Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 180
       
       
       
       
       
       
                                Ì491330pÎ491330                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/31/2023           .                                
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       The Committee on Banking and Insurance (Gruters) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 517.021, Florida Statutes, is reordered
    6  and amended to read:
    7         517.021 Definitions.—When used in this chapter, unless the
    8  context otherwise indicates, the following terms have the
    9  following respective meanings:
   10         (1) “Accredited investor” shall be defined by rule of the
   11  commission in accordance with the Securities and Exchange
   12  Commission Rule 501, 17 C.F.R. s. 230.501.
   13         (2) “Affiliate” means a person that directly, or indirectly
   14  through one or more intermediaries, controls, is controlled by,
   15  or is under common control with an applicant or registrant.
   16         (3)(2) “Associated person” means:
   17         (a)1. With respect to a dealer, a natural person who is
   18  employed, appointed, or authorized by a dealer and who
   19  represents the dealer in effecting or attempting to effect
   20  purchases or sales of securities.
   21         2.The term does not include the following:
   22         a.A dealer.
   23         b.A partner, an officer, or a director of a dealer or a
   24  person having a similar status or performing similar functions
   25  as a dealer, unless such person is specified in subparagraph 1.
   26         c.A dealer’s employee whose function is only clerical or
   27  ministerial.
   28         d.A person whose transactions in this state are limited to
   29  those transactions described in s. 15(i)(3) of the Securities
   30  Exchange Act of 1934, as amended.
   31         (b)1.With respect to an investment adviser, a natural
   32  person, including, but not limited to, a partner, an officer, a
   33  director, or a branch manager, or a person occupying a similar
   34  status or performing similar functions, who:
   35         a.Is employed by or associated with, or is subject to the
   36  supervision and control of, an investment adviser registered or
   37  required to be registered under this chapter; and
   38         b.Does any of the following:
   39         (I)Makes any recommendation or otherwise gives investment
   40  advice regarding securities.
   41         (II)Manages accounts or portfolios of clients.
   42         (III)Determines which recommendations or advice regarding
   43  securities should be given.
   44         (IV)Receives compensation to solicit, offer, or negotiate
   45  for the sale of investment advisory services.
   46         (V)Supervises employees who perform a function under this
   47  sub-subparagraph.
   48         2.The term does not include the following:
   49         a.An investment adviser.
   50         b.An employee whose function is only clerical or
   51  ministerial or investment adviser, any of the following:
   52         1.Any partner, officer, director, or branch manager of a
   53  dealer or investment adviser or any person occupying a similar
   54  status or performing similar functions;
   55         2.Any natural person directly or indirectly controlling or
   56  controlled by such dealer or investment adviser, other than an
   57  employee whose function is only clerical or ministerial; or
   58         3.Any natural person, other than a dealer, employed,
   59  appointed, or authorized by a dealer, investment adviser, or
   60  issuer to sell securities in any manner or act as an investment
   61  adviser as defined in this section.
   62  
   63  The partners of a partnership and the executive officers of a
   64  corporation or other association registered as a dealer, and any
   65  person whose transactions in this state are limited to those
   66  transactions described in s. 15(h)(2) of the Securities Exchange
   67  Act of 1934, are not “associated persons” within the meaning of
   68  this definition.
   69         (c)(b) With respect to a federal covered adviser, a natural
   70  any person who is an investment adviser representative and who
   71  has a place of business in this state, as such terms are defined
   72  in Rule 203A-3 of the Securities and Exchange Commission adopted
   73  under the Investment Advisers Act of 1940, as amended.
   74         (4)(3) “Boiler room” means an enterprise in which two or
   75  more persons engage in telephone communications with members of
   76  the public using two or more telephones at one location, or at
   77  more than one location in a common scheme or enterprise.
   78         (5)(4) “Branch office” means any location in this state of
   79  a dealer or investment adviser at which one or more associated
   80  persons regularly conduct the business of rendering investment
   81  advice or effecting any transactions in, or inducing or
   82  attempting to induce the purchase or sale of, any security or
   83  any location that is held out as such. The commission may adopt
   84  by rule exceptions to this definition for dealers in order to
   85  maintain consistency with the definition of a branch office used
   86  by self-regulatory organizations authorized by the Securities
   87  and Exchange Commission, including, but not limited to, the
   88  Financial Industry Regulatory Authority. The commission may
   89  adopt by rule exceptions to this definition for investment
   90  advisers.
   91         (6)(7) “Commission” means the Financial Services
   92  Commission.
   93         (7)(5) “Control,” including the terms “controlling,”
   94  “controlled by,” and “under common control with,” means the
   95  possession, directly or indirectly, of the power to direct or
   96  cause the direction of the management or policies of a person,
   97  whether through the ownership of voting securities, by contract,
   98  or otherwise.
   99         (8)(6)(a) “Dealer” includes, unless otherwise specified, a
  100  person, other than an associated person of a dealer, that
  101  engages, for all or part of the person’s time, directly or
  102  indirectly, as agent or principal in the business of offering,
  103  buying, selling, or otherwise dealing or trading in securities
  104  issued by another person any of the following:
  105         1.Any person, other than an associated person registered
  106  under this chapter, who engages, either for all or part of her
  107  or his time, directly or indirectly, as broker or principal in
  108  the business of offering, buying, selling, or otherwise dealing
  109  or trading in securities issued by another person.
  110         2.Any issuer who through persons directly compensated or
  111  controlled by the issuer engages, either for all or part of her
  112  or his time, directly or indirectly, in the business of offering
  113  or selling securities which are issued or are proposed to be
  114  issued by the issuer.
  115         (b) The term “dealer” does not include the following:
  116         (a)A licensed practicing attorney who renders or performs
  117  any such services in connection with the regular practice of the
  118  attorney’s profession.
  119         (b)A bank authorized to do business in this state, except
  120  nonbank subsidiaries of a bank.
  121         (c)A trust company having trust powers that it is
  122  authorized to exercise in this state, which renders or performs
  123  services in a fiduciary capacity incidental to the exercise of
  124  its trust powers.
  125         (d)A wholesaler selling exclusively to dealers.
  126         (e)A person buying and selling for the person’s own
  127  account exclusively through a registered dealer or stock
  128  exchange.
  129         (f)An issuer.
  130         (g)A natural person representing an issuer in the
  131  purchase, sale, or distribution of the issuer’s own securities
  132  if such person:
  133         1.Is an officer, a director, a limited liability company
  134  manager or managing member, or a bona fide employee of the
  135  issuer;
  136         2.Has not participated in the distribution or sale of
  137  securities for any issuer for which such person was, within the
  138  preceding 12 months, an officer, a director, a limited liability
  139  company manager or managing member, or a bona fide employee;
  140         3.Primarily performs, or is intended to perform at the end
  141  of the distribution, substantial duties for, or on behalf of,
  142  the issuer other than in connection with transactions in
  143  securities; and
  144         4.Does not receive a commission, compensation, or other
  145  consideration for the completed sale of the issuer’s securities
  146  apart from the compensation received for regular duties to the
  147  issuer.
  148         1.Any licensed practicing attorney who renders or performs
  149  any of such services in connection with the regular practice of
  150  her or his profession;
  151         2.Any bank authorized to do business in this state, except
  152  nonbank subsidiaries of a bank;
  153         3.Any trust company having trust powers which it is
  154  authorized to exercise in this state, which renders or performs
  155  services in a fiduciary capacity incidental to the exercise of
  156  its trust powers;
  157         4.Any wholesaler selling exclusively to dealers;
  158         5.Any person buying and selling for her or his own account
  159  exclusively through a registered dealer or stock exchange; or
  160         6.Pursuant to s. 517.061(11), any person associated with
  161  an issuer of securities if such person is a bona fide employee
  162  of the issuer who has not participated in the distribution or
  163  sale of any securities within the preceding 12 months and who
  164  primarily performs, or is intended to perform at the end of the
  165  distribution, substantial duties for, or on behalf of, the
  166  issuer other than in connection with transactions in securities.
  167         (9) “Federal covered adviser” means a person that who is
  168  registered or required to be registered under s. 203 of the
  169  Investment Advisers Act of 1940, as amended. The term “federal
  170  covered adviser” does not include any person that who is
  171  excluded from the definition of investment adviser under
  172  subparagraphs (14)(b)1.-8.
  173         (10) “Federal covered security” means a any security that
  174  is a covered security under s. 18(b) of the Securities Act of
  175  1933, as amended, or rules and regulations adopted thereunder.
  176         (11) “Guarantor” means a person that who agrees in writing,
  177  or that who holds itself out to the public as agreeing, to pay
  178  the indebtedness of another when due, including, without
  179  limitation, payments of principal and interest on a bond,
  180  debenture, note, or other evidence of indebtedness, without
  181  resort by the holder to any other obligor, whether or not such
  182  writing expressly states that the person signing is signing as a
  183  guarantor. The obligation of a guarantor hereunder shall be a
  184  continuing, absolute, and unconditional guaranty of payment,
  185  without regard to the validity, regularity, or enforceability of
  186  the underlying indebtedness.
  187         (12) “Guaranty” means an agreement in a writing in which
  188  one party either agrees, or holds itself out to the public as
  189  agreeing, to pay the indebtedness of another when due,
  190  including, without limitation, payments of principal and
  191  interest on a bond, debenture, note, or other evidence of
  192  indebtedness, without resort by the holder to any other obligor,
  193  whether or not such writing expressly states that the person
  194  signing is signing as a guarantor. An agreement that is not
  195  specifically denominated as a guaranty shall nevertheless
  196  constitute a guaranty if the holder of the underlying
  197  indebtedness or the holder’s her or his representative or
  198  trustee has the right to sue to enforce the guarantor’s
  199  obligations under the guaranty. Words of guaranty or equivalent
  200  words that which otherwise do not specify guaranty of payment
  201  create a presumption that payment, rather than collection, is
  202  guaranteed by the guarantor. Any guaranty in writing is
  203  enforceable notwithstanding any statute of frauds.
