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House Bill 1097

Florida House of Representatives - 1997 HB 1097 By the Committee on Financial Services and Representatives Safley, Lippman, Sanderson, Bainter, Ball, Edwards, Rayson, Effman, Flanagan, Lawson, Dennis and Maygarden 1 A bill to be entitled 2 An act relating to securities transactions; 3 amending s. 517.021, F.S.; revising 4 definitions; amending s. 517.051, F.S.; 5 deleting an exemption from securities 6 registration requirements for investment 7 companies; amending s. 517.07, F.S.; 8 prohibiting the sale of certain securities; 9 requiring the Department of Banking and Finance 10 to issue a permit upon granting a registration; 11 amending s. 517.081, F.S.; providing additional 12 authority to the Department of Banking and 13 Finance relating to registration requirements; 14 providing for filing certain alternative 15 information; providing requirements; amending 16 ss. 517.082 and 517.101, F.S.; deleting 17 obsolete cross references; amending s. 517.12, 18 F.S.; exempting commodity trading advisers from 19 certain registration requirements under certain 20 circumstances; providing for a reduced 21 assessment fee under certain circumstances; 22 amending s. 517.1203, F.S.; providing for 23 termination of allocation of certain assessment 24 fee revenues to the Securities Guaranty Fund 25 under certain circumstances; amending s. 26 517.131, F.S.; specifying an allocation of 27 certain assessment fee revenues to the 28 Securities Guaranty Fund under certain 29 circumstances; providing effective dates. 30 31 Be It Enacted by the Legislature of the State of Florida: 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 Section 1. Effective upon this act becoming a law, 2 subsection (2) of section 517.021, Florida Statutes, is 3 amended, subsections (8)-(18) of said section are redesignated 4 as subsections (9)-(19), respectively, a new subsection (8) is 5 added to said section, and paragraph (b) of redesignated 6 subsection (11) is amended, to read: 7 517.021 Definitions.--When used in this chapter, 8 unless the context otherwise indicates, the following terms 9 have the following respective meanings: 10 (2) "Associated person" means any of the following: 11 (a) Any partner, officer, director, or branch manager 12 of a dealer or investment adviser or any person occupying a 13 similar status or performing similar functions; 14 (b) Any natural person directly or indirectly 15 controlling or controlled by such dealer or investment 16 adviser, other than an employee whose function is only 17 clerical or ministerial; or 18 (c) Any natural person, other than a dealer, employed, 19 appointed, or authorized by a dealer, investment adviser, or 20 issuer to sell securities in any manner or act as an 21 investment adviser as defined in this section. 22 23 The partners of a partnership and the executive officers of a 24 corporation or other association registered as a dealer, and 25 any person whose transactions in this state are limited to 26 those transactions described in s. 15(h)(2) of the Securities 27 Exchange Act of 1934, are not "associated persons" within the 28 meaning of this definition. 29 (8) "Federal covered security" means any security that 30 is a covered security under s. 18(b) of the Securities Act of 31 1933 or rules and regulations adopted thereunder. 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 (11)(10) 2 (b) The term "investment adviser" does not include the 3 following: 4 1. Any licensed practicing attorney or certified 5 public accountant who renders or performs any of such services 6 in connection with the regular practice of his profession; 7 2. Any bank authorized to do business in this state; 8 3. Any bank holding company as defined in the Bank 9 Holding Company Act of 1956, as amended, authorized to do 10 business in this state; 11 4. Any trust company having trust powers which it is 12 authorized to exercise in the state, which trust company 13 renders or performs services in a fiduciary capacity 14 incidental to the exercise of its trust powers; 15 5. Any person who renders investment advice 16 exclusively to insurance or investment companies; or 17 6. Any person who does not hold himself out to the 18 general public as an investment adviser and has at least 6 but 19 no more than 15 clients within 12 consecutive months in this 20 state; or. 21 7. Any person whose transactions in this state are 22 limited to those transactions described in s. 222(d) of the 23 Investment Advisers Act of 1940. Those clients listed in 24 subparagraph 5. shall not be included when determining the 25 number of clients of an investment adviser for purposes of s. 26 222(d) of the Investment Advisers Act of 1940. 27 Section 2. Effective upon this act becoming a law, 28 section 517.051, Florida Statutes, 1996 Supplement, is amended 29 to read: 30 517.051 Exempt securities.