Florida 2023 Regular Session

Florida House Bill H0253 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	~~CS/~~CS/HB 253 2023
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10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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12	12
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14	14		A bill to be entitled 1
15	15		An act relating to regulation of securities; 2
16	16		reordering and amending s. 517.021, F.S.; requiring 3
17	17		the Financial Services Commission to define the term 4
18	18		"accredited investor"; revising definitions; amending 5
19	19		s. 517.072, F.S.; authorizing the commission to adop t 6
20	20		certain rules relating to viatical settlement 7
21	21		investments; amending s. 517.081, F.S.; revising 8
22	22		requirements for the registration of securities; 9
23	23		revising application fees for certain securities 10
24	24		registrations; requiring the Office of Financial 11
25	25		Regulation to deem an application abandoned under 12
26	26		certain circumstances; conforming provisions to 13
27	27		changes made by the act; amending s. 517.082, F.S.; 14
28	28		making technical changes; requiring the office to deem 15
29	29		an application for registration by notification 16
30	30		abandoned under certain circumstances; amending s. 17
31	31		517.111, F.S.; revising grounds on which the office 18
32	32		may revoke, suspend, or deny the registration of 19
33	33		securities; specifying the office's powers in 20
34	34		investigations of issuers; revising the methods by 21
35	35		which the office may e nter an order suspending an 22
36	36		issuer's right to sell securities; amending s. 517.12, 23
37	37		F.S.; revising applicability of registration 24
38	38		requirements; revising requirements for applying for 25
39	39
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47	47		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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49	49
50	50
51	51		registration as a dealer, an associated person of a 26
52	52		dealer, or an investmen t adviser; conforming 27
53	53		provisions to changes made by the act; making 28
54		-	technical changes; providing definitions; providing 29
55		-	exemptions from registration requirements for private 30
56		-	fund advisers under certain conditions; providing 31
57		-	exceptions; providing requiremen ts for certain private 32
58		-	fund advisers; providing reporting requirements; 33
59		-	creating s. 517.1214, F.S.; defining terms; specifying 34
60		-	continuing education requirements for associated 35
61		-	persons of investment advisers and federal covered 36
62		-	advisers; providing that cert ain education credits 37
63		-	satisfy such requirements if certain conditions are 38
64		-	met; prohibiting associated persons from carrying 39
65		-	forward credits to subsequent reporting periods; 40
66		-	specifying a restriction on associated persons who 41
67		-	fail to meet such requirements; specifying 42
68		-	requirements for certain previously registered 43
69		-	associated persons; amending s. 517.1217, F.S.; 44
70		-	authorizing the commission to establish rules of 45
71		-	conduct and prohibited business practices for 46
72		-	intermediaries; amending s. 517.161, F.S.; revising 47
73		-	grounds on which the office may deny, revoke, 48
74		-	restrict, or suspend registrations of dealers, 49
75		-	investment advisers, intermediaries, and associated 50
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84		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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86		-
87		-
88		-	persons; providing causes for denial of applications 51
89		-	or revocation of registrations of certain entities and 52
90		-	persons under certain circumstances; repealing s. 53
91		-	517.181, F.S., relating to escrow agreements; amending 54
92		-	s. 517.201, F.S.; conforming a provision to changes 55
93		-	made by the act; amending s. 921.0022, F.S.; revising 56
94		-	applicability of a criminal penalty for certain 57
95		-	registration violations; amending s. 517.1215, F.S.; 58
96		-	making technical changes; amending ss. 517.061, 59
97		-	517.0611, 517.075, 517.131, 517.211, 517.315, 60
98		-	626.9911, and 744.351, F.S.; conforming cross -61
99		-	references and making technical changes; amending s. 62
100		-	517.1205, F.S.; revising legislative intent; providing 63
101		-	an effective date. 64
102		-	65
103		-	Be It Enacted by the Legislature of the State of Florida: 66
104		-	67
105		-	Section 1. Section 517.021, Florida Statutes, is reordered 68
106		-	and amended to read: 69
107		-	517.021 Definitions. —When used in this chapte r, unless the 70
108		-	context otherwise indicates, the following terms have the 71
109		-	following respective meanings: 72
110		-	(1) "Accredited investor" shall be defined by rule of the 73
111		-	commission in accordance with the Securities and Exchange 74
112		-	Commission Rule 501, 17 C.F.R. s. 2 30.501, as amended. 75
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121		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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124		-