  204         (13) “Intermediary” means a natural person residing in this
  205  the state or a corporation, trust, partnership, limited
  206  liability company, association, or other legal entity registered
  207  with the Secretary of State to do business in this the state,
  208  which facilitates through its website the offer or sale of
  209  securities of an issuer with a principal place of business in
  210  this state under s. 517.0611.
  211         (14)(a) “Investment adviser” means a includes any person,
  212  other than an associated person of an investment adviser or a
  213  federal covered adviser, that who receives compensation,
  214  directly or indirectly, and engages for all or part of the
  215  person’s her or his time, directly or indirectly, or through
  216  publications or writings, in the business of advising others as
  217  to the value of securities or as to the advisability of
  218  investments in, purchasing of, or selling of securities, except
  219  a dealer whose performance of these services is solely
  220  incidental to the conduct of her or his business as a dealer and
  221  who receives no special compensation for such services.
  222         (b) The term “investment adviser” does not include the
  223  following:
  224         1. A dealer or an associated person of a dealer whose
  225  performance of services in paragraph (a) is solely incidental to
  226  the conduct of the dealer’s or associated person’s business as a
  227  dealer and who does not receive special compensation for those
  228  services.
  229         2.A Any licensed practicing attorney or certified public
  230  accountant whose performance of such services is solely
  231  incidental to the practice of the attorney’s or accountant’s her
  232  or his profession.;
  233         2.Any licensed certified public accountant whose
  234  performance of such services is solely incidental to the
  235  practice of her or his profession;
  236         3. A Any bank authorized to do business in this state.;
  237         4. A Any bank holding company as defined in the Bank
  238  Holding Company Act of 1956, as amended, authorized to do
  239  business in this state.;
  240         5. A Any trust company having trust powers, as defined in
  241  s. 658.12, which it is authorized to exercise in this the state,
  242  which trust company renders or performs investment advisory
  243  services in a fiduciary capacity incidental to the exercise of
  244  its trust powers.;
  245         6. A Any person that who renders investment advice
  246  exclusively to insurance or investment companies.;
  247         7. A Any person that who does not hold itself herself or
  248  himself out to the general public as an investment adviser and
  249  has no more than 15 clients within 12 consecutive months in this
  250  state.;
  251         8. A Any person whose transactions in this state are
  252  limited to those transactions described in s. 222(d) of the
  253  Investment Advisers Act of 1940, as amended. Those clients
  254  listed in subparagraph 6. may not be included when determining
  255  the number of clients of an investment adviser for purposes of
  256  s. 222(d) of the Investment Advisers Act of 1940, as amended.;
  257  or
  258         9. A federal covered adviser.
  259         (15) “Issuer” means a any person that who proposes to
  260  issue, has issued, or shall hereafter issue any security. A Any
  261  person that who acts as a promoter for and on behalf of a
  262  corporation, trust, or unincorporated association or
  263  partnership, limited liability company, association, or other
  264  legal entity of any kind to be formed shall be deemed an issuer.
  265         (16) “Offer to sell,” “offer for sale,” or “offer” means an
  266  any attempt or offer to dispose of, or solicitation of an offer
  267  to buy, a security or interest in a security, or an investment
  268  or interest in an investment, for value.
  269         (17)(8) “Office” means the Office of Financial Regulation
  270  of the commission.
  271         (18)(17) “Predecessor” means a person whose the major
  272  portion of whose assets has have been acquired directly or
  273  indirectly by an issuer.
  274         (19)(18) “Principal” means an executive officer of a
  275  corporation, partner of a partnership, sole proprietor of a sole
  276  proprietorship, trustee of a trust, or any other person with
  277  similar supervisory functions with respect to any organization,
  278  whether incorporated or unincorporated.
  279         (20)(19) “Promoter” includes the following:
  280         (a) A Any person that who, acting alone or in conjunction
  281  with one or more other persons, directly or indirectly takes the
  282  initiative in founding and organizing the business or enterprise
  283  of an issuer.
  284         (b) A Any person that who, in connection with the founding
  285  or organizing of the business or enterprise of an issuer,
  286  directly or indirectly receives in consideration of services or
  287  property, or both services and property, 10 percent or more of
  288  any class of securities of the issuer or 10 percent or more of
  289  the proceeds from the sale of any class of securities. However,
  290  a person that who receives such securities or proceeds either
  291  solely as underwriting commissions or solely in connection with
  292  property shall not be deemed a promoter if such person does not
  293  otherwise take part in founding and organizing the enterprise.
  294         (21)(20) “Qualified institutional buyer” means a any
  295  qualified institutional buyer, as defined in United States
  296  Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
  297  230.144A(a), under the Securities Act of 1933, as amended, or
  298  any foreign buyer that satisfies the minimum financial
  299  requirements set forth in such rule.
  300         (22)(21) “Sale” or “sell” means a any contract of sale or
  301  disposition of an any investment, security, or interest in a
  302  security, for value. With respect to a security or interest in a
  303  security, the term defined in this subsection does not include
  304  preliminary negotiations or agreements between an issuer or any
  305  person on whose behalf an offering is to be made and any
  306  underwriter or among underwriters who are or are to be in
  307  privity of contract with an issuer. Any security given or
  308  delivered with, or as a bonus on account of, any purchase of
  309  securities or any other thing shall be conclusively presumed to
  310  constitute a part of the subject of such purchase and to have
  311  been offered and sold for value. Every sale or offer of a
  312  warrant or right to purchase or subscribe to another security of
  313  the same or another issuer, as well as every sale or offer of a
  314  security which gives the holder a present or future right or
  315  privilege to convert into another security or another issuer, is
  316  considered to include an offer of the other security.
  317         (23)(22) “Security” includes any of the following:
  318         (a) A note.
  319         (b) A stock.
  320         (c) A treasury stock.
  321         (d) A bond.
  322         (e) A debenture.
  323         (f) An evidence of indebtedness.
  324         (g) A certificate of deposit.
  325         (h) A certificate of deposit for a security.
  326         (i) A certificate of interest or participation.
  327         (j) A whiskey warehouse receipt or other commodity
  328  warehouse receipt.
  329         (k) A certificate of interest in a profit-sharing agreement
  330  or the right to participate therein.
  331         (l) A certificate of interest in an oil, gas, petroleum,
  332  mineral, or mining title or lease or the right to participate
  333  therein.
  334         (m) A collateral trust certificate.
  335         (n) A reorganization certificate.
  336         (o) A preorganization subscription.
  337         (p) A Any transferable share.
  338         (q) An investment contract.
  339         (r) A beneficial interest in title to property, profits, or
  340  earnings.
  341         (s) An interest in or under a profit-sharing or
  342  participation agreement or scheme.
  343         (t) An Any option contract that which entitles the holder
  344  to purchase or sell a given amount of the underlying security at
  345  a fixed price within a specified period of time.
  346         (u) Any other instrument commonly known as a security,
  347  including an interim or temporary bond, debenture, note, or
  348  certificate.
  349         (v) A Any receipt for a security, or for subscription to a
  350  security, or a any right to subscribe to or purchase any
  351  security.
  352         (w) A viatical settlement investment.
  353         (24)(23) “Underwriter” means a person that who has
  354  purchased from an issuer or an affiliate of an issuer with a
  355  view to, or offers or sells for an issuer or an affiliate of an
  356  issuer in connection with, the distribution of any security, or
  357  participates or has a direct or indirect participation in any
  358  such undertaking, or participates or has a participation in the
  359  direct or indirect underwriting of any such undertaking; except
  360  that a person is shall be presumed not to be an underwriter with
  361  respect to any security which it she or he has owned
  362  beneficially for at least 1 year; and, further, a dealer is
  363  shall not be considered an underwriter with respect to any
  364  securities which do not represent part of an unsold allotment to
  365  or subscription by the dealer as a participant in the
  366  distribution of such securities by the issuer or an affiliate of
  367  the issuer; and, further, in the case of securities acquired on
  368  the conversion of another security without payment of additional
  369  consideration, the length of time such securities have been
  370  beneficially owned by a person includes the period during which
  371  the convertible security was beneficially owned and the period
  372  during which the security acquired on conversion has been
  373  beneficially owned.
  374         (25)(24) “Viatical settlement investment” means an
  375  agreement for the purchase, sale, assignment, transfer, devise,
  376  or bequest of all or any portion of a legal or equitable
  377  interest in a viaticated policy as defined in chapter 626.
  378         Section 2. Paragraph (d) of subsection (3) of section
  379  517.072, Florida Statutes, is amended, and subsection (4) is
  380  added to that section, to read:
  381         517.072 Viatical settlement investments.—
  382         (3) The registration provisions of ss. 517.07 and 517.12 do
  383  not apply to any of the following transactions in viatical
  384  settlement investments; however, such transactions in viatical
  385  settlement investments are subject to the provisions of ss.
  386  517.301, 517.311, and 517.312:
  387         (d) The transfer or assignment of a viaticated policy to a
  388  bank, trust company, savings institution, insurance company,
  389  dealer, investment company as defined in the Investment Company
  390  Act of 1940, as amended, pension or profit-sharing trust, or
  391  qualified institutional buyer as defined in United States
  392  Securities and Exchange Commission Rule 144A, 17 C.F.R. s.
  393  230.144A(a), or to an accredited investor as defined by Rule 501
  394  of Regulation D of the Securities Act Rules, provided such
  395  transfer or assignment is not for the direct or indirect
  396  promotion of any scheme or enterprise with the intent of
  397  violating or evading any provision of this chapter.
  398         (4)The commission may establish by rule requirements and
  399  standards for disclosures to purchasers of viatical settlement
  400  investments and recordkeeping requirements for sellers of
  401  viatical settlement investments.
