the registrant and authorized vendors that commence operations on behalf of the registrant. If the registrant for any reason closes a location or terminates the relationship with such authorized vendor within the first sixty (60) days, it will not relieve the registrant of the obligation to comply notify the Office of Financial Regulation in accordance with the provisions of this subsection. Form OFR-560-02 is incorporated by reference in subsection 69V-560.102(3), F.A.C.

Specific Authority 560.105(3), 560.208(3) FS. Law Implemented 560.205, 560.208, 560.307 FS. History–New 11-4-01, Formerly 3C-560.107, Amended________.

 

69V-560.108 Declaration of Intent to Engage in Deferred Presentment Transactions.

(1) All registrants actively registered pursuant to Part II or Part III of Chapter 560, F.S., before October 1, 2001 and who are acting as a deferred presentment provider as defined by Section 560.402, F.S., shall file a completed Form OFR-MT-3-01 (Declaration of Intent to Engage in Deferred Presentment Transactions). This form and the required nonrefundable fee must be received by the Office of Financial Regulation by November 30, 2001.

(1)(2) After October 1, 2001, any A person who seeks to act as a deferred presentment provider as defined in Section 560.402, F.S., shall:

(a) Be registered pursuant to Part II or Part III of Chapter 560, F.S., and must at all times thereafter remain registered pursuant to Part II or Part III; and

(b) Submit a completed Form OFR-560-03 MT-3-01 (Declaration of Intent to Engage in Deferred Presentment Transactions) together with the required nonrefundable fee for deferred presentment providers.

(2)(3) A registrant may not convey authority to an authorized vendor to engage in deferred presentment transactions on behalf of the registrant.

(3) A registrant shall terminate authority to engage in deferred presentment transactions by submitting Form OFR-560-03 (Declaration of Intent to Engage in Deferred Presentment Transactions) within 30 days of the registrant ceasing deferred presentment transactions.

(4) Form OFR-560-03 is incorporated by reference in subsection 69V-560.102(3), F.A.C. In lieu of filing Form OFR-MT-3-01 (Declaration of Intent to Engage in Deferred Presentment Transactions), such declaration of intent may be made electronically by following the applicable instructions on the Office of Financial Regulation’s website (www.dbf.state.fl.us) on the Internet.

Specific Authority 560.105(3), 560.403 FS. Law Implemented 560.403 FS. History–New 11-4-01, Formerly 3C-560.108, Amended ________.

 

69V-560.201 Requirements.

Notices of change of control will be processed pursuant to Section 560.127, F.S.

(1) Where a person or group of persons directly or indirectly or acting by or through one or more persons, proposes to acquire a controlling interest in a money transmitter registrant, such person or group shall file with the Office, no later than thirty (30) days prior to the date of such acquisition, a new application pursuant to Rule 69V-560.102, F.A.C., together with all required exhibits and fees.  Additionally, the applicant shall file with the Office, at the time the new application is filed, a notice of termination of registration of the acquired entity on Form OFR-560-01, effective upon disposition of the new application by the Office.  Form OFR-560-01 is incorporated by reference in subsection 69V-560.102(3), F.A.C. Regardless of whether the change of control involves a registered money transmitter, an Application to Register as a Money Transmitter (Form OFR-MT-5-01) shall be filed. All information requested by that form shall be submitted to the Office of Financial Regulation, along with the required nonrefundable application fee as set forth in Rule 69V-560.104, F.A.C. The written notification should provide the Office of Financial Regulation with information concerning the change of control, including the proposed effective date and any significant changes to be made to the registrant's present business.

