Senate Bill sb1100c1

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    Florida Senate - 2007                           CS for SB 1100

    By the Committee on General Government Appropriations; and
    Senator Alexander




    601-2190-07

  1                      A bill to be entitled

  2         An act relating to the regulation of securities

  3         transactions; amending s. 517.12, F.S.;

  4         increasing the registration and filing fees for

  5         dealers and investment advisers who deal or

  6         trade in securities; deleting provisions

  7         providing for an assessment fee to be allocated

  8         to the Securities Guaranty Fund; increasing the

  9         fees imposed for making or renewing a notice

10         filing; amending s. 517.1201, F.S.; increasing

11         the filing fees and late fees for federal

12         covered advisers who engage in certain

13         securities transactions; repealing ss. 517.1203

14         and 517.1204, F.S., relating to the allocation

15         and disbursement of assessment fees and the

16         Investment Fraud Restoration Financing

17         Corporation; amending s. 517.131, F.S.;

18         revising the formula for transferring revenues

19         received as assessment fees into the Securities

20         Guaranty Fund; amending s. 517.315 , F.S.;

21         revising requirements for the Office of

22         Financial Regulation with respect to the

23         deposit of fees collected under ch. 517, F.S.;

24         providing an effective date.

25  

26  Be It Enacted by the Legislature of the State of Florida:

27  

28         Section 1.  Subsection (10) and paragraphs (b) and (e)

29  of subsection (17) of section 517.12, Florida Statutes, are

30  amended to read:

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 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 $250 $200, in the case of a dealer or

 5  investment adviser, or $70 $40, in the case of an associated

 6  person. The assessment fee of an associated person shall be

 7  reduced to $30, but only after the office determines, by final

 8  order, that sufficient funds have been allocated to the

 9  Securities Guaranty Fund pursuant to s. 517.1203 to satisfy

10  all valid claims filed in accordance with s. 517.1203(2) and

11  after all amounts payable under any service contract entered

12  into by the office pursuant to s. 517.1204, and all notes,

13  bonds, certificates of indebtedness, other obligations, or

14  evidences of indebtedness secured by such notes, bonds,

15  certificates of indebtedness, or other obligations, have been

16  paid or provision has been made for the payment of such

17  amounts, notes, bonds, certificates of indebtedness, other

18  obligations, or evidences of indebtedness. An associated

19  person may be assessed an additional fee to cover the cost for

20  the fingerprint cards to be processed by the office. Such fee

21  shall be determined by rule of the commission. Each dealer and

22  each investment adviser shall pay an assessment fee of $100

23  for each office in this state. Such fees become the revenue of

24  the state, except for those assessments provided for under s.

25  517.131(1) until such time as the Securities Guaranty Fund

26  satisfies the statutory limits, and are not returnable in the

27  event that registration is withdrawn or not granted.

28         (17)

29         (b)  A notice filing under this subsection must consist

30  of documents the commission by rule requires to be filed,

31  together with a consent to service of process and a

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 1  nonrefundable filing fee of $250 $200. The commission may

 2  establish by rule procedures for the deposit of fees and the

 3  filing of documents to be made by electronic means, if such

 4  procedures provide the office with the information and data

 5  required by this section.

 6         (e)  A notice filing is effective upon receipt by the

 7  office. A notice filing expires on December 31 of the year in

 8  which the filing becomes effective unless the Canadian dealer

 9  has renewed the filing on or before that date. A Canadian

10  dealer may annually renew a notice filing by furnishing to the

11  office such information as the office requires together with a

12  renewal fee of $250 $200 and the payment of any amount due and

13  owing the office pursuant to any agreement with the office.

14  Any Canadian dealer who has not renewed a notice filing by the

15  time a current notice filing expires may request reinstatement

16  of such notice filing by filing with the office, on or before

17  January 31 of the year following the year the notice filing

18  expires, such information as the commission requires by rule,

19  together with the payment of $250 $200 and a late fee of $250

20  $200. A reinstatement of a notice filing granted by the office

21  during the month of January is effective retroactively to

22  January 1 of that year.

23         Section 2.  Subsections (1) and (2) of section

24  517.1201, Florida Statutes, are amended to read:

25         517.1201  Notice filing requirements for federal

26  covered advisers.--

27         (1)  It is unlawful for a person to transact business

28  in this state as a federal covered adviser unless such person

29  has made a notice filing with the office. A notice filing

30  under this section shall consist of a copy of those documents

31  that have been filed or are required to be filed by the

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 1  federal covered adviser with the Securities and Exchange

 2  Commission that the Financial Services Commission by rule

 3  requires to be filed, together with a consent to service of

 4  process and a filing fee of $250 $200. The commission may

 5  establish by rule procedures for the deposit of fees and the

 6  filing of documents to be made through electronic means, if

 7  the procedures provide to the office the information and data

 8  required by this section.

