Bill Text: FL H0311 | 2010 | Regular Session | Engrossed

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Bill Title: Debt Settlement Services

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2010-04-30 - Died in Messages [H0311 Detail]

Download: Florida-2010-H0311-Engrossed.html

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CS/CS/CS/HB 311

1	A bill to be entitled
2	An act relating to debt settlement services; providing a
3	directive to the Division of Statutory Revision; creating
4	s. 559.101, F.S.; providing a short title; creating s.
5	559.102, F.S.; providing definitions; creating s. 559.103,
6	F.S.; providing the powers of the Office of Financial
7	Regulation; creating s. 559.104, F.S.; authorizing the
8	Financial Services Commission to adopt rules; creating s.
9	559.105, F.S.; providing exceptions from the applicability
10	of provisions regulating debt settlement services;
11	providing an exception for attorneys representing clients;
12	creating s. 559.106, F.S.; requiring debt settlement
13	organizations to be registered with the office; providing
14	a registration fee; requiring background screening of
15	applicants and control persons; providing grounds for
16	registration issuance or denial; requiring annual renewal;
17	creating s. 559.107, F.S.; requiring registration renewal;
18	creating s. 559.108, F.S.; requiring a debt settlement
19	organization to obtain certain insurance coverage and a
20	surety bond and to provide proof of such bond to the
21	office; creating s. 559.109, F.S.; requiring a debt
22	settlement organization to maintain records; creating s.
23	559.111, F.S.; requiring a debt settlement organization to
24	prepare a financial analysis for the debtor; providing for
25	service contracts; requiring certain provisions to be
26	included in such contracts; requiring the debt settlement
27	organization to provide the debtor with copies of all
28	signed documents; creating s. 559.112, F.S.; prohibiting
29	certain acts by debt settlement organizations; providing
30	penalties; creating s. 559.113, F.S.; providing for debtor
31	complaints to the office; providing procedures and office
32	duties, including administrative penalties; creating s.
33	559.114, F.S.; providing for the issuance of subpoenas by
34	the office; creating s. 559.115, F.S.; authorizing the
35	office to issue cease and desist orders; creating s.
36	559.116, F.S.; declaring that violations of the part are
37	deceptive and unfair trade practices; providing
38	administrative penalties; specifying violations that
39	result in criminal penalties; amending s. 516.07, F.S.;
40	conforming a cross-reference; repealing ss. 559.10,
41	559.11, 559.12, and 559.13, F.S., relating to budget
42	planning; providing an appropriation and authorizing
43	additional positions; providing effective dates.
44
45	Be It Enacted by the Legislature of the State of Florida:
46
47	Section 1. The Division of Statutory Revision is directed
48	to redesignate the title of part II of chapter 559, Florida
49	Statutes, consisting of ss. 559.101-559.116, as "Debt Settlement
50	Services."
51	Section 2. Section 559.101, Florida Statutes, is created
52	to read:
53	559.101 Short title.-This part may be cited as the "Debt
54	Settlement Services Act."
55	Section 3. Section 559.102, Florida Statutes, is created
56	to read:
57	559.102 Definitions.-As used in this part, the term:
58	(1) "Commission" means the Financial Services Commission.
59	(2) "Control person" means an individual, partnership,
60	corporation, trust, or other organization that possesses the
61	power, directly or indirectly, to direct the management or
62	policies of a company, whether through ownership of securities,
63	by contract, or otherwise. The term includes, but is not limited
64	to:
65	(a) A company's executive officers, including the
66	president, chief executive officer, chief financial officer,
67	chief operations officer, chief legal officer, chief compliance
68	officer, director, or other individuals having similar status or
69	functions.
70	(b) For a corporation, each shareholder who, directly or
71	indirectly, owns 10 percent or more, or who has the power to
72	vote 10 percent or more, of a class of voting securities, unless
73	the applicant is a publicly traded company.
74	(c) For a partnership, all general partners and limited or
75	special partners who have contributed 10 percent or more, or who
76	have the right to receive upon dissolution 10 percent or more,
77	of the partnership's capital.
78	(d) For a trust, each trustee.
79	(e) For a limited liability company, all managing members
80	and those members who have contributed 10 percent or more, or
81	who have the right to receive upon dissolution 10 percent or
82	more, of the partnership's capital.
83	(3) "Debt settlement organization " means a person who
84	provides or offers to provide debt settlement services for
85	compensation.