(2)  A registrant required to file a new application as a result of an acquisition of a controlling interest pursuant to Section 560.126(2), F.S., must also file new location forms (Form OFR-560-02) and applicable fees for all existing locations on file with the office at the time of filing the new application in subsection (1) and a Declaration of Intent to Engage in Deferred Presentment Transactions (Form OFR-560-03) and applicable fee if currently engaged in Deferred Presentment Transactions.  Forms OFR-560-02 and OFR-560-03 are incorporated by reference in subsection 69V-560.102(3), F.A.C. The responsible person who will be in charge of the applicant's business activities in this state, each existing or proposed director, executive officer, principal, member and all controlling shareholders, unless exempt under Section 560.205(1) or 560.306(1), F.S., shall file a completed Florida Fingerprint Card (FL921050Z) accompanied by a $47 nonrefundable processing fee. No fingerprint card will be required from any person described above who has been reported to the Office of Financial Regulation by the registrant and for whom the Office of Financial Regulation has received the required Biographical Form (Form OFR-MT-7-01) prior to October 1, 2001. If the Federal Bureau of Investigation cannot process the fingerprint card because of illegible fingerprints, a second card must be submitted. If that card cannot be processed, it will be necessary to submit a third card along with a nonrefundable fee of $24 to cover the cost of processing the card. The Office of Financial Regulation reserves the right to require as many submissions of such fingerprint cards and fees as may be necessary until such time as the card can be properly processed by the appropriate law enforcement agency. Any applicant claiming the statutory exemption from the fingerprint requirement shall submit evidence to support its claim to the exemption.

(3) The office shall waive the requirement for a registrant to file a new application pursuant to Section 560.126(2), F.S.: An original of all parts of the application shall be filed, together with the appropriate filing fee at the following address: Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.

(a) When a person or group of persons proposing to purchase or acquire a controlling interest in a registrant has previously filed the information required in Sections 560.205 and 560.306, F.S., with a money transmitter currently registered with the office, provided that such person is currently affiliated with the money transmitter; or

(b) When the acquirer is currently registered with the office as a money transmitter.

(4) For purposes of this chapter “control” shall have the meaning defined in Section 560.127, F.S.

Specific Authority 215.405, 560.105(3), 560.123(2) FS. Law Implemented 215.405, 560.127, 560.204, 560.205, 560.303(1), 560.305, 560.306, 560.307 FS. History–New 9-24-97, Amended 11-4-01, 12-11-03, Formerly 3C-560.201, Amended________.

 

69V-560.202 Regulatory Standards for Evaluating Notices of Change of Control.

When a notice of change of control of a registered money transmitter is filed, it is the applicant's responsibility to prove that the statutory criteria warranting the grant of authority are met. The Office of Financial Regulation shall conduct an investigation pursuant to Section 560.127(3), F.S. If the Office of Financial Regulation determines that any one of the criteria set forth in Section 560.127(3)(a) or (b), F.S., is not met, or any act in Section 560.114, F.S., is or has been committed, the Office of Financial Regulation may deny the change in control. Additionally, should the change of control involve an unregistered money transmitter and/or unregistered person(s), the Office of Financial Regulation will conduct an investigation pursuant to Section 560.206 and/or 560.306, F.S. The Office of Financial Regulation shall deny the application in accordance with Section 560.114, F.S.

Specific Authority 560.105(3) FS. Law Implemented 560.109, 560.114, 560.127, 560.205, 560.206, 560.306 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.20, Repealed ________.

 

69V-560.301 Scope.

These rules contain the specific procedures for filing and evaluating renewal applications for registered payment instrument sellers, funds transmitters, check cashers, foreign currency exchangers, deferred presentment providers, locations and authorized vendors.

Specific Authority 560.105(3) FS. Law Implemented 560.207, 560.308, 560.403 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.301, Repealed________.

 

69V-560.302 Renewal Fees, Deadlines, Late Fees and Requirements.

(1)(a) Payment Instrument Seller or a Funds Transmitter (Part II registrant): Registrations issued to Part II registrants shall remain effective through April 30 of the second year following the date of issuance of the registration, not to exceed 24 months, unless during such period the registration is surrendered, suspended, or revoked.

(b) A renewal of a funds transmitter or payment instrument seller registration (Part II registrant) shall include a nonrefundable renewal fee of $1,000.00, plus $50.00 for each location being renewed, including branch offices and authorized vendors, operating within this state, or a total 2-year nonrefundable renewal fee of $20,000.00 to renew all such locations operating within this state. The $50.00 location renewal fee shall not apply to the registrant's primary business address.