--Except as provided in 31 subsection (11), The exemptions provided herein from the 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 registration requirements of s. 517.07 are self-executing and 2 do not require any filing with the department prior to 3 claiming such exemption. Any person who claims entitlement to 4 any of these exemptions bears the burden of proving such 5 entitlement in any proceeding brought under this chapter. The 6 registration provisions of s. 517.07 do not apply to any of 7 the following securities: 8 (1) A security issued or guaranteed by the United 9 States or any territory or insular possession of the United 10 States, by the District of Columbia, or by any state of the 11 United States or by any political subdivision or agency or 12 other instrumentality thereof; provided that no person shall 13 directly or indirectly offer or sell securities, other than 14 general obligation bonds, under this subsection if the issuer 15 or guarantor is in default or has been in default any time 16 after December 31, 1975, as to principal or interest: 17 (a) With respect to an obligation issued by the issuer 18 or successor of the issuer; or 19 (b) With respect to an obligation guaranteed by the 20 guarantor or successor of the guarantor, 21 22 except by an offering circular containing a full and fair 23 disclosure as prescribed by rule of the department. 24 (2) A security issued or guaranteed by any foreign 25 government with which the United States is maintaining 26 diplomatic relations at the time of the sale or offer of sale 27 of the security, or by any state, province, or political 28 subdivision thereof having the power of taxation or 29 assessment, which security is recognized at the time it is 30 offered for sale in this state as a valid obligation by such 31 4 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 foreign government or by such state, province, or political 2 subdivision thereof issuing the security. 3 (3) A security issued or guaranteed by: 4 (a) A national bank, a federally chartered savings and 5 loan association, or a federally chartered savings bank, or 6 the initial subscription for equity securities in such 7 national bank, federally chartered savings and loan 8 association, or federally chartered savings bank; 9 (b) Any federal land bank, joint-stock land bank, or 10 national farm loan association under the provisions of the 11 Federal Farm Loan Act of July 17, 1916; 12 (c) An international bank of which the United States 13 is a member; or 14 (d) A corporation created and acting as an 15 instrumentality of the government of the United States. 16 (4) A security issued or guaranteed, as to principal, 17 interest, or dividend, by a corporation owning or operating a 18 railroad or any other public service utility; provided that 19 such corporation is subject to regulation or supervision 20 whether as to its rates and charges or as to the issue of its 21 own securities by a public commission, board, or officer of 22 the government of the United States, of any state, territory, 23 or insular possession of the United States, of any 24 municipality located therein, of the District of Columbia, or 25 of the Dominion of Canada or of any province thereof; also 26 equipment securities based on chattel mortgages, leases, or 27 agreements for conditional sale of cars, motive power, or 28 other rolling stock mortgaged, leased, or sold to or furnished 29 for the use of or upon such railroad or other public service 30 utility corporation or where the ownership or title of such 31 equipment is pledged or retained in accordance with the 5 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 provisions of the laws of the United States or of any state or 2 of the Dominion of Canada to secure the payment of such 3 equipment securities; and also bonds, notes, or other 4 evidences of indebtedness issued by a holding corporation and 5 secured by collateral consisting of any securities hereinabove 6 described; provided, further, that the collateral securities 7 equal in fair value at least 125 percent of the par value of 8 the bonds, notes, or other evidences of indebtedness so 9 secured. 10 (5) A security issued or guaranteed by any of the 11 following which are subject to the examination, supervision, 12 or control of this state or of the Federal Deposit Insurance 13 Corporation or the National Credit Union Association: 14 (a) A bank, 15 (b) A trust company, 16 (c) A savings institution, 17 (d) A building or savings and loan association, 18 (e) An international development bank, or 19 (f) A credit union; 20 21 or the initial subscription for equity securities of any 22 institution listed in paragraphs (a)-(f), provided such 23 institution is subject to the examination, supervision, or 24 control of this state. 25 (6) A security, other than common stock, providing for 26 a fixed return, which security has been outstanding in the 27 hands of the public for a period of not less than 5 years, and 28 upon which security no default in payment of principal or 29 failure to pay the fixed return has occurred for an 30 immediately preceding period of 5 years. 31 6 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 (7) Securities of nonprofit agricultural cooperatives 2 organized under the laws of this state when the securities are 3 sold or offered for sale to persons principally engaged in 4 agricultural production or selling agricultural products. 