  402         Section 3. Paragraphs (a), (g), and (n) of subsection (3)
  403  and subsections (6) and (8) of section 517.081, Florida
  404  Statutes, are amended to read:
  405         517.081 Registration procedure.—
  406         (3) The office may require the applicant to submit to the
  407  office the following information concerning the issuer and such
  408  other relevant information as the office may in its judgment
  409  deem necessary to enable it to ascertain whether such securities
  410  shall be registered pursuant to the provisions of this section:
  411         (a) The names and addresses of:
  412         1.All the directors, trustees, and officers, if the issuer
  413  is be a corporation, association, or trust.
  414         2.All the managers or managing members, if the issuer is a
  415  limited liability company.
  416         3.; of All the partners, if the issuer is be a
  417  partnership.
  418         4.; or of The issuer, if the issuer is a sole
  419  proprietorship or natural person be an individual.
  420         (g)1. A specimen copy of the securities certificate, if
  421  applicable, security and a copy of any circular, prospectus,
  422  advertisement, or other description of such securities.
  423         2. The commission shall adopt a form for a simplified
  424  offering circular to be used solely by corporations to register,
  425  under this section, securities of the corporation that are sold
  426  in offerings in which the aggregate offering price in any
  427  consecutive 12-month period does not exceed the amount provided
  428  in s. 3(b) of the Securities Act of 1933, as amended. The
  429  following issuers shall not be eligible to submit a simplified
  430  offering circular adopted pursuant to this subparagraph:
  431         a. An issuer seeking to register securities for resale by
  432  persons other than the issuer.
  433         b. An issuer that who is subject to any of the
  434  disqualifications described in 17 C.F.R. s. 230.262, adopted
  435  pursuant to the Securities Act of 1933, as amended, or that who
  436  has been or is engaged or is about to engage in an activity that
  437  would be grounds for denial, revocation, or suspension under s.
  438  517.111. For purposes of this subparagraph, an issuer includes
  439  an issuer’s director, officer, general partner, manager or
  440  managing member, trustee, or equity owner shareholder who owns
  441  at least 10 percent of the ownership interests shares of the
  442  issuer, promoter, or selling agent of the securities to be
  443  offered or any officer, director, or partner, or manager or
  444  managing member of such selling agent.
  445         c. An issuer that who is a development-stage company that
  446  either has no specific business plan or purpose or has indicated
  447  that its business plan is to merge with an unidentified company
  448  or companies.
  449         d. An issuer of offerings in which the specific business or
  450  properties cannot be described.
  451         e. Any issuer the office determines is ineligible because
  452  if the form does would not provide full and fair disclosure of
  453  material information for the type of offering to be registered
  454  by the issuer.
  455         f. Any issuer that corporation which has failed to provide
  456  the office the reports required for a previous offering
  457  registered pursuant to this subparagraph.
  458  
  459  As a condition precedent to qualifying for use of the simplified
  460  offering circular, an issuer a corporation shall agree to
  461  provide the office with an annual financial report containing a
  462  balance sheet as of the end of the issuer’s fiscal year and a
  463  statement of income for such year, prepared in accordance with
  464  United States generally accepted accounting principles and
  465  accompanied by an independent accountant’s report. If the issuer
  466  has more than 100 security holders at the end of a fiscal year,
  467  the financial statements must be audited. Annual financial
  468  reports must be filed with the office within 90 days after the
  469  close of the issuer’s fiscal year for each of the first 5 years
  470  following the effective date of the registration.
  471         (n) If the issuer is a corporation, there shall be filed
  472  with the application a copy of its articles of incorporation
  473  with all amendments and of its existing bylaws, if not already
  474  on file in the office. If the issuer is a limited liability
  475  company, there shall be filed with the application a copy of the
  476  articles of organization with all the amendments and a copy of
  477  the company’s operating agreement as may be amended, if not
  478  already on file with the office. If the issuer is a trustee,
  479  there shall be filed with the application a copy of all
  480  instruments by which the trust is created or declared and in
  481  which it is accepted and acknowledged. If the issuer is a
  482  partnership, unincorporated association, joint-stock company, or
  483  any other form of organization whatsoever, there shall be filed
  484  with the application a copy of its articles of partnership or
  485  association and all other papers pertaining to its organization,
  486  if not already on file in the office.
  487         (6) An issuer filing an application under this section
  488  shall, at the time of filing, pay the office a nonreturnable fee
  489  of $1,000 per application for each offering that exceeds the
  490  amount provided in s. 3(b) of the Securities Act of 1933, as
  491  amended, or $200 per application for each offering that does not
  492  exceed the amount provided in s. 3(b) of the Securities Act of
  493  1933, as amended.
  494         (8) The office shall deem an application to register
  495  securities filed with the office abandoned if the issuer or any
  496  person acting on behalf of the issuer has failed to timely
  497  complete an application specified by commission rule The
  498  commission may by rule establish requirements and standards for:
  499         (a)Disclosures to purchasers of viatical settlement
  500  investments.
  501         (b)Recordkeeping requirements for sellers of viatical
  502  settlement investments.
  503         Section 4. Section 517.082, Florida Statutes, is amended to
  504  read:
  505         517.082 Notification Registration by notification; federal
  506  registration statements.—
  507         (1) Except as provided in subsection (3), Securities
  508  offered or sold pursuant to a registration statement filed under
  509  the Securities Act of 1933, as amended, are shall be entitled to
  510  registration by notification in the manner provided in
  511  subsection (2), provided that before prior to the offer or sale
  512  the registration statement has become effective.
  513         (2) An application for registration by notification shall
  514  be filed with the office, shall contain the following
  515  information, and shall be accompanied by all of the following:
  516         (a) An application to sell executed by the issuer, any
  517  person on whose behalf the offering is made, a dealer registered
  518  under this chapter, or any duly authorized agent of any such
  519  person, setting forth the name and address of the applicant, the
  520  name and address of the issuer, and the title of the securities
  521  to be offered and sold.;
  522         (b) Copies of such documents filed with the Securities and
  523  Exchange Commission as the Financial Services Commission may by
  524  rule require.;
  525         (c) An irrevocable written consent to service as required
  526  by s. 517.101.; and
  527         (d) A nonreturnable fee of $1,000 per application.
  528  
  529  A registration under this section becomes effective when the
  530  federal registration statement becomes effective or as of the
  531  date the application is filed with the office, whichever is
  532  later, provided that, in addition to the items listed in
  533  paragraphs (a)-(d), the office has received written notification
  534  of effective registration under the Securities Act of 1933, as
  535  amended, or the Investment Company Act of 1940, as amended,
  536  within 10 business days after from the date federal registration
  537  is granted. Failure to provide all the information required by
  538  this subsection to the office within 60 days after of the date
  539  the registration statement becomes effective with the Securities
  540  and Exchange Commission shall be a violation of this chapter.
  541         (3) Except for units of limited partnership interests or
  542  such other securities as the commission describes by rule as
  543  exempt from this subsection due to high investment quality, the
  544  provisions of this section may not be used to register
  545  securities if the offering price at the time of effectiveness
  546  with the Securities and Exchange Commission is $5 or less per
  547  share, unless such securities are listed or designated, or
  548  approved for listing or designation upon notice of issuance, on
  549  a stock exchange registered pursuant to the Securities Exchange
  550  Act of 1934, as amended, or on the National Association of
  551  Securities Dealers Automated Quotation (NASDAQ) System, or
  552  unless such securities are of the same issuer and of senior or
  553  substantially equal rank to securities so listed or designated.
  554         (4) In lieu of filing with the office the application,
  555  fees, and documents for registration required by subsection (2),
  556  the commission may establish, by rule, procedures for depositing
  557  fees and filing documents by electronic means, provided such
  558  procedures provide the office with the information and data
  559  required by this section.
  560         (5)If the Securities and Exchange Commission has not
  561  declared effective the applicant’s federal registration
  562  statement within 180 days after the applicant’s filing with the
  563  office of an application for registration by notification, the
  564  office must deem the application abandoned.
  565         Section 5. Section 517.111, Florida Statutes, is amended to
  566  read:
  567         517.111 Revocation or denial of registration of
  568  securities.—
  569         (1) The office may revoke or suspend the registration of
  570  any security, or may deny any application to register
  571  securities, if, upon examination or investigation into the
  572  affairs of the issuer of such security, the office determines it
  573  shall appear that:
  574         (a) The issuer cannot pay its debts as they become due in
  575  the usual course of business is insolvent;
  576         (b) The issuer or any officer, director, manager or
  577  managing member, or control person of the issuer has violated
  578  any provision of this chapter or any rule made hereunder or any
  579  order of the office of which such issuer has notice;
  580         (c) The issuer or any officer, director, manager or
  581  managing member, or control person of the issuer has been or is
  582  engaged or is about to engage in fraudulent transactions;
  583         (d) The issuer or any officer, director, manager or
  584  managing member, or control person of the issuer has been found
  585  guilty of a fraudulent act in connection with any sale of
  586  securities, has engaged, is engaged, or is about to engage, in
  587  making a fictitious sale or purchase of any security, or in any
  588  practice or sale of any security which is fraudulent or a
  589  violation of any law;
  590         (e) The issuer or any officer, director, manager or
  591  managing member, or control person of the issuer has had a final
  592  judgment entered against such issuer or person in a civil action
  593  on the grounds of fraud, embezzlement, misrepresentation, or
  594  deceit;
  595         (f) The issuer or any officer, director, manager or
  596  managing member, or control person of the issuer has engaged in
  597  any action that would be grounds for revocation, denial, or
  598  suspension under s. 517.161(1) demonstrated any evidence of
  599  unworthiness;
  600         (g) The issuer or any officer, director, manager or
  601  managing member, or control person of the issuer is in any other
  602  way dishonest or has made any fraudulent representations or
  603  failed to disclose any material information in any prospectus or
  604  in any circular or other literature that has been distributed
  605  concerning the issuer or its securities;
  606         (h) The security registered or sought to be registered is
  607  the subject of an injunction entered by a court of competent
  608  jurisdiction or is the subject of an administrative stop-order
  609  or similar order prohibiting the offer or sale of the security;
  610  or
  611         (i) For any security for which registration has been
  612  applied pursuant to s. 517.081, the terms of the offer or sale
  613  of such securities would not be fair, just, or equitable; or
  614         (j)The issuer or any person acting on behalf of the issuer
  615  has failed to timely complete any application for registration
  616  filed with the office pursuant to the provisions of s. 517.081
  617  or s. 517.082 or any rule adopted under such sections.