(c)(b) All renewal fees applications for Part II registrants must be received by the office on or filed on or after January 1 of the year in which the existing registration expires, but before the expiration date of April 30. If the renewal fees are received a renewal application is filed within 60 calendar days after the expiration date of an existing registration, the renewal application and renewal fees must shall be accompanied by a nonrefundable late fee of $500.00. If the registrant has not filed the requisite renewal fees and late fees a renewal application within 60 calendar days after the expiration date of an existing registration, the registration shall expire and a new application must shall be filed pursuant to Section 560.205, F.S.

(2)(a) Check Casher or Foreign Currency Exchanger (Part III registrant): Registrations issued to Part III registrants shall remain in effect through the remainder of the second calendar year (December 31) following the date the registration was issued. Thereafter, renewals are issued for a 24-month period from December 31 of the year the registration or renewal expires, unless during such period the registration is surrendered, suspended, or revoked.

(b) A renewal of a check casher or foreign currency exchanger registration (Part III registrant) shall include a nonrefundable renewal fee of $500.00, plus $50.00 for each location being renewed, including branch offices and authorized vendors, operating within this state, or a total 2-year nonrefundable renewal fee of $20,000.00 to renew all such locations operating within this state. The $50.00 location renewal fee shall not apply to the registrant's primary business address.

(c)(b) All renewal fees applications for Part III registrants must be received by the office on or before the expiration date of filed on or after June 1 of the year in which the existing registration expires, but not later than December 31 of that year. If the renewal fees are received A renewal application, renewal fees, and a late fee of $250.00 must be filed within 60 calendar days after the expiration date of an existing registration, the renewal fees must be accompanied by a non-refundable late fee of $250.00 in order for the registration to be reinstated. If the registrant has not filed the requisite renewal fees and late fees a renewal application within 60 calendar days after the expiration date of an existing registration, the registration shall expire and a new application must be filed pursuant to Section 560.307, F.S.

(3)(a) Deferred Presentment Providers (Part IV): The “Declaration of Intent to Engage in Deferred Presentment Transactions” shall expire concurrently with the registrant's Part II or Part III registration. A registrant who intends to continue to engage in deferred presentment transactions must concurrently renew their registration pursuant to Part II or Part III in order to remain qualified to act as a deferred presentment provider. A declaration of intent non-refundable renewal fee of $1000 must be received by the Office on or before the expiration date of the registrant’s Part II or Part III registration. The renewal of a deferred presentment provider’s “Declaration of Intent to Engage in Deferred Presentment Transactions” shall be indicated on Form OFR-MT-6-01 (Application to Renew Registration as a Money Transmitter Pursuant to Chapter 560, F.S.), and submitted together with the required nonrefundable renewal fee for a deferred presentment provider.

(b) If the declaration of intent renewal fee is received A renewal declaration of intent and fee, and a late fee of $500.00, must be filed within 60 calendar days after the expiration of the registrant’s Part II or Part III an existing registration, the declaration of intent renewal fee must be accompanied by a non-refundable late fee of $500.00 in order for the declaration of intent to be reinstated. If the registrant has not filed the requisite declaration of intent renewal fee and late fee a renewal declaration of intent within 60 calendar days after the expiration date of the registrant’s Part II or Part III an existing registration, the declaration of intent shall expire and a new declaration must be filed pursuant to Chapter 560,403, F.S.

(4) If any date in this rule falls on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S. weekend or holiday, the renewal application together with the required renewal fees and any applicable late fees must be received by the Office of Financial Regulation by the close of business on the next business day.

Specific Authority 560.105(3) FS. Law Implemented 560.206, 560.207, 560.308, 560.403 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.302, Amended________.

 

69V-560.303 Renewal Application Forms, Procedures and Requirements.

(1) Applicants for renewal of registration must complete Form OFR-MT-6-01, Application to Renew Registration as a Money Transmitter, effective 10/01, which is hereby incorporated by reference. Copies of such forms can be obtained by request from the Office of Financial Regulation at the address specified in subsection (5) below.

(2) The renewal application shall include any substantial changes that have occurred to registrant since its last application to the Office of Financial Regulation. These substantial changes include, but shall not be limited to, a change or an addition to an executive officer, director, principal, member, controlling shareholders, or responsible person/manager. A completed Biographical Form OFR-MT-7-01, shall be submitted for each new individual, and, in the case of a non-U.S. citizen, Addendum (1) to Form OFR-MT-7-01, shall be attached to the renewal application. The fingerprint cards required by subsection 69V-560.102(5), F.A.C., and the Biographical Form (Form OFR-MT-7-01) shall be submitted only for those person(s) who have not previously submitted such documents in connection with the registrant. Other changes, such as any new businesses acquired, change in address, change in name, material litigation, criminal convictions, etc., shall be reported, as required on the renewal form.