 9         (2)  A notice filing shall be effective upon receipt.

10  A notice filing shall expire on December 31 of the year in

11  which the filing became effective unless the federal covered

12  adviser has renewed the filing on or before that date. A

13  federal covered adviser may renew a notice filing by

14  furnishing to the office such information that has been filed

15  or is required to be filed with the Securities and Exchange

16  Commission, as the Financial Services Commission or office may

17  require, together with a renewal fee of $250 $200 and the

18  payment of any amount due and owing the office pursuant to any

19  agreement with the office. Any federal covered adviser who has

20  not renewed a notice filing by the time a current notice

21  filing expires may request reinstatement of such notice filing

22  by filing with the office, on or before January 31 of the year

23  following the year the notice filing expires, such information

24  that has been filed or is required to be filed with the

25  Securities and Exchange Commission as may be required by the

26  Financial Services Commission or office, together with the

27  payment of $250 $200 and a late fee equal to $250 $200. Any

28  reinstatement of a notice filing granted by the office during

29  the month of January shall be deemed effective retroactive to

30  January 1 of that year.

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 1         Section 3.  Sections 517.1203 and 517.1204, Florida

 2  Statutes, are repealed.

 3         Section 4.  Subsection (1) of section 517.131, Florida

 4  Statutes, is amended to read:

 5         517.131  Securities Guaranty Fund.--

 6         (1)(a)  The Chief Financial Officer shall establish a

 7  Securities Guaranty Fund. An amount not exceeding 20 percent

 8  of all revenues received as assessment fees pursuant to s.

 9  517.12(10) and (11) for dealers and investment advisers or s.

10  517.1201 for federal covered advisers and an amount not

11  exceeding 10 percent of all revenues received as assessment

12  fees pursuant to s. 517.12(10) and (11) for associated persons

13  shall be allocated to the fund. An additional amount not

14  exceeding 3.5 percent of all revenues received as assessment

15  fees for associated persons pursuant to s. 517.12(10) and (11)

16  shall be allocated to the Securities Guaranty Fund but only

17  after the office determines, by final order, that sufficient

18  funds have been allocated to the fund pursuant to s. 517.1203

19  to satisfy all valid claims filed in accordance with s.

20  517.1203(2) and after all amounts payable under any service

21  contract entered into by the office pursuant to s. 517.1204,

22  and all notes, bonds, certificates of indebtedness, other

23  obligations, or evidences of indebtedness secured by such

24  notes, bonds, certificates of indebtedness, or other

25  obligations, have been paid or provision has been made for the

26  payment of such amounts, notes, bonds, certificates of

27  indebtedness, other obligations, or evidences of indebtedness.

28  This assessment fee shall be part of the regular license fee

29  and shall be transferred to or deposited in the Securities

30  Guaranty Fund.

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 1         (b)  If the fund at any time exceeds $1.5 million,

 2  transfer allocation of assessment fees to this fund shall be

 3  discontinued at the end of that license year, and transfer of

 4  such assessment fees shall not be resumed reimposed unless the

 5  fund is reduced below $1 million by disbursement made in

 6  accordance with s. 517.141.

 7         Section 5.  Section 517.315, Florida Statutes, is

 8  amended to read:

 9         517.315  Fees.--All fees and charges of any nature

10  collected by the office pursuant to this chapter shall be

11  disbursed as follows:

12         (1)  The office shall transfer the amount of fees

13  required to be deposited into the Securities Guaranty Fund

14  pursuant to s. 517.131;

15         (2)  After the transfer required in subsection (1), the

16  office shall transfer 50 percent of the remaining fees and

17  charges to the General Revenue Fund; and

18         (3)  All remaining fees shall be deposited into the

19  Regulatory Trust Fund. Such funds shall be used to pay the

20  office's administrative costs related to its duties and

21  responsibilities under this chapter., except the fees and

22  charges collected pursuant to s. 517.131, shall be paid into

23  the State Treasury and credited to the General Revenue Fund;

24  and an appropriation shall be made annually of necessary funds

25  for the administration of the provisions of this chapter.

26         Section 6.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007                           CS for SB 1100
    601-2190-07




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1100

 3                                 

 4  Increases the registration, renewal, and late fees of dealer
    and investment adviser firms from $200 to $250.  Increases the
 5  fee for persons associated with dealers and firms from $30 to
    $70.
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    Provides for the distribution of securities transaction fees
 7  to the General Revenue Fund and the Regulatory Trust Fund
    within the Office of Financial Regulation.
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