86	(4) "Debt settlement services" means services, other than
87	foreclosure-related rescue services, provided to a debtor with
88	the expectation of obtaining the creditor's agreement to accept
89	less than the principal amount of a debt in full satisfaction of
90	the debt.
91	(5) "Debtor" means an individual who obtains credit, seeks
92	a credit agreement with a creditor, or owes money to a creditor.
93	(6) "Enrolled debt" means the amount of debt at the time
94	the contract for debt settlement services is entered but does
95	not include any increases in the amount of debt or additional
96	fees or penalties applied to the debt after services included in
97	the contract are initiated.
98	(7) "Financial analysis" means the review of an
99	individual's budget, income, expenses, and debt by the debt
100	settlement organization in order to determine the individual's
101	suitability for additional debt settlement services provided by
102	the organization.
103	(8) "Office" means the Office of Financial Regulation of
104	the Financial Services Commission.
105	(9) "Person" has the same meaning as provided in s. 1.01.
106	(10) "Service contract" means the agreement for services
107	between a debt settlement organization and a debtor.
108	Section 4. Section 559.103, Florida Statutes, is created
109	to read:
110	559.103 Powers and duties of the Office of Financial
111	Regulation; fees.-
112	(1) The office is responsible for the administration and
113	enforcement of this part.
114	(2) The office may conduct an investigation of any person
115	if the office has reason to believe, upon complaint or
116	otherwise, that any violation of this part may have been
117	committed or is about to be committed.
118	(3) All fees, charges, and fines collected pursuant to
119	this part shall be deposited in the State Treasury to the credit
120	of the Regulatory Trust Fund under the office.
121	Section 5. Section 559.104, Florida Statutes, is created
122	to read:
123	559.104 Rules.-The commission may adopt rules to
124	administer this part, including rules that:
125	(1) Require electronic submission of any forms, documents,
126	or fees required under this part.
127	(2) Establish time periods during which an applicant for
128	registration is barred from registration or a registered debt
129	settlement organization is barred from renewal due to prior
130	criminal convictions of, or guilty or nolo contendere pleas by,
131	any of the applicant's or registrant's control persons,
132	regardless of adjudication.
133	(a) The rules must provide:
134	1. Permanent bars for felonies involving money laundering,
135	breach of trust, dishonesty, embezzlement, fraud, fraudulent
136	conversion, misappropriation of property, racketeering, or
137	theft;
138	2. A 15-year disqualifying period for felonies involving
139	moral turpitude;
140	3. A 7-year disqualifying period for all other felonies;
141	and
142	4. A 5-year disqualifying period for misdemeanors
143	involving fraud, dishonesty, or any other act of moral
144	turpitude.
145	(b) The rules may provide for an additional waiting period
146	due to dates of imprisonment or community supervision, the
147	commitment of multiple crimes, and other factors reasonably
148	related to the applicant's criminal history.
149	(c) The rules may provide for mitigating factors for
150	crimes identified in subparagraph (a)2. However, the mitigation
151	may not result in a period of disqualification less than 7
152	years. The rule may not mitigate the disqualifying periods in
153	subparagraphs (a)1., (a)3., and (a)4.
154	(d) An applicant is not eligible for registration until
155	the expiration of the disqualifying period set by rule.
156	(e) Section 112.011 is not applicable to eligibility for
157	registration under this part.
158	Section 6. Section 559.105, Florida Statutes, is created
159	to read:
160	559.105 Exceptions.-This part does not apply to:
161	(1) A person licensed to practice law in this state who is
162	providing debt settlement services.
163	(2) A person who engages in debt settlement services to
164	adjust the indebtedness owed to such person.
165	(3) The following entities or their subsidiaries:
166	(a) The Federal National Mortgage Association.
167	(b) The Federal Home Loan Mortgage Corporation.
168	(c) The Florida Housing Finance Corporation created
169	pursuant to s. 420.504.
170	(d) Any financial institution as defined in s.
171	655.005(1)(h).
172	(e) A consumer reporting agency as defined in the Federal
173	Fair Credit Reporting Act, 15 U.S.C. s. 1681a.
174	Section 7. Section 559.106, Florida Statutes, is created
175	to read:
176	559.106 Registration of debt settlement organization.-
177	(1) Effective April 1, 2011, each person who acts as a
178	debt settlement organization in this state must be registered in
179	accordance with this section. This applies to debt settlement
180	organizations operating in this state or from another state,
181	regardless of whether such organization is registered, licensed,
182	or the equivalent in accordance with the laws of another state.
