The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2022-135, Laws of Florida, which was signed into law on May 25, 2022 and newly defines the term “control person.” In addition, the ....

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

RULE NOS.:RULE TITLES:

69V-560.1000Disciplinary Guidelines

69V-560.1012Adoption of Forms

69V-560.102Application or Appointment Procedures and Requirements

69V-560.1021Effect of Law Enforcement Records on Applications for Money Services Business Licensure

69V-560.704Records to Be Maintained by Check Cashers

PURPOSE AND EFFECT: The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2022-135, Laws of Florida, which was signed into law on May 25, 2022 and newly defines the term “control person.” In addition, the amended rules will change certain penalty provisions found in incorporated material, revise old forms, and correct grammatical errors.

SUMMARY: The amended rules will conform to and implement Chapter No. 2022-135, Laws of Florida, by incorporating the newly defined term in rule text and incorporated materials. In addition, the amended rules will change certain penalty provisions found in Form OFR-560-09, Disciplinary Guidelines for Money Services Businesses, revise old forms, and correct grammatical errors.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Agency expressly relies on an analysis of potential impact conducted by persons with subject matter knowledge of this rule.

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.

RULEMAKING AUTHORITY: 215.405, 560.105, 560.1141, 560.118, 560.126, 560.141, 560.2085, 560.209, 560.310, 560.403

LAW IMPLEMENTED: 112.011, 560.112, 560.109, 560.1092, 560.1105, 560.111, 560.113, 560.114, 560.1141, 560.118, 560.123, 560.1235, 560.125, 560.126, 560.128, 560.1401, 560.141, 560.143, 560.1235, 560.204, 560.205, 560.208, 560.2085, 560.209, 560.210, 560.211, 560.213, 560.303, 560.309, 560.310, 560.403, 560.404, 560.405, 560.406, 943.053

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Sheila Harley, Office of General Counsel, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69V-560.1000 Disciplinary Guidelines.

(1) Pursuant to Section 560.1141, F.S., disciplinary guidelines applicable to each ground for disciplinary action that may be imposed by the Office against a person for a violation of cChapter 560 F.S., are hereby adopted. The disciplinary guidelines are contained in “Office of Financial Regulation, Division of Consumer Finance, Form OFR-560-09, Disciplinary Guidelines for Money Services Businesses, which is hereby incorporated by reference, effective XX-XXXX11/2019. A copy of the disciplinary guidelines is available on the Office’s website at www.flofr.gov and http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-11317. For the purpose of this rule and the disciplinary guidelines, the term “citation” means: a notice of non-compliance; written agreement; or final order docketed by the agency that specifies a violation of cChapter 560, F.S., or any rule promulgated under that chapter.

(2) No change.

(3) In accordance with Section 560.1141, F.S., the Office shall consider the following circumstances in determining an appropriate penalty within the range of penalties prescribed in the disciplinary guidelines for each violation. The Office shall also consider the circumstances when determining whether a deviation from the range of penalties in the disciplinary guidelines is warranted:

(a) The following circumstances are considered mitigating factors which will be used to reduce the penalty:

1. No change.

2. No prior citation by the Office against the money services business or control person of with a controlling interest in the money services business within the past 10 years;

3. through 6. No change.

(b) The following circumstances are considered aggravating factors which will be used to increase the penalty:

1. through 2. No change.

3. Prior citations by the Office against the money services business or control person of with a controlling interest in the money services business within the past 5 years which contain the same violations;

4. No change.

5. The money services business or control person of with a controlling interest in the money services business attempted to conceal the violation or mislead the Office; or

6. No change.

(4) The list of violations cited in the disciplinary guidelines is intended to be comprehensive, but the omission of a violation from the list does not preclude the Office from taking any action authorized by cChapter 560, F.S.

(5) through (6) No change.

Rulemaking Authority 560.105, 560.1141 FS. Law Implemented 560.109, 560.1092, 560.1105, 560.111, 560.113, 561.113, 560.114, 560.1141, 560.118, 560.123, 560.1235, 560.125, 560.126, 560.128, 560.208, 560.2085, 560.209, 560.210, 560.211, 560.213, 560.303, 560.309, 560.310, 560.403, 560.404, 560.405, 560.406 FS. History–New 6-7-09, Amended 11-28-19,_____________.

 

69V-560.1012 Adoption of Forms.

