The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-28, Laws of Florida, which was signed into law on May 2, 2023. The legislation will require applicants and licensees, beginning ....

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

RULE NOS.:RULE TITLES:

69V-160.030Application Procedure for Consumer Finance License

69V-160.031Consumer Finance License Renewal and Reactivation

69V-160.032Amendments, Change of Name, Change of Entity, and Change in Control or Ownership

69V-160.039Adoption of Forms

69V-160.111Disciplinary Guidelines

PURPOSE AND EFFECT: The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-28, Laws of Florida, which was signed into law on May 2, 2023. The legislation will require applicants and licensees, beginning July 1, 2023, and upon application and license for renewal, to attest, under penalty of perjury whether the applicant or licensee is acting in compliance with newly enacted subsections 516.037(1) and (2), Florida Statutes. In addition the amended rules will clarify existing language relating to changes in personnel listed in applications and amended applications, and correct grammatical errors.

SUMMARY: The amended rules will conform to and implement Chapter No. 2023-28, Laws of Florida, by incorporating a new form, which will serve as the attestation of compliance with the newly enacted subsections; will require applicants and licensees to submit the attestation of compliance form to the Office; and will provide sanctions for persons who violate the newly created subsections. In addition, the amendments will clarify existing language relating to changes in personnel listed in applications and amended applications, 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: 516.03, 516.037, 516.03(1), 516.05, 516.05(4), 516.05(5), 516.05(10), 516.22, 516.22(1), 516.23(3)

LAW IMPLEMENTED: 516.01., 516.02, 516.02(1), 516.03, 516.03(1), 516.031, 516.035, 516.037, 516.05, 516.05(1), 516.05(2), 516.05(4), 516.05(5), 516.07, 516.15, 516.16, 516.17, 516.21, 516.31, and 516.36.

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

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Sheila Harley, Office of General Counsel, [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

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-160.030 Application Procedure for Consumer Finance License.

(1) Each person desiring to apply for licensure as a consumer finance company shall submit the following to the Office of Financial Regulation:

(a) A completed Application for Consumer Finance Company License, Form OFR-516-01, which is incorporated by reference in Rule 69V-160.039, F.A.C.;

(b) A completed Consumer Finance Company Attestation Form, Form OFR-516-05, which is incorporated by reference in Rule 69V-160.039, F.A.C.;

(c)(b) The statutory, non-refundable investigation fee required by Section 516.03, F.S.;

(d)(c) The statutory, non-refundable biennial license fee required by Section 516.03, F.S.; and,

(e)(d) Evidence that the applicant has liquid assets of at least $25,000.00 for the operation of the consumer finance company. For the purposes of this rule “Evidence” means documentation from a financial institution, as defined in Section 655.005(1)(i), F.S., that the liquid assets are on deposit with the institution. In lieu of providing evidence of liquid assets of at least $25,000.00, the applicant may provide any one of the documents listed in Section 516.05(10), F.S.

(2) through (3) No change

(4) Amendments to Pending Applications. If the information contained in any application form for licensure as a consumer finance company, or in any amendment thereto, becomes inaccurate for any reason, the applicant shall file an amendment correcting such information within thirty (30) days after the change on Form OFR-516-01, Application for Consumer Finance Company License. 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 after receipt of the application by the Office of Financial Regulation. Otherwise, the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes that are material to the application shall be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fees, shall be required. Material changes include:

(a) through (b) No change

(5) through (7) No change

Rulemaking Authority 516.037, 516.22(1), 516.23(3), 516.03(1), 516.05(10) FS. Law Implemented 516.03(1), 516.037, 516.05, 516.07 FS. History–New 12-18-88, Amended 5-9-90, 10-1-95, 1-5-00, Formerly 3D-160.030, Amended 12-20-07, 1-18-21, 2-16-23,________.

69V-160.031 Consumer Finance License Renewal and Reactivation.

(1) No change

(2) If the Office of Financial Regulation has not received the renewal fee prior to January 1 of the renewal year, the license shall revert from active to inactive status. The inactive license may be reactivated within six (6) months after becoming inactive upon payment of the biennial license fee, and payment of the reactivation fee which is a fee equal to the biennial license fee, and submission of the Consumer Finance Company Attestation Form, Form OFR-516-05.

(3) through (4) No change

(5) All renewal fees and forms required to be filed under this rule shall be filed electronically at www.flofr.gov.

(6) Any person may request an exemption from the electronic filing requirements of this rule by submitting Form OFR-516-02, Request for Exemption from Electronic Filing Requirements, to: Office of Financial Regulation, Division of Consumer Finance, Bureau of Registration, 200 E. Gaines Street, Tallahassee, Florida 32399-0376. The Office of Financial Regulation will provide any person granted an exemption from the electronic filing requirement with instructions on how to file forms and fees in paper format. Form OFR-516-02 is incorporated by reference in Rule 69V-160.036, F.A.C. Any person may petition for waiver of the requirement of electronic submission of fees by filing a petition pursuant to Rule 28-106.301, F.A.C. Such petition shall demonstrate a technological or financial hardship that entitles the person to file the application, fees, data or form in a paper format.