183	(2) In order to apply for registration, an applicant must
184	submit:
185	(a) A completed registration application form as
186	prescribed by commission rule which includes the name and
187	principal business address and e-mail address of the debt
188	settlement organization.
189	(b) A registration fee of $1,000. The registration fee is
190	nonrefundable and may not be prorated for a partial year of
191	registration.
192	(c) Fingerprints for the applicant and each of the
193	applicant's control persons in accordance with rules adopted by
194	the commission.
195	1. The fingerprints may be submitted to the office or a
196	vendor acting on behalf of the office.
197	2. The office may contract with a third-party vendor to
198	provide live-scan fingerprinting in lieu of a paper fingerprint
199	card.
200	3. A state criminal history background check must be
201	conducted through the Department of Law Enforcement, and a
202	federal criminal history background check must be conducted
203	through the Federal Bureau of Investigation.
204	4. All fingerprints submitted to the Department of Law
205	Enforcement must be submitted electronically and entered into
206	the statewide automated fingerprint identification system
207	established in s. 943.05(2)(b) and available for use in
208	accordance with s. 943.05(2)(g) and (h). The office shall pay an
209	annual fee to the department to participate in the system and
210	inform the department of any person whose fingerprints are no
211	longer required to be retained.
212	5. The costs of fingerprint processing, including the cost
213	of retaining the fingerprints, shall be borne by the person
214	subject to the background check.
215	6. The office is responsible for reviewing the results of
216	the state and federal criminal history checks and determining
217	whether the applicant meets registration requirements.
218	(d) Submit documentation demonstrating that the surety
219	bond requirements specified in s. 559.108 have been satisfied.
220	(e) Submit additional information or documentation
221	requested by the office and required by rule concerning the
222	applicant or a control person of the applicant. Additional
223	information may include documentation of pending and prior
224	disciplinary and criminal history events, including arrest
225	reports and certified copies of charging documents, plea
226	agreements, judgments and sentencing documents, documents
227	relating to pretrial intervention, orders terminating probation
228	or supervised release, final administrative agency orders, or
229	other comparable documents that may provide the office with the
230	appropriate information to determine eligibility for
231	registration.
232	(3) An application is considered received for the purposes
233	of s. 120.60 upon the office's receipt of the completed
234	application form, all required documentation, criminal history
235	information, the application fee, and all applicable
236	fingerprinting processing fees.
237	(4) The office shall issue a debt settlement organization
238	registration to each applicant who is not otherwise ineligible
239	and who meets the requirements of this section. However, it is a
240	ground for denial of registration if the applicant or one of the
241	applicant's control persons:
242	(a) Has been found guilty of, regardless of adjudication,
243	or has entered a plea of nolo contendere or guilty to, any
244	felony, any crime involving racketeering, fraud, theft,
245	embezzlement, fraudulent conversion, breach of trust,
246	misappropriation of property, dishonesty, or moral turpitude;
247	(b) Has committed any violation specified in s. 559.113;
248	(c) Is the subject of a pending felony criminal
249	prosecution or a prosecution or an administrative enforcement
250	action, in any jurisdiction, which involves fraud, racketeering,
251	embezzlement, fraudulent conversion, misappropriation of
252	property, theft, dishonesty, breach of trust, or any other act
253	of moral turpitude;
254	(d) Pays the office any fee, fine, or other amount with a
255	check or electronic transmission of funds which fails to clear
256	the applicant's financial institution;
257	(e) Makes a material misstatement on any application,
258	document, or record required to be submitted under this part or
259	the rules of the commission; or
260	(f) Has been the subject of any decision, finding,
261	injunction, suspension, prohibition, revocation, denial,
262	judgment, or other adverse action by any state or federal
263	agency.
264	(5) A registration issued under this section expires
265	annually on March 31, unless canceled, suspended, revoked, or
266	otherwise terminated, and must be renewed as provided under s.
267	559.107.
268	Section 8. Effective April 1, 2011, section 559.107,
269	Florida Statutes, is created to read:
270	559.107 Registration renewal.-
271	(1) In order to renew a debt settlement organization
272	registration, a debt settlement organization must submit:
273	(a) A completed registration renewal form as prescribed by
274	commission rule.