(3) If, as a result of subsection (1) above, a Biographical Form is required on any individual, the individual shall review and attest to the accuracy of the form.

(4)(a) An original of all parts of the application shall be filed, together with the appropriate filing fee as specified in Rule 69V-560.303, F.A.C., at the following address: Division of Securities and Finance, Office of Financial Regulation of Banking and Finance, 101 East Gaines Street, Tallahassee, Florida 32399-0350.

(b) In lieu of filing the required forms, a registrant may renew its registration, locations, authorized vendors, and “Declaration of Intent to Engage in Deferred Presentment Transactions” electronically at the time of renewal by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(5) Processing. Applications to renew registration as a money transmitter shall be processed, where applicable, pursuant to the provisions of Rules 69V-560.101 through 69V-560.108, F.A.C.

Specific Authority 560.105(3) FS. Law Implemented 560.114(1), 560.205(2), (3), 560.207, 560.305, 560.308 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.303, Repealed ________.

 

69V-560.304 Renewal Fees.

(1) A renewal application for funds transmitter or payment instrument seller registration (Part II registrant) shall be accompanied by a nonrefundable renewal fee of $1,000.00, plus $50.00 for each location being renewed, including branch offices and offices of authorized vendors, operating within this state, or a total 2-year nonrefundable fee of $20,000.00 to register all such locations operating within this state. The $50.00 location fee shall not apply to the registrant's primary business address.

(2) A renewal application for check casher or foreign currency exchanger registration (Part III registrant) shall be accompanied by a renewal fee of $500.00, plus $50.00 for each location being renewed, including branch offices and offices of authorized vendors, operating within this state, or a total of 2-year nonrefundable fee of $20,000.00 to register all such locations operating within this state. The $50.00 location fee shall not apply to the registrant's primary business address.

(3) Every deferred presentment provider shall renew its Declaration of Intent to Engage in Deferred Presentment Transactions to remain a deferred presentment provider at the same time as they renew their Part II or Part III registration accompanied by the required nonrefundable fee of $1,000.00.

(4) All fees required to renew the registration of a money transmitter may be paid electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

Specific Authority 560.105(3) FS. Law Implemented 560.207, 560.308, 560.403 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.304, Repealed________.

 

69V-560.402 Bond.

(1) No change.

(2) The corporate surety bond must be issued by a bonding company or insurance company authorized to do business in this state.  The originally executed Form OFR-560-06, Money Transmitter Surety Bond Form, effective 1/1/2007, which is hereby incorporated by reference, shall be maintained on file with the Office at all times.  The bond form must be executed by the bonding company and the applicant.

(3) All items pledged in lieu of a corporate surety bond must be held or deposited at a federally insured financial institution as defined by Section 655.005(1)(h), F.S. The originally executed Form OFR-560-05, Pledge Agreement, effective 1/1/2007, which is hereby incorporated by reference, shall be maintained on file with the Office at all times. The Pledge Agreement bond form included in Form OFR-MT-5-01, must be executed by the federally insured financial institution and the applicant.

(4) No change.

(5)(a) The amount of the surety bond, collateral deposit, or combination thereof shall under no circumstances be for an amount less than $50,000.  The amount of the surety bond or collateral shall not exceed $500,000, but be the greater of: The required bond, collateral deposit or combination thereof for initial registration shall be calculated in accordance with Form OFR-MT-5-01.

(a)  2% of the registrant’s total U.S. dollar volume of transactions for the preceding 12 month period; or

(b)  An amount based on the number of locations/vendors as determined in accordance with the following schedule: The required bond, collateral deposit or combination thereof for renewal registration shall be calculated in accordance with Form OFR-MT-6-01.