  618         (2) In making such examination or investigation, the office
  619  shall have access to and may compel the production of all the
  620  books and papers of such issuer and may administer oaths to and
  621  examine the officers of such issuer or any other person
  622  connected therewith as to its business and affairs and may also
  623  require a balance sheet exhibiting the assets and liabilities of
  624  any such issuer or its income statement, or both, to be
  625  certified to by a public accountant either of this state or of
  626  any other state where the issuer’s business is located. Whenever
  627  the office deems it necessary, it may also require such balance
  628  sheet or income statement, or both, to be made more specific in
  629  such particulars as the office may require.
  630         (3)(2) If any issuer refuses shall refuse to permit an
  631  examination or investigation to be made by the office, it shall
  632  be proper ground for revocation of registration.
  633         (4)(3) If the office deems it necessary, it may enter an
  634  order suspending the right to sell securities pending any
  635  examination or investigation, provided that the order shall
  636  state the office’s grounds for taking such action.
  637         (5)(4) Notice of the entry of such order shall be given
  638  personally or by mail, personally, by telephone confirmed in
  639  writing, or by telegraph to the issuer. Before such order is
  640  made final, the issuer applying for registration shall, on
  641  application, be entitled to a hearing.
  642         (6)(5) The office may deny any request to terminate any
  643  registration or to withdraw any application for registration if
  644  the office believes that an act which would be grounds for
  645  denial, suspension, or revocation under this chapter has been
  646  committed.
  647         Section 6. Subsections (3) through (22) of section 517.12,
  648  Florida Statutes, are renumbered as subsections (2) through
  649  (21), respectively, and subsection (1), present subsections (2)
  650  and (3), paragraph (b) of present subsection (6), present
  651  subsections (7) and (11), paragraph (b) of present subsection
  652  (15), and present subsections (20) and (21) of that section are
  653  amended, to read:
  654         517.12 Registration of dealers, associated persons,
  655  intermediaries, and investment advisers.—
  656         (1) No dealer or, associated person, or issuer of
  657  securities shall sell or offer for sale any securities in or
  658  from offices in this state, or sell securities to persons in
  659  this state from offices outside this state, by mail or
  660  otherwise, unless the person is has been registered with the
  661  office as a dealer or as an associated person of a dealer
  662  pursuant to the provisions of this section. The office shall not
  663  register any person as an associated person of a dealer unless
  664  the dealer with which the applicant seeks registration is
  665  lawfully registered with the office pursuant to this chapter.
  666         (2)The registration requirements of this section do not
  667  apply to the issuers of securities exempted by s. 517.051(1)-(8)
  668  and (10).
  669         (2)(3)Except as otherwise provided in s. 517.061(11)(a)4.,
  670  (13), (16), (17), or (19), The registration requirements of this
  671  section do not apply in a transaction exempted by s. 517.061(1)
  672  (10) and (12), s. 517.061(1)-(12), (14), and (15).
  673         (5)(6) A dealer, associated person, or investment adviser,
  674  in order to obtain registration, must file with the office a
  675  written application, on a form which the commission may by rule
  676  prescribe. The commission may establish, by rule, procedures for
  677  depositing fees and filing documents by electronic means
  678  provided such procedures provide the office with the information
  679  and data required by this section. Each dealer or investment
  680  adviser must also file an irrevocable written consent to service
  681  of civil process similar to that provided for in s. 517.101. The
  682  application shall contain such information as the commission or
  683  office may require concerning such matters as:
  684         (b) The applicant’s form and place of organization; and, if
  685  the applicant is:
  686         1. A corporation, a copy of its articles of incorporation
  687  and amendments to the articles of incorporation;
  688         2.A limited liability company, a copy of its articles of
  689  organization with amendments to its articles; or
  690         3., if A partnership, a copy of the partnership agreement.
  691         (6)(7) The application must also contain such information
  692  as the commission or office may require about the applicant; any
  693  member, principal, or director of the applicant or any person
  694  having a similar status or performing similar functions; any
  695  person directly or indirectly controlling the applicant; or any
  696  employee of a dealer or of an investment adviser rendering
  697  investment advisory services. Each applicant and any direct
  698  owners, principals, or indirect owners that are required to be
  699  reported on Form BD or Form ADV pursuant to subsection (14) (15)
  700  shall submit fingerprints for live-scan processing in accordance
  701  with rules adopted by the commission. The fingerprints may be
  702  submitted through a third-party vendor authorized by the
  703  Department of Law Enforcement to provide live-scan
  704  fingerprinting. The costs of fingerprint processing shall be
  705  borne by the person subject to the background check. The
  706  Department of Law Enforcement shall conduct a state criminal
  707  history background check, and a federal criminal history
  708  background check must be conducted through the Federal Bureau of
  709  Investigation. The office shall review the results of the state
  710  and federal criminal history background checks and determine
  711  whether the applicant meets licensure requirements. The
  712  commission may waive, by rule, the requirement that applicants,
  713  including any direct owners, principals, or indirect owners that
  714  are required to be reported on Form BD or Form ADV pursuant to
  715  subsection (14) (15), submit fingerprints or the requirement
  716  that such fingerprints be processed by the Department of Law
  717  Enforcement or the Federal Bureau of Investigation. The
  718  commission or office may require information about any such
  719  applicant or person concerning such matters as:
  720         (a) The applicant’s or person’s His or her full name, and
  721  any other names by which the applicant or person he or she may
  722  have been known, and the applicant’s or person’s his or her age,
  723  social security number, photograph, qualifications, and
  724  educational and business history.
  725         (b) Any injunction or administrative order by a state or
  726  federal agency, national securities exchange, or national
  727  securities association involving a security or any aspect of a
  728  dealer’s or investment adviser’s regulated the securities
  729  business and any injunction or administrative order by a state
  730  or federal agency regulating banking, insurance, finance, or
  731  small loan companies, real estate, mortgage brokers, or other
  732  related or similar industries, which injunctions or
  733  administrative orders relate to such person.
  734         (c) The applicant’s or person’s His or her conviction of,
  735  or plea of nolo contendere to, a criminal offense or the
  736  applicant’s or person’s his or her commission of any acts which
  737  would be grounds for refusal of an application under s. 517.161.
  738         (d) The names and addresses of other persons of whom the
  739  office may inquire as to the applicant’s or person’s his or her
  740  character, reputation, and financial responsibility.
  741         (10)(a)(11)(a) If the office finds that the applicant is of
  742  good repute and character and has complied with the applicable
  743  registration provisions of this chapter and the rules made
  744  pursuant hereto, it shall register the applicant unless the
  745  applicant is otherwise disqualified for registration pursuant to
  746  law. The registration of each dealer, investment adviser, and
  747  associated person expires on December 31 of the year the
  748  registration became effective unless the registrant has renewed
  749  its his or her registration on or before that date. Registration
  750  may be renewed by furnishing such information as the commission
  751  may require, together with payment of the fee required in
  752  paragraph (9)(a) (10)(a) for dealers, investment advisers, or
  753  associated persons and the payment of any amount lawfully due
  754  and owing to the office pursuant to any order of the office or
  755  pursuant to any agreement with the office. Any dealer,
  756  investment adviser, or associated person who has not renewed a
  757  registration by the time the current registration expires may
  758  request reinstatement of such registration by filing with the
  759  office, on or before January 31 of the year following the year
  760  of expiration, such information as may be required by the
  761  commission, together with payment of the fee required in
  762  paragraph (9)(a) (10)(a) for dealers, investment advisers, or
  763  associated persons and a late fee equal to the amount of such
  764  fee. Any reinstatement of registration granted by the office
  765  during the month of January shall be deemed effective
  766  retroactive to January 1 of that year.
  767         (b) The office shall waive the $50 assessment fee for an
  768  associated person required by paragraph (9)(a) (10)(a) for a
  769  registrant renewing his or her registration who:
  770         1. Is an active duty member of the United States Armed
  771  Forces or the spouse of such member;
  772         2. Is or was a member of the United States Armed Forces and
  773  served on active duty within the 2 years preceding the
  774  expiration date of the registration pursuant to paragraph (a).
  775  To qualify for the fee waiver, a registrant who is a former
  776  member of the United States Armed Forces who served on active
  777  duty within the 2 years preceding the expiration date of the
  778  registration must have received an honorable discharge upon
  779  separation or discharge from the United States Armed Forces; or
  780         3. Is the surviving spouse of a member of the United States
  781  Armed Forces if the member was serving on active duty at the
  782  time of death and died within the 2 years preceding the
  783  surviving spouse’s registration expiration date pursuant to
  784  paragraph (a).
  785  
  786  A registrant seeking such fee waiver must submit proof, in a
  787  form prescribed by commission rule, that the registrant meets
  788  one of the qualifications in this paragraph.
  789         (14)(15)
  790         (b) In lieu of filing with the office the applications
  791  specified in subsection (5) (6), the fees required by subsection
  792  (9) (10), the renewals required by subsection (10) (11), and the
  793  termination notices required by subsection (11) (12), the
  794  commission may by rule establish procedures for the deposit of
  795  such fees and documents with the Central Registration Depository
  796  or the Investment Adviser Registration Depository of the
  797  Financial Industry Regulatory Authority, as developed under
  798  contract with the North American Securities Administrators
  799  Association, Inc.
  800         (19)(20) An intermediary may not engage in business in this
  801  state unless the intermediary is registered as a dealer or as an
  802  intermediary with the office pursuant to this section to
  803  facilitate the offer or sale of securities in accordance with s.