(7) No change

(8) Form OFR-516-05, is incorporated by reference in Rule 69V-160.039, F.A.C.

Rulemaking Authority 516.03(1), 516.037, 516.22(1), 516.23(3) FS. Law Implemented 516.03(1), 516.037, 516.05(1), (2) FS. History–New 12-13-88, Amended 1-5-00, 12-25-00, Formerly 3D-160.031, Amended 12-20-07, ________.

69V-160.032 Amendments, Change of Name, Change of Entity and Change in Control or Ownership.

(1) Each person licensed under Cchapter 516, F.S., that proposes to change its name, form of business organization, or any other information contained in any initial application form or any amendment thereto, must file an amendment pursuant to Ssection 516.05, F.S., not later than thirty-days (30) after the effective date of the change on Application for Consumer Finance Company License, Form OFR-516-01. Name changes pursuant to this subsection shall not involve any change in controlling interest of the licensed entity.

(2) Each licensee under Cchapter 516, F.S., that proposes to change any personnel described in Ssection 516.03, F.S., listed in any initial application or any amendment thereto must file an amendment not later than thirty-days (30) prior to the effective date of the change or within two (2) business days after the date the licensee first received notice of the change on Application for Consumer Finance Company License, Form OFR-516-01. In the event the change in personnel in Ssection 516.03, F.S., listed in any initial application or any amendment thereto results in the addition of anyone referenced in this subsection, such persons must comply with Ssection 516.03, F.S., unless such person has previously complied with Ssection 516.03, F.S., and is currently affiliated with an entity currently licensed under this chapter.

(3) Applications for licensure under Cchapter 516, F.S., required as a result of an acquisition of a controlling interest in a licensee pursuant to Ssection 516.05(5), F.S., must be filed in a timely manner as to allow the Office to complete its review of the application prior to the effective date of the acquisition, but not later than thirty (30) days prior to the date of such acquisition. Such applications must be filed in accordance with Ssection 516.03, F.S.

(4) The office shall waive the requirement for a licensee to file a new application pursuant to Ssection 516.05(5), F.S., when:

(a) A person or group of persons proposing to purchase or acquire a controlling interest in a Cchapter 516, F.S., licensee has previously filed with the Office the information required in Ssection 516.03, F.S., with the licensee to the office, provided that such person is currently affiliated with the licensee; or

(b) The acquirer is currently licensed with the office under Cchapter 516, F.S.

(5) No change

(6) Form OFR-516-01 is incorporated by reference in Rule 69V-160.039 subsection 69V-160.030(1), F.A.C.

Rulemaking Authority 516.05(4), 516.05(5), 516.23(3) FS. Law Implemented 516.01,. 516.02(1), 516.05(4), 516.05(5) FS. History–New 12-20-07, Amended _________.

69V-160.039 Adoption of Forms.

(1) The following forms are incorporated by reference and adopted by this rule for the purposes of Rules 69V-160.001-.111, F.A.C.:

(a) through (c) No change

(d) Consumer Finance Company Attestation Form, Form OFR-516-05, effective XX-XXXX, and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-XXXX.

(2) No change

Rulemaking Authority 516.03, 516.037, 516.05, 516.22 FS. Law Implemented 516.03, 516.037, 516.05 FS. History–New 2-16-23, Amended ________.

69V-160.111 Disciplinary Guidelines.

(1) Pursuant to Section 516.07, F.S., Disciplinary Guidelines for Consumer Finance Companies, Form OFR-516-04, which is hereby incorporated by reference, effective XX-XXXX 02-2023, available on the Office’s website at www.flofr.gov and available at http://www.flrules.org/ Gateway/reference.asp?No=Ref-XXXX http://www.flrules.org/Gateway/reference.asp?No=Ref-15145, are applicable to each ground for disciplinary action that may be imposed by the Office against a person for each act that is a violation of Chapter 516, F.S. For the purpose of this rule and the disciplinary guidelines, the term “citation” means: a notice of noncompliance, reprimand, written agreement, or final order docketed by the agency that specifies a violation of Chapter 516, F.S., or any rule promulgated under that chapter.

(2) through (6) No change

Rulemaking Authority 516.23(3) FS. Law Implemented 516.02, 516.031, 516.035, 516.037, 516.05, 516.07, 516.15, 516.16, 516.17, 516.21, 516.31, 516.36 FS. History–New 3-20-91, Formerly 3D-160.111, Amended 2-16-23, ____________.

 

 

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: May 23, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: May 10, 2023