125		-	(2) "Affiliate" means a person that directly, or 76
126		-	indirectly through one or more intermediaries, controls, is 77
127		-	controlled by, or is under common control with an applicant or 78
128		-	registrant. 79
129		-	(3)(2) "Associated person" means: 80
130		-	(a)1. With respect to a dealer, a natural person who is 81
131		-	employed, appointed, or authorized by a dealer and who 82
132		-	represents the dealer in effecting or attempting to effect 83
133		-	purchases or sales of securities. 84
134		-	2. The term does not include the following: 85
135		-	a. A dealer. 86
136		-	b. A partner, an officer, or a director of a dealer or a 87
137		-	person having a similar status or performing similar functions 88
138		-	as a dealer, unless such person is specified in subparagraph 1. 89
139		-	c. A dealer's employee whose function is only clerical or 90
140		-	ministerial. 91
141		-	d. A person whose transactions in this state are limited 92
142		-	to those transactions described in s. 15(i)(3) of the Securities 93
143		-	Exchange Act of 1934, as amended. 94
144		-	(b)1. With respect to an investment adviser, a natural 95
145		-	person, including, but not limited to, a partner, an officer, a 96
146		-	director, or a branch manager, or a person occupying a similar 97
147		-	status or performing similar functions, who: 98
148		-	a. Is employed by or associated with, or is subject to the 99
149		-	supervision and control of, an investment adviser registered or 100
150		-
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158		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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160		-
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162		-	required to be registered under this chapter; and 101
163		-	b. Does any of the following: 102
164		-	(I) Makes any recommendation or otherwise gives investment 103
165		-	advice regarding securities. 104
166		-	(II) Manages accounts or portfolios of clients. 105
167		-	(III) Determines which recommend ations or advice regarding 106
168		-	securities should be given. 107
169		-	(IV) Receives compensation to solicit, offer, or negotiate 108
170		-	for the sale of investment advisory services. 109
171		-	(V) Supervises employees who perform a function under this 110
172		-	sub-subparagraph. 111
173		-	2. The term does not include the following: 112
174		-	a. An investment adviser. 113
175		-	b. An employee whose function is only clerical or 114
176		-	ministerial or investment adviser, any of the following: 115
177		-	1. Any partner, officer, director, or branch manager of a 116
178		-	dealer or investment adviser or any person occupying a similar 117
179		-	status or performing similar functions; 118
180		-	2. Any natural person directly or indirectly controlling 119
181		-	or controlled by such dealer or investment adviser, other than 120
182		-	an employee whose function is only clerical or ministerial; or 121
183		-	3. Any natural person, other than a dealer, employed, 122
184		-	appointed, or authorized by a dealer, investment adviser, or 123
185		-	issuer to sell securities in any manner or act as an investment 124
186		-	adviser as defined in this section . 125
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195		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199		-	126
200		-	The partners of a partnership and the executive officers of a 127
201		-	corporation or other association registered as a dealer, and any 128
202		-	person whose transactions in this state are limited to those 129
203		-	transactions described in s. 15(h)(2) of the Securities Exchange 130
204		-	Act of 1934, are not "associated pers ons" within the meaning of 131
205		-	this definition. 132
206		-	(c)(b) With respect to a federal covered adviser, a 133
207		-	natural any person who is an investment adviser representative 134
208		-	and who has a place of business in this state, as such terms are 135
209		-	defined in Rule 203A -3 of the Securities and Exchange Commission 136
210		-	adopted under the Investment Advisers Act of 1940 , as amended. 137
211		-	(4)(3) "Boiler room" means an enterprise in which two or 138
212		-	more persons engage in telephone communications with members of 139
213		-	the public using two or more teleph ones at one location, or at 140
214		-	more than one location in a common scheme or enterprise. 141
215		-	(5)(4) "Branch office" means any location in this state of 142
216		-	a dealer or investment adviser at which one or more associated 143
217		-	persons regularly conduct the business of rende ring investment 144
218		-	advice or effecting any transactions in, or inducing or 145
219		-	attempting to induce the purchase or sale of, any security or 146
220		-	any location that is held out as such. The commission may adopt 147
221		-	by rule exceptions to this definition for dealers in order to 148
222		-	maintain consistency with the definition of a branch office used 149
223		-	by self-regulatory organizations authorized by the Securities 150
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232		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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234		-
235		-