  804  517.0611. An intermediary, in order to obtain registration, must
  805  file with the office a written application on a form prescribed
  806  by commission rule and pay a registration fee of $200. The fees
  807  under this subsection shall be deposited into the Regulatory
  808  Trust Fund of the office. The commission may establish by rule
  809  procedures for depositing fees and filing documents by
  810  electronic means if such procedures provide the office with the
  811  information and data required by this section. Each intermediary
  812  must also file an irrevocable written consent to service of
  813  civil process, as provided in s. 517.101.
  814         (a) The application must contain such information as the
  815  commission or office may require concerning:
  816         1. The name of the applicant and address of its principal
  817  office and each office in this state.
  818         2. The applicant’s form and place of organization; and, if
  819  the applicant is:
  820         a. A corporation, a copy of its articles of incorporation
  821  and amendments to the articles of incorporation;
  822         b.A limited liability company, a copy of its articles of
  823  organization and amendments to the articles and a copy of the
  824  company’s operating agreement as may be amended; or
  825         c., if A partnership, a copy of the partnership agreement.
  826         3. The website address where securities of the issuer will
  827  be offered.
  828         4. Contact information.
  829         (b) The application must also contain such information as
  830  the commission may require by rule about the applicant; any
  831  member, principal, or director of the applicant or any person
  832  having a similar status or performing similar functions; or any
  833  persons directly or indirectly controlling the applicant. Each
  834  applicant and any direct owners, principals, or indirect owners
  835  that are required to be reported on a form adopted by commission
  836  rule shall submit fingerprints for live-scan processing in
  837  accordance with rules adopted by the commission. The
  838  fingerprints may be submitted through a third-party vendor
  839  authorized by the Department of Law Enforcement to provide live
  840  scan fingerprinting. The costs of fingerprint processing shall
  841  be borne by the person subject to the background check. The
  842  Department of Law Enforcement shall conduct a state criminal
  843  history background check, and a federal criminal history
  844  background check must be conducted through the Federal Bureau of
  845  Investigation. The office shall review the results of the state
  846  and federal criminal history background checks and determine
  847  whether the applicant meets registration requirements. The
  848  commission may waive, by rule, the requirement that applicants,
  849  including any direct owners, principals, or indirect owners,
  850  which are required to be reported on a form adopted by
  851  commission rule, submit fingerprints or the requirement that
  852  such fingerprints be processed by the Department of Law
  853  Enforcement or the Federal Bureau of Investigation. The
  854  commission, by rule, or the office may require information about
  855  any applicant or person, including:
  856         1. The applicant’s or person’s His or her full name and any
  857  other names by which the applicant or person he or she may have
  858  been known and the applicant’s or person’s his or her age,
  859  social security number, photograph, qualifications, and
  860  educational and business history.
  861         2. Any injunction or administrative order by a state or
  862  federal agency, national securities exchange, or national
  863  securities association involving a security or any aspect of an
  864  intermediary’s regulated the securities business and any
  865  injunction or administrative order by a state or federal agency
  866  regulating banking, insurance, finance, or small loan companies,
  867  real estate, mortgage brokers, or other related or similar
  868  industries, which relate to such person.
  869         3. The applicant’s or person’s His or her conviction of, or
  870  plea of nolo contendere to, a criminal offense or the
  871  applicant’s or person’s his or her commission of any acts that
  872  would be grounds for refusal of an application under s. 517.161.
  873         (c) The application must be amended within 30 days if any
  874  information contained in the form becomes inaccurate for any
  875  reason.
  876         (d) An intermediary or persons affiliated with the
  877  intermediary are not subject to any disqualification described
  878  in s. 517.1611 or United States Securities and Exchange
  879  Commission Rule 506(d), 17 C.F.R. 230.506(d), adopted pursuant
  880  to the Securities Act of 1933, as amended. Each director,
  881  officer, manager or managing member, control person of the
  882  issuer, any person occupying a similar status or performing a
  883  similar function, and each person holding more than 20 percent
  884  of the ownership interests shares of the intermediary is subject
  885  to this requirement.
  886         (e) If the office finds that the applicant is of good
  887  repute and character and has complied with the applicable
  888  registration provisions of this chapter and the rules adopted
  889  thereunder, it shall register the applicant. The registration of
  890  each intermediary expires on December 31 of the year the
  891  registration became effective unless the registrant renews his
  892  or her registration on or before that date. Registration may be
  893  renewed by furnishing such information as the commission may
  894  require by rule, together with payment of a $200 fee and the
  895  payment of any amount due to the office pursuant to any order of
  896  the office or pursuant to any agreement with the office. An
  897  intermediary who has not renewed a registration by the time that
  898  the current registration expires may request reinstatement of
  899  such registration by filing with the office, on or before
  900  January 31 of the year following the year of expiration, such
  901  information as required by the commission, together with payment
  902  of the $200 fee and a late fee of $200. Any reinstatement of
  903  registration granted by the office during the month of January
  904  is deemed effective retroactive to January 1 of that year.
  905         (20)(21) The registration requirements of this section do
  906  not apply to any general lines insurance agent or life insurance
  907  agent licensed under chapter 626, for the sale of a security as
  908  defined in s. 517.021(23)(g) s. 517.021(22)(g), if the
  909  individual is directly authorized by the issuer to offer or sell
  910  the security on behalf of the issuer and the issuer is a
  911  federally chartered savings bank subject to regulation by the
  912  Federal Deposit Insurance Corporation. Actions under this
  913  subsection shall constitute activity under the insurance agent’s
  914  license for purposes of ss. 626.611 and 626.621.
  915         Section 7. Section 517.1214, Florida Statutes, is created
  916  to read:
  917         517.1214Continuing education requirements for associated
  918  persons of investment advisers and federal covered advisers.—
  919         (1)As used in this section, the term:
  920         (a)“Approved continuing education content” means the
  921  materials, written, oral, or otherwise, which have been approved
  922  by NASAA or its designee and which make up the educational
  923  program provided to an associated person under this section.
  924         (b)“Credit” means a unit designated by NASAA or its
  925  designee as at least 50 minutes of educational instruction.
  926         (c)“Home state” means the state in which an associated
  927  person of an investment adviser or a federal covered adviser has
  928  his or her principal office and place of business.
  929         (d)“NASAA” means the North American Securities
  930  Administrators Association, Inc.
  931         (e)“Reporting period” means one 12-month period beginning
  932  January 1 and ending December 31. An associated person’s initial
  933  reporting period with this state commences the first day of the
  934  first full reporting period after the individual is registered
  935  or required to be registered with this state.
  936         (2)By December 31, 2024, and each December 31 thereafter,
  937  each associated person of an investment adviser or a federal
  938  covered adviser shall complete the following continuing
  939  education content requirements offered by a person that NASAA or
  940  its designee has authorized to provide the continuing education
  941  content required by this section:
  942         (a)Six credits of approved continuing education content
  943  that addresses an associated person’s ethical and regulatory
  944  obligations, with at least 3 hours covering the topic of ethics;
  945  and
  946         (b)Six credits of approved continuing education content
  947  that addresses an associated person’s skills and knowledge
  948  regarding financial products, investment features, and practices
  949  in the investment advisory industry.
  950         (3)An associated person of an investment adviser or
  951  federal covered adviser who is also registered as an associated
  952  person of a Financial Industry Regulatory Authority (FINRA)
  953  member dealer and who complies with FINRA’s continuing education
  954  requirements is considered to be in compliance with this
  955  section’s products and practice requirement for each applicable
  956  reporting period, provided that the FINRA continuing education
  957  content is approved continuing education content.
  958         (4)Credits of continuing education completed by an
  959  associated person who was awarded and currently holds a
  960  credential that qualifies for examination waiver by passing any
  961  tests as prescribed in s. 15(b)(7) of the Securities Exchange
  962  Act of 1934, as amended, comply with paragraphs (2)(a) and (b),
  963  provided all of the following conditions are met:
  964         (a)The associated person completes the credits of
  965  continuing education as a condition of maintaining the
  966  credential for the relevant reporting period.
  967         (b)The credits of continuing education completed during
  968  the relevant reporting period by the associated person are
  969  mandatory to maintain the credential.
  970         (c)The continuing education content provided by the
  971  credentialing organization during the relevant reporting period
  972  is approved continuing education content.
  973         (5)Each associated person is responsible for ensuring that
  974  the authorized provider reports the associated person’s
  975  completion of the applicable continuing education requirements.
  976         (6)An associated person who completes credits of
  977  continuing education in excess of the credits required for the
  978  reporting period may not carry forward excess credits to a
  979  subsequent reporting period.
  980         (7)An associated person who fails to comply with this
  981  section by the end of a reporting period shall renew as “CE
  982  inactive” at the close of the calendar year in this state until
  983  the associated person completes and reports all required
  984  continuing education credits for all reporting periods as
  985  required by this section. An associated person who is “CE
  986  inactive” at the close of the next calendar year is not eligible
  987  for associated person registration or renewal of associated
  988  person registration.
  989         (8)An associated person registered or required to be
  990  registered in this state who is registered as an associated
  991  person of an investment adviser or federal covered adviser in
  992  the individual’s home state is considered to be in compliance
  993  with this section if:
  994         (a)The associated person’s home state has a continuing
  995  education requirement of at least 12 hours annually; and
  996         (b)The associated person is in compliance with the home
  997  state’s associated person of an investment adviser or federal
  998  covered adviser continuing education requirements.
  999         (9)An associated person who was previously registered
 1000  under s. 517.12 and became unregistered must complete continuing
 1001  education for all reporting periods that occurred between the
 1002  time that the associated person became unregistered and when the
 1003  person became registered again under s. 517.12, unless the
 1004  associated person takes and passes the required examinations or
 1005  the examination requirements are waived in connection with the
 1006  subsequent application for registration.