5 (8) A note, draft, bill of exchange, or banker's 6 acceptance having a unit amount of $25,000 or more which 7 arises out of a current transaction, or the proceeds of which 8 have been or are to be used for current transactions, and 9 which has a maturity period at the time of issuance not 10 exceeding 9 months exclusive of days of grace, or any renewal 11 thereof which has a maturity period likewise limited. This 12 subsection applies only to prime quality negotiable commercial 13 paper of a type not ordinarily purchased by the general 14 public; that is, paper issued to facilitate well-recognized 15 types of current operational business requirements and of a 16 type eligible for discounting by Federal Reserve banks. 17 (9) A security issued by a corporation organized and 18 operated exclusively for religious, educational, benevolent, 19 fraternal, charitable, or reformatory purposes and not for 20 pecuniary profit, no part of the net earnings of which 21 corporation inures to the benefit of any private stockholder 22 or individual; provided that no person shall directly or 23 indirectly offer or sell securities under this subsection 24 except by an offering circular containing full and fair 25 disclosure, as prescribed by the rules of the department, of 26 all material information, including, but not limited to, a 27 description of the securities offered and terms of the 28 offering, a description of the nature of the issuer's 29 business, a statement of the purpose of the offering and the 30 intended application by the issuer of the proceeds thereof, 31 7 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 and financial statements of the issuer prepared in conformance 2 with generally accepted accounting principles. 3 (10) Any insurance or endowment policy or annuity 4 contract or optional annuity contract or self-insurance 5 agreement issued by a corporation, insurance company, 6 reciprocal insurer, or risk retention group subject to the 7 supervision of the insurance commissioner or bank 8 commissioner, or any agency or officer performing like 9 functions, of any state or territory of the United States or 10 the District of Columbia. 11 (11) The offer or sale of securities pursuant to a 12 registration statement filed under the Investment Company Act 13 of 1940 by an open-end management company or unit investment 14 trust shall be entitled to exemption in the manner provided in 15 paragraph (a), provided that prior to the offer or sale the 16 registration statement has become effective. 17 (a) An application for exemption shall be filed with 18 the department and shall be accompanied by: 19 1. An application for exemption to sell which shall be 20 executed by the issuer, any person on whose behalf the 21 offering is made, a dealer registered under this chapter, or 22 any duly authorized agent of any such person, setting forth 23 the name and address of the applicant, the name and address of 24 the issuer, and the title of the securities to be offered and 25 sold. 26 2. A copy of the cover page of the initial 27 registration statement as filed with the Securities and 28 Exchange Commission unless the federal registration is 29 effective prior to filing with the department. 30 3. A copy of the dated final prospectus or current 31 prospectus, whichever is dated later. 8 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 4. A $1,000 fee. 2 5. An irrevocable written consent to service and 3 resolution as described in s. 517.101, for any initial 4 registration or upon request by the department. 5 6. Copies of such documents filed with the Securities 6 and Exchange Commission as the department may require. 7 (b) An exemption under this section is effective when 8 the federal registration statement becomes effective or as of 9 the date the application for exemption is filed with the 10 department, whichever is later, provided, in addition to the 11 items listed in paragraph (a), the department has received 12 written notification of effective registration under the 13 Investment Company Act of 1940 within 10 business days after 14 the date federal registration is granted. Failure to provide 15 to the department the information required by this subsection 16 within 60 days after the date the registration statement 17 becomes effective with the Securities and Exchange Commission 18 is a violation of this chapter. 19 (c) The exemption is effective for a period of 12 20 months after the date of effectiveness in this state, unless 21 renewed prior to expiration. 22 (d) In lieu of filing with the department the 23 application, fees, and documents required for exemption, the 24 department may establish procedures for the deposit of fees 25 and filing of documents to be made through the Securities 26 Registration Depository as developed under contract with the 27 North American Securities Administrators Association, Inc., 28 provided such procedures shall provide the department with the 29 information and data required by this subsection. If a filer 30 chooses not to use the Securities Registration Depository, 31 9 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 such filings, including the statutory fee, may be made 2 directly with the department. 