275	(b) Fingerprints, in accordance with s. 559.106, for any
276	new control persons who have not been screened.
277	(c) Any additional information or documentation requested
278	by the office and required by rule concerning the registrant or
279	control person of the registrant. Additional information may
280	include documentation of any pending and prior disciplinary and
281	criminal history events, including arrest reports and certified
282	copies of charging documents, plea agreements, judgments and
283	sentencing documents, documents relating to pretrial
284	intervention, orders terminating probation or supervised
285	release, final administrative agency orders, or other comparable
286	documents that may provide the office with the appropriate
287	information to determine eligibility for renewal of
288	registration.
289	(d) A nonrefundable renewal fee of $750 and nonrefundable
290	fees to cover the cost of further fingerprint processing and
291	retention as set forth in commission rule.
292	(2) The office may not renew a debt settlement
293	organization registration unless the registrant continues to
294	meet the minimum requirements for initial registration pursuant
295	to s. 559.106 and adopted rule.
296	Section 9. Section 559.108, Florida Statutes, is created
297	to read:
298	559.108 Financial requirements; surety bond; disclosure.-A
299	debt settlement organization must:
300	(1) Obtain and maintain at all times insurance coverage
301	for employee dishonesty, depositor's forgery, and computer fraud
302	in an amount not less than the greater of $100,000 or 10 percent
303	of the monthly average of the aggregate of all deposits made by
304	debtors to the organization for distribution to creditors for
305	the 6 months immediately preceding the date of initial
306	application for or renewal of the insurance. The deductible on
307	such coverage may not exceed 10 percent of the face amount of
308	the policy coverage.
309	(2) Obtain and maintain a surety bond from a surety
310	company authorized to do business in this state. The amount and
311	form of the bond shall be specified by rule and must be at least
312	$50,000 but may not exceed $1 million. The rule must provide
313	allowances for business volume. The bond shall be in favor of
314	the state for the use and benefit of any debtor who suffers or
315	sustains any loss or damage by reason of any violation of this
316	part. Pursuant to initial registration and renewal, each
317	applicant shall furnish to the office:
318	(a) The original executed surety bond issued by a surety
319	company authorized to do business in this state.
320	(b) A statement from the surety company that the premium
321	for the bond has been paid in full by the applicant.
322	(c) A statement from the surety company that the bond
323	issued by the surety company meets the requirements of this
324	part. The liability of the surety company under any bond issued
325	pursuant to this section may not, in the aggregate, exceed the
326	amount of the bond regardless of the number or amount of any
327	claims filed or which might be asserted against the surety on
328	such bond. If multiple claims are filed which collectively
329	exceed the amount of the bond, the surety may pay the full
330	amount of the bond to the office and is not further liable under
331	the bond. The office shall hold such funds for distribution to
332	claimants and administratively determine and pay to each
333	claimant a pro rata share of each valid claim made within 6
334	months after the date the first claim is filed against the
335	surety.
336	Section 10. Section 559.109, Florida Statutes, is created
337	to read:
338	559.109 Maintenance of records.-
339	(1) Each registered debt settlement organization shall
340	maintain, at the principal place of business designated on the
341	registration, all books, accounts, records, and documents
342	necessary to determine the registrant's compliance with this
343	part.
344	(2) The office may authorize the maintenance of records at
345	a location other than a principal place of business. The office
346	may require books, accounts, and records to be produced and
347	available at a reasonable and convenient location in this state.
348	(3) The commission may prescribe by rule the minimum
349	information to be shown in the books, accounts, records, and
350	documents of registrants so that such records enable the office
351	to determine the registrant's compliance with this part.
352	(4) All books, accounts, records, documents, and receipts
353	of any payment transaction must be preserved and kept available
354	for inspection by the office for at least 5 years after the date
355	the transaction is completed. The commission may prescribe by
356	rule requirements for the destruction of books, accounts,
357	records, and documents retained by the registrant after the
358	completion of the required 5-year period.
359	Section 11. Section 559.111, Florida Statutes, is created
360	to read:
361	559.111 Financial analysis; service contracts.-
362	(1) Before a debtor signs a service contract, the debt
363	settlement organization shall prepare, retain a copy of, and
364	provide to the debtor a written financial analysis specific to
365	the debtor which includes an evaluation of the debtor's income,
366	expenses, and all debts. An additional fee may not be charged
367	for the financial analysis.