 1007         Section 8. Section 517.1217, Florida Statutes, is amended
 1008  to read:
 1009         517.1217 Rules of conduct and prohibited business practices
 1010  for dealers and their associated persons and for
 1011  intermediaries.—The commission by rule may establish rules of
 1012  conduct and prohibited business practices for dealers and their
 1013  associated persons and for intermediaries. In adopting the
 1014  rules, the commission shall consider general industry standards
 1015  as expressed in the rules and regulations of the various federal
 1016  and self-regulatory agencies and regulatory associations,
 1017  including, but not limited to, the United States Securities and
 1018  Exchange Commission, the Financial Industry Regulatory
 1019  Authority, and the North American Securities Administrators
 1020  Association, Inc.
 1021         Section 9. Subsections (1), (4), and (5) of section
 1022  517.161, Florida Statutes, are amended to read:
 1023         517.161 Revocation, denial, or suspension of registration
 1024  of dealer, investment adviser, intermediary, or associated
 1025  person.—
 1026         (1) Registration under s. 517.12 may be denied or any
 1027  registration granted may be revoked, restricted, or suspended by
 1028  the office if the office determines that such applicant or
 1029  registrant; any member, principal, or director of the applicant
 1030  or registrant or any person having a similar status or
 1031  performing similar functions; or any person directly or
 1032  indirectly controlling the applicant or registrant:
 1033         (a) Has violated any provision of this chapter or any rule
 1034  or order made under this chapter;
 1035         (b) Has made a material false statement in the application
 1036  for registration;
 1037         (c) Has been guilty of a fraudulent act in connection with
 1038  rendering investment advice or in connection with any sale of
 1039  securities, has been or is engaged or is about to engage in
 1040  making fictitious or pretended sales or purchases of any such
 1041  securities or in any practice involving the rendering of
 1042  investment advice or the sale of securities which is fraudulent
 1043  or in violation of the law;
 1044         (d) Has made a misrepresentation or false statement to, or
 1045  concealed any essential or material fact from, any person in the
 1046  rendering of investment advice or the sale of a security to such
 1047  person;
 1048         (e) Has failed to account to persons interested for all
 1049  money and property received;
 1050         (f) Has not delivered, after a reasonable time, to persons
 1051  entitled thereto securities held or agreed to be delivered by
 1052  the dealer, broker, or investment adviser, as and when paid for,
 1053  and due to be delivered;
 1054         (g) Is rendering investment advice or selling or offering
 1055  for sale securities through any associated person not registered
 1056  in compliance with the provisions of this chapter;
 1057         (h) Has demonstrated unworthiness to transact the business
 1058  of dealer, investment adviser, intermediary, or associated
 1059  person;
 1060         (i) Has exercised management or policy control over or
 1061  owned 10 percent or more of the securities of any dealer,
 1062  intermediary, or investment adviser that has been declared
 1063  bankrupt, or had a trustee appointed under the Securities
 1064  Investor Protection Act; or is, in the case of a dealer,
 1065  intermediary, or investment adviser, unable to pay its debts as
 1066  they become due in the usual course of business insolvent;
 1067         (i)(j) Has been convicted of, or has entered a plea of
 1068  guilty or nolo contendere to, regardless of whether adjudication
 1069  was withheld, a crime against the laws of this state or any
 1070  other state or of the United States or of any other country or
 1071  government which relates to registration as a dealer, investment
 1072  adviser, issuer of securities, intermediary, or associated
 1073  person; which relates to the application for such registration;
 1074  or which involves moral turpitude or fraudulent or dishonest
 1075  dealing;
 1076         (j)(k) Has had a final judgment entered against her or him
 1077  in a civil action upon grounds of fraud, embezzlement,
 1078  misrepresentation, or deceit;
 1079         (l)Is of bad business repute;
 1080         (k)(m) Has been the subject of any decision, finding,
 1081  injunction, suspension, prohibition, revocation, denial,
 1082  judgment, or administrative order by any court of competent
 1083  jurisdiction, administrative law judge, or by any state or
 1084  federal agency, national securities, commodities, or option
 1085  exchange, or national securities, commodities, or option
 1086  association, involving a violation of any federal or state
 1087  securities or commodities law or any rule or regulation
 1088  promulgated thereunder, or any rule or regulation of any
 1089  national securities, commodities, or options exchange or
 1090  national securities, commodities, or options association, or has
 1091  been the subject of any injunction or adverse administrative
 1092  order by a state or federal agency regulating banking,
 1093  insurance, finance or small loan companies, real estate,
 1094  mortgage brokers or lenders, money transmitters, or other
 1095  related or similar industries. For purposes of this subsection,
 1096  the office may not deny registration to any applicant who has
 1097  been continuously registered with the office for 5 years after
 1098  the date of entry of such decision, finding, injunction,
 1099  suspension, prohibition, revocation, denial, judgment, or
 1100  administrative order provided such decision, finding,
 1101  injunction, suspension, prohibition, revocation, denial,
 1102  judgment, or administrative order has been timely reported to
 1103  the office pursuant to the commission’s rules; or
 1104         (l)(n) Made payment to the office for a registration with a
 1105  check or electronic transmission of funds that is dishonored by
 1106  the applicant’s or registrant’s financial institution;
 1107         (m)Failed to pay and fully satisfy any final judgment or
 1108  arbitration award resulting from an investment-related, client-
 1109  or customer-initiated arbitration or court proceeding, unless
 1110  alternative payment arrangements are agreed to in writing
 1111  between the client or customer and the investment adviser,
 1112  dealer, or associated person and the investment adviser, dealer,
 1113  or associated person complies with the terms of the alternative
 1114  payment arrangement;
 1115         (n)Attempted to avoid payment of any final judgment or
 1116  arbitration award resulting from an investment-related, client-
 1117  or customer-initiated arbitration or court proceeding, unless
 1118  alternative payment arrangements are agreed to in writing
 1119  between the client or customer and the investment adviser,
 1120  dealer, or associated person and the investment adviser, dealer,
 1121  or associated person complies with the terms of the alternative
 1122  payment arrangements; or
 1123         (o)Failed to pay and fully satisfy any fine, civil
 1124  penalty, order of restitution, order of disgorgement, or similar
 1125  monetary payment obligation imposed upon the investment adviser,
 1126  dealer, or associated person by the Securities and Exchange
 1127  Commission, the securities regulator or other financial services
 1128  regulator of any state or province, or any securities industry
 1129  self-regulatory organization.
 1130         (4) It shall be sufficient cause for denial of an
 1131  application or revocation of registration, in the case of a
 1132  partnership, corporation, limited liability company, or
 1133  unincorporated association, if any member of the partnership,
 1134  any manager or managing member of the limited liability company,
 1135  or any officer, director, or ultimate equitable owner of the
 1136  corporation or association has committed any act or omission
 1137  which would be cause for denying, revoking, restricting, or
 1138  suspending the registration of an individual dealer, investment
 1139  adviser, intermediary, or associated person. As used in this
 1140  subsection, the term “ultimate equitable owner” means a natural
 1141  person who directly or indirectly owns or controls an ownership
 1142  interest in the corporation, partnership, association, or other
 1143  legal entity however organized, regardless of whether such
 1144  natural person owns or controls such ownership interest through
 1145  one or more proxies, powers of attorney, nominees, corporations,
 1146  associations, partnerships, trusts, joint stock companies, or
 1147  other entities or devices, or any combination thereof.
 1148         (5) The office may deny any request to terminate or
 1149  withdraw any application or registration if the office believes
 1150  that an act that which would be a ground for denial, suspension,
 1151  restriction, or revocation under this chapter has been
 1152  committed.
 1153         Section 10. Section 517.181, Florida Statutes, is repealed.
 1154         Section 11. Paragraph (a) of subsection (4) of section
 1155  517.201, Florida Statutes, is amended to read:
 1156         517.201 Investigations; examinations; subpoenas; hearings;
 1157  witnesses.—
 1158         (4)(a) In the event of substantial noncompliance with a
 1159  subpoena or subpoena duces tecum issued or caused to be issued
 1160  by the office pursuant to this section, the office may petition
 1161  the circuit court of the county in which the person subpoenaed
 1162  resides or has its principal place of business for an order
 1163  requiring the subpoenaed person to appear and testify and to
 1164  produce such books, records, and documents as are specified in
 1165  such subpoena duces tecum. The court may grant injunctive relief
 1166  restraining the issuance, sale or offer for sale, purchase or
 1167  offer to purchase, promotion, negotiation, advertisement, or
 1168  distribution in or from offices in this state of securities or
 1169  investments in or from this state by the noncompliant a person
 1170  or its agent, employee, broker, partner, officer, director,
 1171  manager, managing member, equity holder, or any person directly
 1172  or indirectly controlling the noncompliant person stockholder
 1173  thereof, and may grant such other relief, including, but not
 1174  limited to, the restraint, by injunction or appointment of a
 1175  receiver, of any transfer, pledge, assignment, or other
 1176  disposition of such person’s assets or any concealment,
 1177  alteration, destruction, or other disposition of subpoenaed
 1178  books, records, or documents, as the court deems appropriate,
 1179  until such person has fully complied with such subpoena or
 1180  subpoena duces tecum and the office has completed its
 1181  investigation or examination. The office is entitled to the
 1182  summary procedure provided in s. 51.011, and the court shall
 1183  advance the cause on its calendar. Costs incurred by the office
 1184  to obtain an order granting, in whole or in part, such petition
 1185  for enforcement of a subpoena or subpoena duces tecum shall be
 1186  taxed against the subpoenaed person, and failure to comply with
 1187  such order shall be a contempt of court.
 1188         Section 12. Paragraph (d) of subsection (3) of section
 1189  921.0022, Florida Statutes, is amended to read:
 1190         921.0022 Criminal Punishment Code; offense severity ranking
 1191  chart.—
 1192         (3) OFFENSE SEVERITY RANKING CHART
 1193         (d) LEVEL 4
 1194  
 1195  
 1196  FloridaStatute    FelonyDegree           Description            
 1197  316.1935(3)(a)       2nd   Driving at high speed or with wanton disregard for safety while fleeing or attempting to elude law enforcement officer who is in a patrol vehicle with siren and lights activated.
 1198  499.0051(1)          3rd   Failure to maintain or deliver transaction history, transaction information, or transaction statements.