3 Section 3. Effective upon this act becoming a law, 4 section 517.07, Florida Statutes, is amended to read: 5 517.07 Registration of securities.-- 6 (1) It is unlawful and a violation of this chapter for 7 any person to sell or offer to sell a security within this 8 state unless the security is exempt under s. 517.051, is sold 9 in a transaction exempt under s. 517.061, is a federal covered 10 security, or is registered pursuant to this chapter. 11 (2) No securities that are required to be registered 12 under this chapter except of a class exempt under any of the 13 provisions of s. 517.051 or unless sold in any transaction 14 exempt under any of the provisions of s. 517.061 shall be sold 15 or offered for sale within this state unless such securities 16 have been registered pursuant to this chapter, as hereinafter 17 defined, and unless prior to each sale the purchaser is 18 furnished with a prospectus meeting the requirements of rules 19 adopted by the department. The department shall issue a 20 permit when such registration has been granted by the 21 department. 22 (3)(1) The department shall issue a permit when 23 registration has been granted by the department. A permit to 24 sell securities is effective for 1 year from the date it was 25 granted. Registration of securities shall be deemed to 26 include the registration of rights to subscribe to such 27 securities if the application under s. 517.081 or s. 517.082 28 for registration of such securities includes a statement that 29 such rights are to be issued. 30 (4)(2) A record of the registration of securities 31 shall be kept in the office of the department, in which 10 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 register of securities shall also be recorded any orders 2 entered by the department with respect to such securities. 3 Such register, and all information with respect to the 4 securities registered therein, shall be open to public 5 inspection. 6 (5)(3) Notwithstanding any other provision of this 7 section, offers of securities required to be registered by 8 this section may be made in this state before the registration 9 of such securities if the offers are made in conformity with 10 rules adopted by the department. 11 Section 4. Subsection (3) of section 517.081, Florida 12 Statutes, is amended to read: 13 517.081 Registration procedure.-- 14 (3) The department may require the applicant to submit 15 to the department the following information concerning the 16 issuer and such other relevant information as the department 17 may in its judgment deem necessary to enable it to ascertain 18 whether such securities shall be registered pursuant to the 19 provisions of this section: 20 (a) The names and addresses of the directors, 21 trustees, and officers, if the issuer be a corporation, 22 association, or trust; of all the partners, if the issuer be a 23 partnership; or of the issuer, if the issuer be an individual. 24 (b) The location of the issuer's principal business 25 office and of its principal office in this state, if any. 26 (c) The general character of the business actually to 27 be transacted by the issuer and the purposes of the proposed 28 issue. 29 (d) A statement of the capitalization of the issuer. 30 (e) A balance sheet showing the amount and general 31 character of its assets and liabilities on a day not more than 11 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 90 days prior to the date of filing such balance sheet or such 2 longer period of time, not exceeding 6 months, as the 3 department may permit at the written request of the issuer on 4 a showing of good cause therefor. 5 (f) A detailed statement of the plan upon which the 6 issuer proposes to transact business. 7 (g)1. A specimen copy of the security and a copy of 8 any circular, prospectus, advertisement, or other description 9 of such securities. 10 2. The department shall adopt a form for a simplified 11 offering circular to be used solely by corporations to 12 register, under this section, securities of the corporation 13 that are sold in offerings in which the aggregate offering 14 price in any consecutive 12-month period does not exceed the 15 lesser of the aggregate offering price in 17 C.F.R. s. 230.251 16 or $5 million. The following issuers shall not be eligible to 17 submit a simplified offering circular adopted pursuant to this 18 subparagraph: 19 a. An issuer seeking to register securities for resale 20 by persons other than the issuer. 21 b. An issuer who is subject to any of the 22 disqualifications described in 17 C.F.R. s. 230.262, adopted 23 pursuant to the Securities Act of 1933, or who has been or is 24 engaged or is about to engage in an activity that would be 25 grounds for denial, revocation, or suspension under s. 26 517.111. For purposes of this subparagraph, an issuer includes 27 an issuer's director, officer, shareholder who owns at least 28 10 percent of the shares of the issuer, promoter, or selling 29 agent of the securities to be offered or any officer, 30 director, or partner of such selling agent. 