Senate Bill sb2198

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    Florida Senate - 2007                                  SB 2198

    By Senator Gaetz





    4-1119A-07

  1                      A bill to be entitled

  2         An act relating to viatical settlement

  3         providers; amending s. 626.89, F.S.; requiring

  4         authorized administrators to file a financial

  5         statement for each preceding calendar year or

  6         fiscal year as appropriate; requiring that an

  7         audited financial statement be filed within 6

  8         months after the end of the administrator's

  9         fiscal year; amending s. 626.9913, F.S.;

10         providing for annual statements required by the

11         Financial Services Commission to include an

12         annual audited financial statement of the

13         viatical settlement provider which is prepared

14         in accordance with general accounting

15         principles; specifying the timeframe to be

16         covered by the annual statement; providing an

17         effective date.

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

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21         Section 1.  Subsections (1) and (2) of section 626.89,

22  Florida Statutes, are amended to read:

23         626.89  Annual financial statement and filing fee;

24  notice of change of ownership.--

25         (1)  Each authorized administrator shall file with the

26  office a full and true statement of its financial condition,

27  transactions, and affairs. The statement shall be filed

28  annually on or before March 1 or within such extension of time

29  therefor as the office for good cause may have granted and

30  shall be for the preceding calendar year or fiscal year as

31  applicable. The statement shall be in such form and contain

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    Florida Senate - 2007                                  SB 2198
    4-1119A-07




 1  such matters as the commission prescribes and shall be

 2  verified by at least two officers of such administrator.

 3         (2)  Each authorized administrator shall also file an

 4  audited financial statement performed by an independent

 5  certified public accountant. The audited financial statement

 6  shall be filed with the office on or before June 1 for the

 7  preceding calendar year ending December 31, or within 6 months

 8  after the end of the administrator's preceding fiscal year. An

 9  audited financial statement prepared on a consolidated basis

10  must include a columnar consolidating or combining worksheet

11  that must be filed with the statement and must comply with the

12  following:

13         (a)  Amounts shown on the consolidated audited

14  financial statement must be shown on the worksheet;

15         (b)  Amounts for each entity must be stated separately;

16  and

17         (c)  Explanations of consolidating and eliminating

18  entries must be included.

19         Section 2.  Subsection (2) of section 626.9913, Florida

20  Statutes, is amended to read:

21         626.9913  Viatical settlement provider license

22  continuance; annual report; fees; deposit.--

23         (2)  Annually, on or before March 1, the viatical

24  settlement provider licensee shall file a statement containing

25  information the commission requires and shall pay to the

26  office a license fee in the amount of $500. After December 31,

27  2007, the annual statement must shall include an annual

28  audited financial statement of the viatical settlement

29  provider statements prepared in accordance with generally

30  accepted accounting principles by an independent certified

31  public accountant covering a 12-month period ending on a day

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    Florida Senate - 2007                                  SB 2198
    4-1119A-07




 1  falling during as of the last day of the preceding calendar

 2  year. If the audited financial statement has not been

 3  completed, however, the licensee shall include in its annual

 4  statement an unaudited financial statement for the preceding

 5  calendar year and an affidavit from an officer of the licensee

 6  stating that the audit has not been completed. In this event,

 7  the licensee shall submit the audited statement on or before

 8  June 1. The annual statement, due on or before March 1 each

 9  year, shall also provide the office with a report of all life

10  expectancy providers who have provided life expectancies

11  directly or indirectly to the viatical settlement provider for

12  use in connection with a viatical settlement contract or a

13  viatical settlement investment. A viatical settlement provider

14  shall include in all statements filed with the office all

15  information requested by the office regarding a related

16  provider trust established by the viatical settlement

17  provider. The office may require more frequent reporting.

18  Failure to timely file the annual statement or the audited

19  financial statement or to timely pay the license fee is

20  grounds for immediate suspension of the license. The

21  commission may by rule require all or part of the statements

22  or filings required under this section to be submitted by

23  electronic means in a computer-readable form compatible with

24  the electronic data format specified by the commission.

25         Section 3.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007                                  SB 2198
    4-1119A-07




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 2                          SENATE SUMMARY

 3    Requires that authorized administrators file a financial
      statement for each preceding calendar year or fiscal year
 4    as appropriate. Requires that an audited financial
      statement be filed within 6 months after the end of the
 5    administrator's fiscal year. Provides that annual
      statements submitted by viatical settlement providers to
 6    the Financial Services Commission include an annual
      audited financial statement prepared in accordance with
 7    general accounting rules. Specifies a timeframe for the
      annual statement.
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