368	(2) Based on the completed financial analysis, the debt
369	settlement organization shall provide to the debtor, and retain
370	a copy of, a written determination of the debtor's suitability
371	for debt settlement services and whether the debtor can
372	reasonably meet the requirements of the service contract,
373	including the debtor's ability to save the amount estimated to
374	be needed to fund the settlement of the debt.
375	(3) The service contract between the debt settlement
376	organization and the debtor must be signed and dated by the
377	debtor and include all of the following:
378	(a) The following statement in at least 12-point uppercase
379	type at the top of the service contract:
380
381	IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR
382	CREDITORS BEFORE SIGNING THIS CONTRACT. YOUR CREDITORS
383	MAY BE WILLING TO DIRECTLY NEGOTIATE A SETTLEMENT,
384	INTEREST RATE REDUCTION, MODIFICATION, PAYMENT PLAN,
385	OR RESTRUCTURING OF YOUR DEBT FREE OF CHARGE.
386
387	YOUR USE OF DEBT SETTLEMENT SERVICES MAY RESULT IN
388	LATE FEES, ADDITIONAL DEBTS, AND AN ADVERSE CREDIT
389	RATING. YOU SHOULD CONTACT YOUR CREDITOR FOR MORE
390	INFORMATION.
391
392	(b) A full and detailed description of the services to be
393	performed by the debt settlement organization for the debtor,
394	including the financial analysis determining the suitability of
395	the debtor for debt settlement services, all guarantees and all
396	promises of full or partial refunds, the estimated date or
397	length of time by which the services are to be performed, and a
398	copy of the Florida Debt Settlement Services Act.
399	(c) All terms and conditions of payment, including the
400	anticipated total of all payments to be made by the debtor and
401	the estimated amount of any payments to be made to the debt
402	settlement organization or to any other person.
403	(d) The debt settlement organization's principal business
404	address and the name and address of its agent in the state
405	authorized to receive service of process.
406	(e) A clear and conspicuous statement in boldface type, in
407	immediate proximity to the space reserved for the debtor's
408	signature, which states: "You, the debtor, may cancel this
409	service contract at any time before midnight of the 5th business
410	day after the date of signing this contract. (See the attached
411	notice of right to cancel for further explanation of this
412	right.)"
413	(f) A notice of right to cancel attached to the contract,
414	in duplicate and easily detachable, which contains the following
415	statement in at least 12-point uppercase type:
416
417	NOTICE OF RIGHT TO CANCEL
418
419	YOU MAY CANCEL ANY CONTRACT FOR DEBT SETTLEMENT
420	SERVICES WITHIN 5 BUSINESS DAYS AFTER THE DATE THE
421	CONTRACT IS SIGNED BY YOU WITHOUT INCURRING ANY
422	PENALTY OR OBLIGATION.
423
424	YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10
425	BUSINESS DAYS AFTER RECEIPT OF YOUR CANCELLATION
426	NOTICE.
427
428	TO CANCEL THIS CONTRACT, YOU MUST MAIL OR DELIVER A
429	SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR
430	ANY OTHER WRITTEN NOTICE CLEARLY INDICATING YOUR
431	DESIRE TO CANCEL YOUR CONTRACT.
432
433	TO: ...(name of debt settlement organization)...
434	AT: ...(address)...
435
436	BY SIGNING AND DATING THIS NOTICE, I HEREBY CANCEL MY
437	SERVICE CONTRACT, EXECUTED ON: ...(date service
438	contract signed)...
439
440	...(Signature of Debtor)...
441	...(Date)...
442	...(Address)...
443	...(Phone Number)...
444
445	(4) The debt settlement organization must provide the
446	debtor, at the time the documents are signed, with a copy of the
447	completed service contract as described in subsection (3) and
448	all other documents the organization requires the debtor to
449	sign.
450	Section 12. Section 559.112, Florida Statutes, is created
451	to read:
452	559.112 Prohibited acts.-
453	(1) A debt settlement organization may not, directly or
454	indirectly, charge or accept from a debtor:
455	(a) Any payment for services before the execution of a
456	written service contract.
457	(b) A fee or contribution greater than $50 for the initial
458	setup or initial consultation.