31 12 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 c. An issuer who is a development-stage company that 2 either has no specific business plan or purpose or has 3 indicated that its business plan is to merge with an 4 unidentified company or companies. 5 d. An issuer of offerings in which the specific 6 business or properties cannot be described. 7 e. Any issuer the department determines is ineligible 8 if the form would not provide full and fair disclosure of 9 material information for the type of offering to be registered 10 by the issuer. 11 f. Any corporation which has failed to provide the 12 department the reports required for a previous offering 13 registered pursuant to this subparagraph. 14 15 As a condition precedent to qualifying for use of the 16 simplified offering circular, a corporation shall agree to 17 provide the department with an annual financial report 18 containing a balance sheet as of the end of the issuer's 19 fiscal year and a statement of income for such year, prepared 20 in accordance with generally accepted accounting principles 21 and accompanied by an independent accountant's report. If the 22 issuer has more than 100 security holders at the end of a 23 fiscal year, the financial statements must be audited. Annual 24 financial reports must be filed with the department within 90 25 days after the close of the issuer's fiscal year for each of 26 the first 5 years following the effective date of the 27 registration. 28 (h) A statement of the amount of the issuer's income, 29 expenses, and fixed charges during the last fiscal year or, if 30 in actual business less than 1 year, then for such time as the 31 issuer has been in actual business. 13 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 (i) A statement of the issuer's cash sources and 2 application during the last fiscal year or, if in actual 3 business less than 1 year, then for such time as the issuer 4 has been in actual business. 5 (j) A statement showing the maximum price at which 6 such security is proposed to be sold, together with the 7 maximum amount of commission, including expenses, or other 8 form of remuneration to be paid in cash or otherwise, directly 9 or indirectly, for or in connection with the sale or offering 10 for sale of such securities. 11 (k) A copy of the opinion or opinions of counsel 12 concerning the legality of the issue or other matters which 13 the department may determine to be relevant to the issue. 14 (l) A detailed statement showing the items of cash, 15 property, services, patents, good will, and any other 16 consideration in payment for which such securities have been 17 or are to be issued. 18 (m) The amount of securities to be set aside and 19 disposed of and a statement of all securities issued from time 20 to time for promotional purposes. 21 (n) If the issuer is a corporation, there shall be 22 filed with the application a copy of its articles of 23 incorporation with all amendments and of its existing bylaws, 24 if not already on file in the department. If the issuer is a 25 trustee, there shall be filed with the application a copy of 26 all instruments by which the trust is created or declared and 27 in which it is accepted and acknowledged. If the issuer is a 28 partnership, unincorporated association, joint-stock company, 29 or any other form of organization whatsoever, there shall be 30 filed with the application a copy of its articles of 31 14 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 partnership or association and all other papers pertaining to 2 its organization, if not already on file in the department. 3 Section 5. Effective upon this act becoming a law, 4 subsection (1) of section 517.082, Florida Statutes, 1996 5 Supplement, is amended to read: 6 517.082 Notification registration.-- 7 (1) Except as provided in subsection (3) or exempt 8 pursuant to s. 517.051(11), securities offered or sold 9 pursuant to a registration statement filed under the 10 Securities Act of 1933 or the Investment Company Act of 1940 11 shall be entitled to registration by notification in the 12 manner provided in subsection (2), provided that prior to the 13 offer or sale the registration statement has become effective. 14 Section 6. Effective upon this act becoming a law, 15 subsection (1) of section 517.101, Florida Statutes, 1996 16 Supplement, is amended to read: 17 517.101 Consent to service.-- 18 (1) Upon any initial application for registration 19 under s. 517.081 or s. 517.082, upon any application for 20 exemption pursuant to s. 517.051(11), or upon request of the 21 department, the issuer shall file with such application the 22 irrevocable written consent of the issuer that in suits, 23 proceedings, and actions growing out of the violation of any 24 provision of this chapter, the service on the department of a 25 notice, process, or pleading therein, authorized by the laws 26 of this state, shall be as valid and binding as if due service 27 had been made on the issuer. 28 Section 7. Subsection (10) of section 517.12, Florida 29 Statutes, 1996 Supplement, is amended, and a new subsection 30 (19) is added to said section, to read: 31 15 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 517.12 Registration of dealers, associated persons, 2 investment advisers, and branch offices.