(1) The following forms are incorporated by reference and readopted by this rule for the purposes of Rules 69V-560.102-.913, F.A.C.:

(a) Application for Licensure as a Money Services Business, Form OFR-560-01, effective XX-XXX January 2, 2014, amended  January 2, 2014, and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-01231.

(b) No change.

(c) Declaration of Intent to Engage in Deferred Presentment Transactions, Form OFR-560-03, effective XX-XXXX January 13, 2009, and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX.

(d) Money Services Business Quarterly Report Form, Form OFR-560-04, effective XX-XXXX January 13, 2009, and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX.

(e) through (f) No change.

(g) Security Device Calculation Form, Form OFR-560-07, effective XX-XXXX October 18, 2009, and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX.

(h) through (k) No change.

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

Rulemaking Authority 215.405, 560.105, 560.118, 560.126, 560.141, 560.2085, 560.209, 560.403 FS. Law Implemented 560.118, 560.126, 560.141, 560.205, 560.2085, 560.209, 560.403, 943.053 FS. History–New 1-13-09, Amended 10-18-09, 3-16-11, 5-29-12, 1-2-14, 11-28-19,___________.

 

69V-560.102 Application or Appointment Procedures and Requirements.

(1) Applications for money service business licenses must be made in accordance with the provisions of Sections 560.1401, 560.141, and 560.143, F.S. Further, applications for a money services business license involving payment instrument sales or money transmission must also comply with Section 560.205, F.S. The application form for applying hereunder is Application for Licensure as a Money Services Business, OFR-560-01, which is incorporated by reference in Rule 69V-560.1012, F.A.C.

(2) through (4) No change.

(5) Amendments to Pending Applications. If the information contained in any application form for licensure as a money services business, or in any amendment thereto, becomes inaccurate for any reason, the applicant shall promptly file an amendment correcting such information on Form OFR-560-01, which is incorporated by reference in Rule 69V-560.1012, F.A.C. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within thirty (30) days from receipt of the application by the Office. Otherwise, the application may be amended only with prior written permission from the Office. The Office will grant permission to amend the application, unless the amendment constitutes a material change to the application. Requests to make changes which are material to the application will be deemed by the Office to be grounds for denial, and a new application, accompanied by the appropriate filing fee, will be required. Material changes include:

(a) No change

(b) The substitution or addition of a control person 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;

(c) through (e) No change.

Rulemaking Authority 560.105, 560.118, 560.209, 560.403 FS. Law Implemented 560.1401, 560.141, 560.143, 560.1235, 560.204, 560.205, 560.209, 560.303, 560.403, 943.053 FS. History–New 9-24-97, Amended 11-4-01, 12-11-03, Formerly 3C-560.102, Amended 7-15-07, 6-17-08, 12-25-08, 1-13-09, 1-2-14, 11-28-19,______________.

 

69V-560.1021 Effect of Law Enforcement Records on Applications for Money Services Business Licensure.

(1) Definitions. For purposes of this rule:

(a) “Relevant persons” means each control person officer, director, responsible person, compliance officer, or controlling shareholder of the money services business applicant, and any other person who has a controlling interest in the money services business applicant as provided in Section 560.127, F.S. If the applicant is a natural person, he or she is the relevant person under this rule.

(b) No change.

(2) through (19) No change.

Rulemaking Authority 560.105 FS. Law Implemented 112.011, 560.114, 560.1401, 560.141 FS. History–New 4-16-09, Amended___________.

 

69V-560.704 Records to Be Maintained by Check Cashers.

(1) For purposes of this rule the term:

(a) No change.

(b) The phrase “its own commercial account” as referenced in Section 560.309(3), F.S., means a depository account in a federally insured financial institution listing the licensee as the exclusive owner of the account. The authorized signatories must be a control person as defined in Section 560.103(10), F.S. have a controlling interest as described in Section 560.127, F.S. A licensee may not grant, through power of attorney, written agreement, or any other means, another person access to its own commercial account to withdraw, withhold, or deposit money.

(2) through (5) No change.

Rulemaking Authority 560.105, 560.310 FS. Law Implemented 560.1105, 560.310 FS. History–New 9-24-97, Amended 11-4-01, Formerly 3C-560.704, Amended 1-13-09, 10-12-15, 1-6-20,_______________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory C. Oaks

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 23, 2022

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 9, 2022