| 1 | Representative(s) Arza offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between line(s) 629 and 630 insert: |
| 5 | Section 14. Subsection (8) is added to section 1004.28, |
| 6 | Florida Statutes, to read: |
| 7 | 1004.28 Direct-support organizations; use of property; |
| 8 | board of directors; activities; audit; facilities.-- |
| 9 | (8) TRUST AUTHORIZATION.--A direct-support organization is |
| 10 | hereby authorized to establish a trust for the purpose of |
| 11 | raising funds for its affiliated university. A trust established |
| 12 | under this section is granted the identical insurable interest |
| 13 | as that of a direct-support organization under s. 627.404 and, |
| 14 | as such, may procure or cause to be procured a combination of |
| 15 | life insurance policies and annuity contracts on the life of |
| 16 | consenting individual insureds who provide an affidavit stating |
| 17 | they have a minimum net worth of $5 million at the time of the |
| 18 | transaction. For the protection of the individual insureds, the |
| 19 | identity of such insureds shall not be disclosed by any party to |
| 20 | the transaction other than an individual insured who chooses to |
| 21 | disclose his or her own identity. Such transaction structures |
| 22 | involving the procurement or funding of the procurement of a |
| 23 | life insurance policy or annuity contract pursuant to this |
| 24 | section are subject to chapter 517 or federal securities law and |
| 25 | are prohibited without the prior approval of the Department of |
| 26 | Financial Services. The minimum percentage or amount of the life |
| 27 | insurance policy reasonably anticipated to be ultimately paid to |
| 28 | the direct-support organization may not be less than 5 percent |
| 29 | of the death benefit proceeds of the life insurance policy when |
| 30 | the transaction is executed. Any investment in the trust may |
| 31 | only be made by a qualified institutional buyer and such buyer |
| 32 | may not procure or hold any direct interest in the life |
| 33 | insurance policies or the annuity contracts or the benefits |
| 34 | therefrom except as part of a securitized transaction subject to |
| 35 | chapter 517 or federal securities law. The life insurance |
| 36 | policies procured or caused to be procured by the trust may not |
| 37 | be assigned or transferred by the trust and the ownership or |
| 38 | beneficiary designation in favor of the trust may not be |
| 39 | changed. |
| 40 |
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| 41 | ================ T I T L E A M E N D M E N T ============= |
| 42 | Remove line(s) 49 and insert: |
| 43 | reporting; amending s. 1004.28, F.S.; authorizing a state |
| 44 | university direct-support organization to establish a trust for |
| 45 | purposes of raising funds for its affiliated university; |
| 46 | authorizing procurement of life insurance policies and annuity |
| 47 | contracts by a trust; amending s. 1004.65, F.S.; including |
| 48 | community |