459	(c) A fee or contribution for debt settlement services
460	that exceeds 40 percent of the realized savings. As used in this
461	paragraph, the term "realized savings" means the difference
462	between the amount of the enrolled debt and the amount paid to
463	the creditor in discharge of the enrolled debt. However, such
464	fee or contribution collected for debt settlement services, in
465	the aggregate, may not exceed 20 percent of the enrolled debt.
466	(d) For a service contract requiring payment of a fee or
467	contribution on a monthly basis, a fee or contribution for debt
468	settlement services that exceeds 20 percent of the enrolled
469	debt. Such fees or contributions may only be collected under
470	this paragraph by apportioning the collection of the fees or
471	contributions pro rata throughout at least one-half of the
472	estimated term of the debt settlement services.
473
474	A fee or contribution authorized under this subsection is not a
475	part of, and may not be included in the calculation of, the
476	total enrolled debt.
477	(2) A debt settlement organization may not:
478	(a) Advise any debtor, directly or indirectly, against
479	contacting or communicating with her or his creditors before or
480	during the service contract period.
481	(b) Make or use any false or misleading representations or
482	omit any material fact in connection with the offer, sale, or
483	provision of services, or engage, directly or indirectly, in any
484	fraudulent, false, misleading, unconscionable, unfair, or
485	deceptive act or practice in connection with the offer or sale
486	of any of the services of a debt settlement organization.
487	(c) Provide services to a debtor without executing a
488	service contract that complies with s. 559.111.
489	(d) Fail to provide copies of the financial analysis, all
490	service contracts, and any other documents the debtor is
491	required to sign as provided under s. 559.111.
492	(e) Fail to perform any of the terms, conditions, and
493	obligations provided in the service contract with the debtor.
494	(f) Fail to disclose on any offer or sale of services,
495	including any Internet website, the debt settlement
496	organization's name, business address, telephone number, and e-
497	mail address, if any.
498	(g) Fail to provide the debtor with a 5-business-day right
499	of cancellation without the debtor incurring any penalty or
500	obligation.
501	(h) Fail to report on a form prescribed by commission rule
502	any change to information contained in an initial application
503	form or any amendment to the application within 30 days after
504	the change is effective.
505	(i) Fail to comply with any of the provisions of this
506	part.
507	Section 13. Section 559.113, Florida Statutes, is created
508	to read:
509	559.113 Debtor complaints; administrative duties.-
510	(1) The office shall receive and maintain records of
511	correspondence and complaints from debtors concerning any person
512	who provides debt settlement services, including any debt
513	settlement organization.
514	(2) The office shall inform and furnish relevant
515	information to the appropriate regulatory body if a debt
516	settlement organization exempt from registration under this part
517	has been named in consumer complaints alleging violations of
518	this part.
519	(3) The office shall investigate complaints and record the
520	resolution of such complaints.
521	(4) A debt settlement organization that provides or
522	attempts to provide debt settlement services without first
523	registering in accordance with this part is subject to a penalty
524	of up to $25,000 in addition to the other remedies provided in
525	this part and under part II of chapter 501. The office shall
526	advise the appropriate state attorney, or the Attorney General,
527	of any determination by the office of a violation of this part
528	by any debt settlement organization that is not registered as
529	required by this part. The office shall furnish the state
530	attorney or Attorney General with the office's information
531	concerning the alleged violations of such requirements. The
532	enforcing authority is entitled to reasonable attorney's fees
533	and costs in any action brought to enforce this part against an
534	unregistered debt settlement organization.
535	(5) A registered debt settlement organization must provide
536	a written response to the office within 20 days after receipt of
537	a written request from the office for information concerning a
538	consumer complaint. The response must address the issues and
539	allegations raised in the complaint. The office may impose an
540	administrative fine of up to $2,500 per request per day upon any
541	registrant that fails to comply with this subsection.
542	Section 14. Section 559.114, Florida Statutes, is created
543	to read:
544	559.114 Subpoenas.-
545	(1) The office may:
546	(a) Issue and serve subpoenas and subpoenas duces tecum to
547	compel the attendance of witnesses and the production of all
548	books, accounts, records, and other documents and materials
549	relevant to an investigation conducted by the office. The
550	office, or its authorized representative, may administer oaths
551	and affirmations to any person.
552	(b) Seek subpoenas or subpoenas duces tecum from any court
553	to command the appearance of witnesses and the production of
554	books, accounts, records, and other documents or materials at a
555	time and place named in the subpoenas, and an authorized
556	representative of the office may serve such subpoenas.