-- 3 (10) An applicant for registration shall pay an 4 assessment fee of $200, in the case of a dealer or investment 5 adviser, or $40, in the case of an associated person. The 6 assessment fee of an associated person shall be reduced to $30 7 upon a determination, by final order of the department, that 8 sufficient funds have been allocated to the Securities 9 Guaranty Fund pursuant to s. 517.1203 to satisfy all valid 10 claims filed in accordance with s. 517.1203(2). An associated 11 person not having current fingerprint cards filed with the 12 National Association of Securities Dealers or a national 13 securities exchange registered with the Securities and 14 Exchange Commission shall be assessed an additional fee to 15 cover the cost for said fingerprint cards to be processed by 16 the department. Such fee shall be determined by rule of the 17 department. Each dealer and each investment adviser shall pay 18 an assessment fee of $100 for each office in this state, 19 except its designated principal office. Such fees become the 20 revenue of the state, except for those assessments provided 21 for under s. 517.131(1) until such time as the Securities 22 Guaranty Fund satisfies the statutory limits, and are not 23 returnable in the event that registration is withdrawn or not 24 granted. 25 (19) The registration requirements of this section 26 which apply to investment advisers and associated persons do 27 not apply to a commodity trading adviser who: 28 (a) Is registered as such with the Commodity Futures 29 Trading Commission pursuant to the Commodity Exchange Act. 30 (b) Advises or exercises trading discretion, with 31 respect to foreign currency options listed and traded 16 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 exclusively on the Philadelphia Stock Exchange, on behalf of 2 an "appropriate person" as defined by the Commodity Exchange 3 Act. 4 5 The exemption provided in this subsection does not apply to a 6 commodity trading adviser who engages in other activities that 7 require registration under this chapter. 8 Section 8. Subsection (1) of section 517.1203, Florida 9 Statutes, 1996 Supplement, is amended to read: 10 517.1203 Allocation and disbursement of assessment 11 fees.-- 12 (1) Notwithstanding s. 517.131(1) and until the 13 department determines by final order that sufficient funds 14 have been allocated to the Securities Guaranty Fund pursuant 15 to this section to satisfy all valid claims filed in 16 accordance with subsection (2), an additional amount equal to 17 25 percent of all revenues received as assessment fees 18 pursuant to s. 517.12(10) and (11) from persons applying for 19 or renewing registrations as associated persons shall be 20 allocated to the Securities Guaranty Fund and disbursed as 21 provided in this section. This assessment fee shall be part 22 of the regular license fee and shall be transferred to or 23 deposited into the Securities Guaranty Fund. The moneys 24 allocated to the Securities Guaranty Fund under this section 25 shall not be included in the calculation of the allocation of 26 the assessment fees referred to in s. 517.131(1)(b). Moneys 27 allocated under this section in excess of the valid claims 28 filed pursuant to subsection (2) shall be allocated to the 29 Anti-Fraud Trust Fund. 30 31 17 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1097 614-100B-97 1 Section 9. Paragraph (a) of subsection (1) of section 2 517.131, Florida Statutes, 1996 Supplement, is amended to 3 read: 4 517.131 Securities Guaranty Fund.-- 5 (1)(a) The Treasurer shall establish a Securities 6 Guaranty Fund. An amount not exceeding 20 percent of all 7 revenues received as assessment fees pursuant to s. 517.12(10) 8 and (11) for dealers and investment advisers and an amount not 9 exceeding 10 percent of all revenues received as assessment 10 fees pursuant to s. 517.12(10) and (11) for associated persons 11 shall be allocated to the fund. An additional amount not 12 exceeding 3.5 percent of all revenues received as assessment 13 fees for associated persons pursuant to s. 517.12(10) and (11) 14 shall be allocated to the Securities Guaranty Fund upon a 15 determination, by final order of the department, that 16 sufficient funds have been allocated to the fund pursuant to 17 s. 517.1203 to satisfy all valid claims filed in accordance 18 with s. 517.1203(2). This assessment fee shall be part of the 19 regular license fee and shall be transferred to or deposited 20 in the Securities Guaranty Fund. 21 Section 10. Except as otherwise provided herein, this 22 act shall take effect October 1, 1997. 23 24 ***************************************** 25 HOUSE SUMMARY 26 Deletes an exemption from securities registration 27 requirements for investment companies. Prohibits the sale or offer to sell other than specified securities. 28 Authorizes the Department of Banking and Finance to adopt simplified offering circular forms for specified issuers 29 for uniformity purposes. Exempts commodity trading advisers from specified registration requirements. 30 Reduces assessment fees for associated persons. Revises provisions relating to allocations to the Securities 31 Guaranty Fund. See bill for details. 18