Bill Text: FL S1758 | 2021 | Regular Session | Introduced


Bill Title: Money Services Businesses

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2021-04-30 - Died in Rules [S1758 Detail]

Download: Florida-2021-S1758-Introduced.html
       Florida Senate - 2021                                    SB 1758
       
       
        
       By Senator Brandes
       
       
       
       
       
       24-01390-21                                           20211758__
    1                        A bill to be entitled                      
    2         An act relating to money services businesses; amending
    3         s. 559.952, F.S.; revising exceptions for a licensee
    4         during the Financial Technology Sandbox period;
    5         amending s. 560.103, F.S.; revising and providing
    6         definitions; amending s. 560.204, F.S.; prohibiting
    7         certain activities by a person without obtaining a
    8         license; revising the definition of the term
    9         “compensation”; amending s. 560.210, F.S.; providing
   10         requirements for a money transmitter that receives
   11         virtual currency; excluding virtual currency in the
   12         calculation of permissible investments; providing an
   13         effective date.
   14          
   15  Be It Enacted by the Legislature of the State of Florida:
   16  
   17         Section 1. Paragraph (a) of subsection (4) of section
   18  559.952, Florida Statutes, is amended to read:
   19         559.952 Financial Technology Sandbox.—
   20         (4) EXCEPTIONS TO GENERAL LAW AND WAIVERS OF RULE
   21  REQUIREMENTS.—
   22         (a) Notwithstanding any other law, upon approval of a
   23  Financial Technology Sandbox application, the following
   24  provisions and corresponding rule requirements are not
   25  applicable to the licensee during the sandbox period:
   26         1. Section 516.03(1), except for the application fee, the
   27  investigation fee, the requirement to provide the social
   28  security numbers of control persons, evidence of liquid assets
   29  of at least $25,000, and the office’s authority to investigate
   30  the applicant’s background. The office may prorate the license
   31  renewal fee for an extension granted under subsection (7).
   32         2. Section 516.05(1) and (2), except that the office shall
   33  investigate the applicant’s background.
   34         3. Section 560.109, only to the extent that the section
   35  requires the office to examine a licensee at least once every 5
   36  years.
   37         4. Section 560.118(2).
   38         5. Section 560.125(1), only to the extent that the
   39  subsection would prohibit a licensee from engaging in the
   40  business of a money transmitter or payment instrument seller
   41  during the sandbox period.
   42         6. Section 560.125(2), only to the extent that the
   43  subsection would prohibit a licensee from appointing an
   44  authorized vendor during the sandbox period. Any authorized
   45  vendor of such a licensee during the sandbox period remains
   46  liable to the holder or remitter.
   47         7. Section 560.128.
   48         8. Section 560.141, except for s. 560.141(1)(a)1., 3., 7.
   49  10. and (b), (c), and (d).
   50         9. Section 560.142(1) and (2), except that the office may
   51  prorate, but may not entirely eliminate, the license renewal
   52  fees in s. 560.143 for an extension granted under subsection
   53  (7).
   54         10. Section 560.143(2), only to the extent necessary for
   55  proration of the renewal fee under subparagraph 9.
   56         11. Section 560.204(1), only to the extent that the
   57  subsection would prohibit a licensee from engaging in, or
   58  advertising that it engages in, the selling or issuing of
   59  payment instruments or in the activity of a payment instrument
   60  seller or money transmitter during the sandbox period.
   61         12. Section 560.205(2).
   62         13. Section 560.208(2).
   63         14. Section 560.209, only to the extent that the office may
   64  modify, but may not entirely eliminate, the net worth, corporate
   65  surety bond, and collateral deposit amounts required under that
   66  section. The modified amounts must be in such lower amounts that
   67  the office determines to be commensurate with the factors under
   68  paragraph (5)(c) and the maximum number of consumers authorized
   69  to receive the financial product or service under this section.
   70         Section 2. Subsections (14), (21), (23), (29), and (35) of
   71  section 560.103, Florida Statutes, are amended, and subsection
   72  (36) is added to that section, to read:
   73         560.103 Definitions.—As used in this chapter, the term:
   74         (14) “Electronic instrument” means a card, tangible object,
   75  or other form of electronic payment used for the transmission,
   76  or payment, of money or the exchange of currency or monetary
   77  value, including a stored value card or device that contains a
   78  microprocessor chip, magnetic stripe, or other means for storing
   79  information; that is prefunded; and for which the value is
   80  decremented upon each use.
   81         (21) “Monetary value” means a medium of exchange, other
   82  than virtual currency, regardless of whether it is or not
   83  redeemable in currency.
   84         (23) “Money transmitter” means a corporation, limited
   85  liability company, limited liability partnership, or foreign
   86  entity qualified to do business in this state which receives
   87  currency, monetary value, a or payment instrument, or virtual
   88  currency instruments for the purpose of acting as an
   89  intermediary to transmit currency, monetary value, a payment
   90  instrument, or virtual currency from one person to another
   91  location or person transmitting the same by any means, including
   92  transmission by wire, facsimile, electronic transfer, courier,
   93  the Internet, or through bill payment services or other
   94  businesses that facilitate such transfer within this country, or
   95  to or from this country.
   96         (29) “Payment instrument” means a check, draft, warrant,
   97  money order, travelers check, electronic instrument, or other
   98  instrument utilized for the transmission, exchange, or payment
   99  of currency money, or monetary value, regardless of whether it
  100  is or not negotiable. The term does not include an instrument
  101  that is redeemable by the issuer in merchandise or service, a
  102  credit card voucher, or a letter of credit.
  103         (35) “Stored value” means currency funds or monetary value
  104  represented in digital electronic format, regardless of whether
  105  it is or not specially encrypted, and stored or capable of
  106  storage on electronic media in such a way as to be retrievable
  107  and transferred electronically.
  108         (36)“Virtual currency” means a medium of exchange in
  109  electronic or digital format that is not currency as defined in
  110  subsection (11). The term does not include a medium of exchange
  111  in electronic or digital format that is used:
  112         (a)Solely within online gaming platforms with no market or
  113  application outside such gaming platforms; or
  114         (b) Exclusively as part of a consumer affinity or rewards
  115  program and can be applied solely as payment for purchases with
  116  the issuer or other designated merchants, but cannot be
  117  converted into or redeemed for currency, monetary value, or
  118  virtual currency.
  119         Section 3. Subsection (1) of section 560.204, Florida
  120  Statutes, is amended to read:
  121         560.204 License required.—
  122         (1) Unless exempted, a person may not engage in, or in any
  123  manner advertise that they engage in, the selling or issuing of
  124  payment instruments or in the activity of a payment instrument
  125  seller or money transmitter, for compensation, without first
  126  obtaining a license under this part. For purposes of this
  127  subsection section, the term “compensation” includes profit or
  128  loss on the exchange of currency, monetary value, or virtual
  129  currency.
  130         Section 4. Present subsections (2) and (3) of section
  131  560.210, Florida Statutes, are redesignated as subsections (3)
  132  and (4), respectively, and a new subsection (2) is added to that
  133  section, to read:
  134         560.210 Permissible investments.—
  135         (2) Each money transmitter that receives virtual currency,
  136  either directly or through an authorized vendor, for the purpose
  137  of transmitting such virtual currency from one person to another
  138  location or person must at all times hold virtual currency of
  139  the same type and amount owed or obligated to the other location
  140  or person. Virtual currency received and held under this
  141  subsection is not included in the amount of outstanding money
  142  transmissions for purposes of calculating the permissible
  143  investments required by subsection (1).
  144         Section 5. This act shall take effect January 1, 2022.

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