557	(2) If there is substantial noncompliance with a subpoena
558	or subpoena duces tecum issued by the office, the office may
559	petition the court in the county where the person subpoenaed
560	resides or has her or his principal place of business for an
561	order requiring the person to appear, testify, or produce such
562	books, accounts, records, and other documents as are specified
563	in the subpoena or subpoena duces tecum.
564	(3) The office is entitled to the summary procedure
565	provided in s. 51.011, and the court shall advance such cause on
566	its calendar. Attorney's fees and any other costs incurred by
567	the office to obtain an order granting, in whole or in part, a
568	petition for enforcement of a subpoena or subpoena duces tecum
569	shall be taxed against the subpoenaed person, and failure to
570	comply with such order is a contempt of court.
571	(4) To aid in the enforcement of this part, the office may
572	require or permit a person to file a statement in writing, under
573	oath or otherwise as the office determines, as to all the facts
574	and circumstances concerning the matter to be investigated.
575	Section 15. Section 559.115, Florida Statutes, is created
576	to read:
577	559.115 Cease and desist orders.-The office may issue and
578	serve upon any person an order to cease and desist and to take
579	corrective action if it has reason to believe the person is
580	violating, has violated, or is about to violate any provision of
581	this part, any rule or order issued under this part, or any
582	written agreement between the person and the office. All
583	procedural matters relating to issuance and enforcement of such
584	order are governed by the Administrative Procedure Act.
585	Section 16. Section 559.116, Florida Statutes, is created
586	to read:
587	559.116 Violations; penalties.-
588	(1) A person who violates any provision of this part
589	commits an unfair or deceptive trade practice as defined in part
590	II of chapter 501 and is also subject to the penalties,
591	remedies, and enforcement actions provided therein. Further, any
592	debtor injured by a violation of this part may bring an action
593	for recovery of damages. Judgment shall be entered for actual
594	damages, but in no case less than the amount paid by the debtor
595	to the debt settlement organization plus reasonable attorney's
596	fees and costs.
597	(2) The office may impose an administrative fine on, or
598	revoke or suspend the registration of a registrant who has
599	committed a violation of this part. Final action to fine,
600	suspend, or revoke the registration of a registrant is subject
601	to review in accordance with chapter 120.
602	(a) The office may impose suspension rather than
603	revocation of a registration if circumstances warrant that one
604	or the other should be imposed and the registrant demonstrates
605	that the registrant has taken affirmative steps that can be
606	expected to effectively eliminate the violations and that the
607	registrant's registration has never been previously suspended.
608	(b) In addition to, or in lieu of suspension or revocation
609	of a registration, the office may impose an administrative fine
610	of up to $25,000 per violation. The office shall adopt rules
611	establishing guidelines for imposing administrative penalties.
612	(3) A person who provides debt settlement services in this
613	state without first registering with the office, or who
614	registers or attempts to register by means of fraud,
615	misrepresentation, or concealment, commits a felony of the third
616	degree, punishable as provided in s. 775.082, s. 775.083, or s.
617	775.084.
618	Section 17. Paragraph (g) of subsection (1) of section
619	516.07, Florida Statutes, is amended to read:
620	516.07 Grounds for denial of license or for disciplinary
621	action.-
622	(1) The following acts are violations of this chapter and
623	constitute grounds for denial of an application for a license to
624	make consumer finance loans and grounds for any of the
625	disciplinary actions specified in subsection (2):
626	(g) Any violation of part III of chapter 817 or part II of
627	chapter 559 or of any rule adopted under part II of chapter 559.
628	Section 18. Sections 559.10, 559.11, 559.12, and 559.13,
629	Florida Statutes, are repealed.
630	Section 19. Effective July 1, 2010, the sums of $261,938
631	in recurring funds and $213,767 in nonrecurring funds are
632	appropriated from the Regulatory Trust Fund of the Department of
633	Financial Services to the Office of Financial Regulation, and
634	four full-time equivalent positions with the associated salary
635	rate of 187,707 are authorized, for the purpose of administering
636	this act during the 2010-2011 fiscal year.
637	Section 20. Except as otherwise expressly provided in this
638	act and except for this section, which shall take effect upon
639	this act becoming a law, this act shall take effect January 1,
640	2011.

CODING: Words stricken are deletions; words underlined are additions.