Number of Locations/Vendors          Required Amount of

                                                                Surety/Collateral

                0-10                                                 $50,000

                11-25                                               $100,000

                26-50                                               $150,000

                51-100                                             $200,000

                101-250                                           $250,000

                251 or more                                    $500,000

(c) The required bond, collateral deposit or combination thereof shall not exceed $250,000.00, unless the Office of Financial Regulation determines that an extraordinary circumstance, such as those of Section 560.209(2)(a), F.S., exists which requires an additional amount above $250,000.00. However, the maximum bond, collateral deposit or combination thereof shall be $500,000.00.

(6)(a) For purposes of compliance with the provisions of this rule, a registrant shall calculate the amount of their surety bond, collateral deposit, or combination thereof in accordance with subsection (5) of this rule each December 31st for the preceding 12 months.

(b)  For purposes of compliance with paragraph (5)(b) of this rule the number of active locations/vendors shall be the number of branches in operation and the number of vendors currently under contract with the registrant on December 31st.

(7)  Annually, each registrant shall file on Form OFR-560-07, Security Device Calculation Form, revised 1/1/2007, which is hereby incorporated by reference, the required information regarding the registrant’s amount of surety bond, collateral deposit, or combination thereof as prescribed in subsection (5) of this rule not later than January 31st of each calendar year. If based on the registrant’s calculation, the amount of the device must be increased, the registrant shall provide to the Office an additional surety bond, surety rider for an existing bond, collateral deposit pledge agreement or combination thereof reflecting the amount required no later than sixty (60) days following the deadline to file Form OFR-560-07, Security Device Calculation Form.

(8)(6) The bond, collateral deposit or combination thereof shall remain in place for 5 years after the registrant ceases operations in this state. The security shall be reduced or eliminated prior to that time upon written approval, if the Office of Financial Regulation determines that the registrant's outstanding payment instruments or funds transmitted in this state have been paid or reduced and that such lesser amount adequately protects the interests of the public.

(9)(7) A registrant must at all times have and maintain the bond, collateral deposit or combination thereof in the amount prescribed by the Office of Financial Regulation. If the Office of Financial Regulation at any time reasonably determines that the bond or elements of the collateral deposit are insecure, deficient in amount, or exhausted in whole or in part, the Office of Financial Regulation shall, by written order, require the filing of a new or supplemental bond or the deposit of new or additional collateral deposit items.

(10) All forms incorporated by reference in this rule are available on the Office’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376.

Specific Authority 560.105(3), 560.209(2)(a) FS. Law Implemented 560.207, 560.209 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.402, Amended________.

 

69V-560.602 Quarterly Reports to Be Filed by Check Cashers.

(1) Every money transmitter registered pursuant to the Code registered check casher shall submit a quarterly report to the Office of Financial Regulation on by filing a completed Form OFR-560-04MT-1-01, Money Transmitter Quarterly Report Form, effective 1/1/2007 10/01, which is hereby incorporated by reference and available on the Office’s website at www.flofr.com and by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida  32399-0376. A completed quarterly report form Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a Saturday, Sunday weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(2)(3) The Office of Financial Regulation may shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2)(b) FS. Law Implemented 560.118(2) FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.602, Amended ________.

 

69V-560.603 Quarterly Reports to Be Filed by Foreign Currency Exchangers.

(1) Every registered foreign currency exchanger shall submit a quarterly report to the Office of Financial Regulation on Form OFR-MT-1-01, Money Transmitter Quarterly Report Form, effective 10/01, which is hereby incorporated by reference. Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3) The Office of Financial Regulation shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2)(b) FS. Law Implemented 560.118(2), 560.123 FS. History–New 9-24-97, Amended 12-30-98, 11-4-01, Formerly 3C-560.603, Repealed ________.

 

69V-560.604 Quarterly Reports to Be Filed by Funds Transmitters.

(1) Every registered funds transmitter shall submit a quarterly report to the Office of Financial Regulation on Form OFR-MT-1-01, Money Transmitter Quarterly Report Form, effective 10/01, which is hereby incorporated by reference. Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3) The Office of Financial Regulation shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2)(b) FS. Law Implemented 560.118(2), 560.123, 560.210 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.604, Repealed ________.

 

69V-560.605 Quarterly Reports to Be Filed by Payment Instrument Sellers.