 1199  499.0051(5)          2nd   Knowing sale or delivery, or possession with intent to sell, contraband prescription drugs.
 1200  517.07(1)            3rd   Failure to register securities.   
 1201  517.12(1)            3rd   Failure of dealer or, associated person of a dealer, or issuer of securities to register.
 1202  784.07(2)(b)         3rd   Battery of law enforcement officer, firefighter, etc.
 1203  784.074(1)(c)        3rd   Battery of sexually violent predators facility staff.
 1204  784.075              3rd   Battery on detention or commitment facility staff.
 1205  784.078              3rd   Battery of facility employee by throwing, tossing, or expelling certain fluids or materials.
 1206  784.08(2)(c)         3rd   Battery on a person 65 years of age or older.
 1207  784.081(3)           3rd   Battery on specified official or employee.
 1208  784.082(3)           3rd   Battery by detained person on visitor or other detainee.
 1209  784.083(3)           3rd   Battery on code inspector.        
 1210  784.085              3rd   Battery of child by throwing, tossing, projecting, or expelling certain fluids or materials.
 1211  787.03(1)            3rd   Interference with custody; wrongly takes minor from appointed guardian.
 1212  787.04(2)            3rd   Take, entice, or remove child beyond state limits with criminal intent pending custody proceedings.
 1213  787.04(3)            3rd   Carrying child beyond state lines with criminal intent to avoid producing child at custody hearing or delivering to designated person.
 1214  787.07               3rd   Human smuggling.                  
 1215  790.115(1)           3rd   Exhibiting firearm or weapon within 1,000 feet of a school.
 1216  790.115(2)(b)        3rd   Possessing electric weapon or device, destructive device, or other weapon on school property.
 1217  790.115(2)(c)        3rd   Possessing firearm on school property.
 1218  794.051(1)           3rd   Indecent, lewd, or lascivious touching of certain minors.
 1219  800.04(7)(c)         3rd   Lewd or lascivious exhibition; offender less than 18 years.
 1220  806.135              2nd   Destroying or demolishing a memorial or historic property.
 1221  810.02(4)(a)         3rd   Burglary, or attempted burglary, of an unoccupied structure; unarmed; no assault or battery.
 1222  810.02(4)(b)         3rd   Burglary, or attempted burglary, of an unoccupied conveyance; unarmed; no assault or battery.
 1223  810.06               3rd   Burglary; possession of tools.    
 1224  810.08(2)(c)         3rd   Trespass on property, armed with firearm or dangerous weapon.
 1225  812.014(2)(c)3.      3rd   Grand theft, 3rd degree $10,000 or more but less than $20,000.
 1226  812.014 (2)(c)4.-10.   3rd   Grand theft, 3rd degree; specified items.
 1227  812.0195(2)          3rd   Dealing in stolen property by use of the Internet; property stolen $300 or more.
 1228  817.505(4)(a)        3rd   Patient brokering.                
 1229  817.563(1)           3rd   Sell or deliver substance other than controlled substance agreed upon, excluding s. 893.03(5) drugs.
 1230  817.568(2)(a)        3rd   Fraudulent use of personal identification information.
 1231  817.625(2)(a)        3rd   Fraudulent use of scanning device, skimming device, or reencoder.
 1232  817.625(2)(c)        3rd   Possess, sell, or deliver skimming device.
 1233  828.125(1)           2nd   Kill, maim, or cause great bodily harm or permanent breeding disability to any registered horse or cattle.
 1234  836.14(2)            3rd   Person who commits theft of a sexually explicit image with intent to promote it.
 1235  836.14(3)            3rd   Person who willfully possesses a sexually explicit image with certain knowledge, intent, and purpose.
 1236  837.02(1)            3rd   Perjury in official proceedings.  
 1237  837.021(1)           3rd   Make contradictory statements in official proceedings.
 1238  838.022              3rd   Official misconduct.              
 1239  839.13(2)(a)         3rd   Falsifying records of an individual in the care and custody of a state agency.
 1240  839.13(2)(c)         3rd   Falsifying records of the Department of Children and Families.
 1241  843.021              3rd   Possession of a concealed handcuff key by a person in custody.
 1242  843.025              3rd   Deprive law enforcement, correctional, or correctional probation officer of means of protection or communication.
 1243  843.15(1)(a)         3rd   Failure to appear while on bail for felony (bond estreature or bond jumping).
 1244  847.0135(5)(c)       3rd   Lewd or lascivious exhibition using computer; offender less than 18 years.
 1245  870.01(3)            2nd   Aggravated rioting.               
 1246  870.01(5)            2nd   Aggravated inciting a riot.       
 1247  874.05(1)(a)         3rd   Encouraging or recruiting another to join a criminal gang.
 1248  893.13(2)(a)1.       2nd   Purchase of cocaine (or other s. 893.03(1)(a), (b), or (d), (2)(a), (2)(b), or (2)(c)5. drugs).
 1249  914.14(2)            3rd   Witnesses accepting bribes.       
 1250  914.22(1)            3rd   Force, threaten, etc., witness, victim, or informant.
 1251  914.23(2)            3rd   Retaliation against a witness, victim, or informant, no bodily injury.
 1252  916.1085 (2)(c)1.    3rd   Introduction of specified contraband into certain DCF facilities.
 1253  918.12               3rd   Tampering with jurors.            
 1254  934.215              3rd   Use of two-way communications device to facilitate commission of a crime.
 1255  944.47(1)(a)6.       3rd   Introduction of contraband (cellular telephone or other portable communication device) into correctional institution.
 1256  951.22(1)(h), (j) & (k)   3rd   Intoxicating drug, instrumentality or other device to aid escape, or cellular telephone or other portable communication device introduced into county detention facility.
 1257  
 1258         Section 13. Section 517.1215, Florida Statutes, is amended
 1259  to read:
 1260         517.1215 Requirements, rules of conduct, and prohibited
 1261  business practices for investment advisers advisors and their
 1262  associated persons.—
 1263         (1) The commission shall specify by rule requirements for
 1264  investment advisers advisors deemed to have custody of client
 1265  funds which concern the following:
 1266         (a) Notification of custody of, maintenance of, and
 1267  safeguards for client funds.
 1268         (b) Communications with clients and independent
 1269  representatives.
 1270         (c) Requirements for investment advisers who have custody
 1271  of pooled investments.
 1272         (d) Exceptions to the custody requirements.
 1273  
 1274  In adopting the rules, the commission shall consider the rules
 1275  and regulations of the federal regulatory authority and the
 1276  North American Securities Administrators Association, Inc.
 1277         (2) The commission shall by rule establish rules of conduct
 1278  and prohibited business practices for investment advisers and
 1279  their associated persons. In adopting the rules, the commission
 1280  shall consider general industry standards as expressed in the
 1281  rules and regulations of the various federal and self-regulatory
 1282  agencies and regulatory associations, including, but not limited
 1283  to, the United States Securities and Exchange Commission, the
 1284  Financial Industry Regulatory Authority, and the North American
 1285  Securities Administrators Association, Inc.
 1286         Section 14. Subsections (18) and (22) of section 517.061,
 1287  Florida Statutes, are amended to read:
 1288         517.061 Exempt transactions.—Except as otherwise provided
 1289  in s. 517.0611 for a transaction listed in subsection (21), the
 1290  exemption for each transaction listed below is self-executing
 1291  and does not require any filing with the office before claiming
 1292  the exemption. Any person who claims entitlement to any of the
 1293  exemptions bears the burden of proving such entitlement in any
 1294  proceeding brought under this chapter. The registration
 1295  provisions of s. 517.07 do not apply to any of the following
 1296  transactions; however, such transactions are subject to the
 1297  provisions of ss. 517.301, 517.311, and 517.312:
 1298         (18) The offer or sale of any security effected by or
 1299  through a person in compliance with s. 517.12(16) s. 517.12(17).
 1300         (22) The offer or sale of securities, solely in connection
 1301  with the transfer of ownership of an eligible privately held
 1302  company, through a merger and acquisition broker in accordance
 1303  with s. 517.12(21) s. 517.12(22).
 1304         Section 15. Paragraph (b) of subsection (4) and subsection
 1305  (14) of section 517.0611, Florida Statutes, are amended to read:
 1306         517.0611 Intrastate crowdfunding.—
 1307         (4) An issuer must:
 1308         (b) Conduct transactions for the offering through a dealer
 1309  registered with the office or an intermediary registered under
 1310  s. 517.12(19) s. 517.12(20).
 1311         (14) An intermediary not registered as a dealer under s.
 1312  517.12(5) s. 517.12(6) may not:
 1313         (a) Offer investment advice or recommendations. A refusal
 1314  by an intermediary to post an offering that it deems not
 1315  credible or that represents a potential for fraud may not be
 1316  construed as an offer of investment advice or recommendation.
 1317         (b) Solicit purchases, sales, or offers to buy securities
 1318  offered or displayed on its website.
 1319         (c) Compensate employees, agents, or other persons for the
 1320  solicitation of, or based on the sale of, securities offered or
 1321  displayed on its website.
 1322         (d) Hold, manage, possess, or otherwise handle investor
 1323  funds or securities.
 1324         (e) Compensate promoters, finders, or lead generators for
 1325  providing the intermediary with the personal identifying
 1326  information of any potential investor.
 1327         (f) Engage in any other activities set forth by commission
 1328  rule.
 1329         Section 16. Subsection (1) of section 517.075, Florida
 1330  Statutes, is amended to read:
 1331         517.075 Cuba, prospectus disclosure of doing business with,
 1332  required.—
 1333         (1) Any issuer of securities that will be sold in this
 1334  state pursuant to a prospectus must disclose in the prospectus
 1335  if the issuer or any affiliate thereof, as defined in s.
 1336  517.021(1), does business with the government of Cuba or with
 1337  any person or affiliate located in Cuba. The prospectus
 1338  disclosure required by this subsection does not apply with
 1339  respect to prospectuses prepared before April 10, 1992.