(1) Every registered payment instrument seller shall submit a quarterly report to the Office of Financial Regulation on Form OFR-MT-1-01, Money Transmitter Quarterly Report Form, effective 10/01, which is hereby incorporated by reference. Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3) The Office of Financial Regulation shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2)(b) FS. Law Implemented 560.118(2), 560.123, 560.210 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.605, Repealed________.

 

69V-560.606 Annual Filing of Financial Statements by Part II Registrants.

(1)(a) Each registered funds transmitter shall annually submit audited financial statements to the Office of Financial Regulation for the registrant’s most recent fiscal year.

(b) Each registered payment instrument seller shall annually submit audited financial statements to the Office of Financial Regulation for the registrant’s most recent fiscal year unless it is exempt pursuant to Section 560.118(2)(a), F.S. Any registrant claiming such exemption shall submit such claim in writing on Form OFR-560-08 MT-4-01, Money Transmitter Audited Financial Statement Exemption Claim Form, effective 1/1/2007 10/01, which is hereby incorporated by reference and available on the Office’s website at www.flofr.com and by mail at the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0376. The claim shall be executed by the registrant or an officer of the registrant under penalty of perjury. The exemption shall be valid for the current fiscal year only, and must be resubmitted each year by the registrant.

(c) No change.

(2) through (3) No change.

(4) For purposes of adding new locations or authorized vendors, a Part II registrant may rely upon its annual financial statements that were received by the Office of Financial Regulation in a timely manner as required in subsections (1) and (2) of this rule or the net worth disclosure required by Form OFR-MT-2-01. The Office of Financial Regulation reserves the right to require additional documentation up to and including the submission of financial statements to substantiate the net worth disclosure on Form OFR-MT-2-01.

Specific Authority 560.105(3), 560.118(2)(a), 560.205(3)(f), (4)(d) FS. Law Implemented 560.118(2), 560.205, 560.208 FS. History– New 11-4-01, Formerly 3C-560.606, Amended ________.

 

69V-560.607 Quarterly Reports to Be Filed by Deferred Presentment Providers.

(1) Every registered deferred presentment provider shall submit a quarterly report to the Office of Financial Regulation on Form OFR-MT-1-01, Money Transmitter Quarterly Report Form, effective 10/01, which is hereby incorporated by reference. Such report shall be received by the Office of Financial Regulation no later than forty-five (45) days after the conclusion of each quarter and shall be sent to Division of Securities and Finance at the address listed in subsection 69V-560.102(1), F.A.C. Should the forty-fifth day fall on a weekend or holiday, the reports must be received by the Office of Financial Regulation no later than the next business day.

(2) In lieu of filing Form OFR-MT-1-01, a registrant may submit the required quarterly report information electronically on or before the deadline by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the Internet.

(3) The Office of Financial Regulation shall levy a late payment penalty of $100.00 per day or part thereof that a report is past due. A report is “past due” if it is received by the Office of Financial Regulation one or more days beyond the period defined in subsection (1).

Specific Authority 560.105(3), 560.118(2) FS. Law Implemented 560.118(2) FS. History–New 11-4-01, Formerly 3C-560.607, Repealed________.

 

69V-560.906 Consumer Credit Counseling Services.

(1) The Office of Financial Regulation shall publish a list of consumer credit counseling agencies by October 1 of each calendar year via the Office of Financial Regulation's website (www.flofr.com dbf.state.fl.us). The Office of Financial Regulation will accept requests from consumer credit counseling agencies to be included on the list on an ongoing basis and may periodically republish the list at its discretion. If the Office of Financial Regulation makes a decision to publish the list more often, a notice of such change will be posted on the Office of Financial Regulation's website. The provider will then be responsible for making and distributing such additional copies of the list to all branch locations engaging in deferred presentment transactions.

(2) through (8) No change.

Specific Authority 560.105(3), 560.404(23) FS. Law Implemented 560.404 FS. History–New 2-20-02, Formerly 3C-560.906, Amended ________.


NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory C. Oaks, Financial Administrator, 200 East Gaines Street, 6th Floor, The Fletcher Building, Tallahassee, Florida 32399-0375, (850)410-9805
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: February 13, 2007
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: December 22, 2006