 1340         Section 17. Paragraph (a) of subsection (1) of section
 1341  517.131, Florida Statutes, is amended to read:
 1342         517.131 Securities Guaranty Fund.—
 1343         (1)(a) The Chief Financial Officer shall establish a
 1344  Securities Guaranty Fund. An amount not exceeding 20 percent of
 1345  all revenues received as assessment fees pursuant to s.
 1346  517.12(9) and (10) s. 517.12(10) and (11) for dealers and
 1347  investment advisers or s. 517.1201 for federal covered advisers
 1348  and an amount not exceeding 10 percent of all revenues received
 1349  as assessment fees pursuant to s. 517.12(9) and (10) s.
 1350  517.12(10) and (11) for associated persons shall be part of the
 1351  regular license fee and shall be transferred to or deposited in
 1352  the Securities Guaranty Fund.
 1353         Section 18. Subsection (1) of section 517.211, Florida
 1354  Statutes, is amended to read:
 1355         517.211 Remedies available in cases of unlawful sale.—
 1356         (1) Every sale made in violation of either s. 517.07 or s.
 1357  517.12(1), (3), (4), (8), (10), (12), (15), or (17) (4), (5),
 1358  (9), (11), (13), (16), or (18) may be rescinded at the election
 1359  of the purchaser, except a sale made in violation of the
 1360  provisions of s. 517.1202(3) relating to a renewal of a branch
 1361  office notification shall not be subject to this section, and a
 1362  sale made in violation of the provisions of s. 517.12(12) s.
 1363  517.12(13) relating to filing a change of address amendment
 1364  shall not be subject to this section. Each person making the
 1365  sale and every director, officer, partner, or agent of or for
 1366  the seller, if the director, officer, partner, or agent has
 1367  personally participated or aided in making the sale, is jointly
 1368  and severally liable to the purchaser in an action for
 1369  rescission, if the purchaser still owns the security, or for
 1370  damages, if the purchaser has sold the security. No purchaser
 1371  otherwise entitled will have the benefit of this subsection who
 1372  has refused or failed, within 30 days of receipt, to accept an
 1373  offer made in writing by the seller, if the purchaser has not
 1374  sold the security, to take back the security in question and to
 1375  refund the full amount paid by the purchaser or, if the
 1376  purchaser has sold the security, to pay the purchaser an amount
 1377  equal to the difference between the amount paid for the security
 1378  and the amount received by the purchaser on the sale of the
 1379  security, together, in either case, with interest on the full
 1380  amount paid for the security by the purchaser at the legal rate,
 1381  pursuant to s. 55.03, for the period from the date of payment by
 1382  the purchaser to the date of repayment, less the amount of any
 1383  income received by the purchaser on the security.
 1384         Section 19. Section 517.315, Florida Statutes, is amended
 1385  to read:
 1386         517.315 Fees.—All fees of any nature collected by the
 1387  office pursuant to this chapter shall be disbursed as follows:
 1388         (1) The office shall transfer the amount of fees required
 1389  to be deposited into the Securities Guaranty Fund pursuant to s.
 1390  517.131.;
 1391         (2) After the transfer required in subsection (1), the
 1392  office shall transfer the $50 assessment fee collected from each
 1393  associated person under s. 517.12(9) and (10) s. 517.12(10) and
 1394  (11) and 30.44 percent of the $100 assessment fee paid by
 1395  dealers and investment advisers advisors for each office in the
 1396  state under s. 517.12(9) and (10) s. 517.12(10) and (11) to the
 1397  Regulatory Trust Fund.; and
 1398         (3) All remaining fees shall be deposited into the General
 1399  Revenue Fund.
 1400         Section 20. Subsection (5) of section 626.9911, Florida
 1401  Statutes, is amended to read:
 1402         626.9911 Definitions.—As used in this act, the term:
 1403         (5) “Life expectancy provider” means a person who
 1404  determines, or holds himself or herself out as determining, life
 1405  expectancies or mortality ratings used to determine life
 1406  expectancies:
 1407         (a) On behalf of a viatical settlement provider, viatical
 1408  settlement broker, life agent, or person engaged in the business
 1409  of viatical settlements;
 1410         (b) In connection with a viatical settlement investment as
 1411  defined in s. 517.021, pursuant to s. 517.021(24); or
 1412         (c) On residents of this state in connection with a
 1413  viatical settlement contract or viatical settlement investment.
 1414         Section 21. Subsection (6) of section 744.351, Florida
 1415  Statutes, is amended to read:
 1416         744.351 Bond of guardian.—
 1417         (6) When it is expedient in the judgment of any court
 1418  having jurisdiction of any guardianship property, because the
 1419  size of the bond required of the guardian is burdensome, or for
 1420  other cause, the court may order, in lieu of a bond or in
 1421  addition to a lesser bond, that the guardian place all or part
 1422  of the property of the ward in a designated financial
 1423  institution under the same conditions and limitations as are
 1424  contained in s. 69.031. A designated financial institution shall
 1425  also include a dealer, as defined in s. 517.021 s. 517.021(6),
 1426  if the dealer is a member of the Security Investment Protection
 1427  Corporation and is doing business in the state.
 1428         Section 22. Section 517.1205, Florida Statutes, is amended
 1429  to read:
 1430         517.1205 Registration of associated persons specific as to
 1431  securities dealer, investment adviser, or federal covered
 1432  adviser identified at time of registration approval.—Inasmuch as
 1433  this chapter is intended to protect investors in securities
 1434  offerings and other investment transactions regulated by that
 1435  chapter, its provisions are to be construed to require full and
 1436  fair disclosure of all, but only, those matters material to the
 1437  investor’s evaluation of the offering or other transaction. It
 1438  should, furthermore, be construed to impose the standards
 1439  provided by law on all those seeking to participate in the
 1440  state’s securities industry through registration as a securities
 1441  dealer, investment adviser, or associated person. To this end,
 1442  it is declared to be the intent of the Legislature that the
 1443  registration of associated persons required by law is specific
 1444  to the securities dealer, investment adviser, or federal covered
 1445  adviser identified at the time such registration is approved.
 1446  Notwithstanding any interpretation of law to the contrary, the
 1447  historical practice of the Department of Banking and Finance,
 1448  reflected in its rules, that requires a new application for
 1449  registration from a previously registered associated person when
 1450  that person seeks to be associated with a new securities dealer
 1451  or investment adviser is hereby ratified and approved as
 1452  consistent with legislative intent. It is, finally, declared to
 1453  be the intent of the Legislature that while approval of an
 1454  application for registration of a securities dealer, investment
 1455  adviser, or associated person requires a finding of compliance
 1456  with the applicable registration provisions of this chapter and
 1457  applicable rules the applicant’s good repute and character, such
 1458  finding is precluded by a determination that the applicant may
 1459  be denied registration on grounds provided by law.
 1460         Section 23. This act shall take effect October 1, 2023.
 1461  
 1462  ================= T I T L E  A M E N D M E N T ================
 1463  And the title is amended as follows:
 1464         Delete everything before the enacting clause
 1465  and insert:
 1466                        A bill to be entitled                      
 1467         An act relating to regulation of securities;
 1468         reordering and amending s. 517.021, F.S.; requiring
 1469         the Financial Services Commission to define the term
 1470         “accredited investor” by rule; revising definitions;
 1471         amending s. 517.072, F.S.; authorizing the commission
 1472         to adopt certain rules relating to viatical settlement
 1473         investments; making technical changes; amending s.
 1474         517.081, F.S.; revising requirements for the
 1475         registration of securities; revising application fees
 1476         for certain securities registrations; requiring the
 1477         Office of Financial Regulation to deem an application
 1478         abandoned under certain circumstances; conforming
 1479         provisions to changes made by the act; amending s.
 1480         517.082, F.S.; making technical changes; requiring the
 1481         office to deem an application for registration by
 1482         notification abandoned under certain circumstances;
 1483         amending s. 517.111, F.S.; revising grounds on which
 1484         the office may revoke, suspend, or deny the
 1485         registration of securities; specifying the office’s
 1486         powers in investigations of issuers; revising the
 1487         methods by which the office may enter an order
 1488         suspending an issuer’s right to sell securities;
 1489         amending s. 517.12, F.S.; revising applicability of
 1490         registration requirements; revising requirements for
 1491         applying for registration as a dealer, an associated
 1492         person of a dealer, or an investment adviser;
 1493         conforming a cross-reference and provisions to changes
 1494         made by the act; making technical changes; creating s.
 1495         517.1214, F.S.; defining terms; specifying continuing
 1496         education requirements for associated persons of
 1497         investment advisers and federal covered advisers;
 1498         providing that certain education credits satisfy such
 1499         requirements if certain conditions are met;
 1500         prohibiting associated persons from carrying forward
 1501         credits to subsequent reporting periods; specifying a
 1502         restriction on associated persons who fail to meet
 1503         such requirements; specifying requirements for certain
 1504         previously registered associated persons; amending s.
 1505         517.1217, F.S.; authorizing the commission to
 1506         establish rules of conduct and prohibited business
 1507         practices for intermediaries; amending s. 517.161,
 1508         F.S.; revising grounds on which the office may deny,
 1509         revoke, restrict, or suspend registrations of dealers,
 1510         investment advisers, intermediaries, and associated
 1511         persons; providing causes for denial of applications
 1512         or revocation of registrations of certain entities and
 1513         persons under certain circumstances; repealing s.
 1514         517.181, F.S., relating to escrow agreements; amending
 1515         s. 517.201, F.S.; conforming a provision to changes
 1516         made by the act; amending s. 921.0022, F.S.; revising
 1517         applicability of a criminal penalty for certain
 1518         registration violations; amending s. 517.1215, F.S.;
 1519         making technical changes; amending ss. 517.061,
 1520         517.0611, 517.075, 517.131, 517.211, 517.315,
 1521         626.9911, and 744.351, F.S.; conforming cross
 1522         references and making technical changes; amending s.
 1523         517.1205, F.S.; revising legislative intent; providing
 1524         an effective date.