236		-	and Exchange Commission, including, but not limited to, the 151
237		-	Financial Industry Regulatory Authority. The commission may 152
238		-	adopt by rule exceptions to this definition for investment 153
239		-	advisers. 154
240		-	(6)(7) "Commission" means the Financial Services 155
241		-	Commission. 156
242		-	(7)(5) "Control," including the terms "controlling," 157
243		-	"controlled by," and "under common control with," means the 158
244		-	possession, directly or indirectly, of the power to direct or 159
245		-	cause the direction of the management or policies of a person, 160
246		-	whether through the ownership of voting securities, by contract, 161
247		-	or otherwise. 162
248		-	(8)(6)(a) "Dealer" includes, unless otherwise specified, a 163
249		-	person, other than an associated person of a dealer, that 164
250		-	engages, for all or part of the person's time, directly or 165
251		-	indirectly, as agent or principal in the business of offering, 166
252		-	buying, selling, or otherwise dealing or trading in securities 167
253		-	issued by another person any of the following: 168
254		-	1. Any person, other than an associated person registered 169
255		-	under this chapter, who engages, either for all or part of her 170
256		-	or his time, directly or indirectly, as broker or principal in 171
257		-	the business of offering, buying, se lling, or otherwise dealing 172
258		-	or trading in securities issued by another person . 173
259		-	2. Any issuer who through persons directly compensated or 174
260		-	controlled by the issuer engages, either for all or part of her 175
261		-
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269		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273		-	or his time, directly or indirectly, in the business of offering 176
274		-	or selling securities which are issued or are proposed to be 177
275		-	issued by the issuer. 178
276		-	(b) The term "dealer" does not include the following: 179
277		-	(a) A licensed practicing attorney who renders or performs 180
278		-	any such services in connection with the reg ular practice of the 181
279		-	attorney's profession. 182
280		-	(b) A bank authorized to do business in this state, except 183
281		-	nonbank subsidiaries of a bank. 184
282		-	(c) A trust company having trust powers that it is 185
283		-	authorized to exercise in this state, which renders or performs 186
284		-	services in a fiduciary capacity incidental to the exercise of 187
285		-	its trust powers. 188
286		-	(d) A wholesaler selling exclusively to dealers. 189
287		-	(e) A person buying and selling for the person's own 190
288		-	account exclusively through a registered dealer or stock 191
289		-	exchange. 192
290		-	(f) An issuer. 193
291		-	(g) A natural person representing an issuer in the 194
292		-	purchase, sale, or distribution of the issuer's own securities 195
293		-	if such person: 196
294		-	1. Is an officer, a director, a limited liability company 197
295		-	manager or managing member, or a bona fide employee of the 198
296		-	issuer; 199
297		-	2. Has not participated in the distribution or sale of 200
298		-
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306		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310		-	securities for any issuer for which such person was, within the 201
311		-	preceding 12 months, an officer, a director, a limited liability 202
312		-	company manager or managing member, or a bona fide emp loyee; 203
313		-	3. Primarily performs, or is intended to perform at the 204
314		-	end of the distribution, substantial duties for, or on behalf 205
315		-	of, the issuer other than in connection with transactions in 206
316		-	securities; and 207
317		-	4. Does not receive a commission, compensation, or other 208
318		-	consideration for the completed sale of the issuer's securities 209
319		-	apart from the compensation received for regular duties to the 210
320		-	issuer. 211
321		-	1. Any licensed practicing attorney who renders or 212
322		-	performs any of such services in connection with the regular 213
323		-	practice of her or his profession; 214
324		-	2. Any bank authorized to do business in this state, 215
325		-	except nonbank subsidiaries of a bank; 216
326		-	3. Any trust company having trust powers which it is 217
327		-	authorized to exercise in this state, which renders or performs 218
328		-	services in a fiduciary capacity incidental to the exercise of 219
329		-	its trust powers; 220
330		-	4. Any wholesaler selling exclusively to dealers; 221
331		-	5. Any person buying and selling for her or his own 222
332		-	account exclusively through a registered dealer or stock 223
333		-	exchange; or 224
334		-	6. Pursuant to s. 517.061(11), any person associated with 225
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343		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347		-	an issuer of securities if such person is a bona fide employee 226
348		-	of the issuer who has not participated in the distribution or 227
349		-	sale of any securities within the preceding 12 months and who 228
350		-	primarily performs, or is intended to perform at the end of the 229
351		-	distribution, substantial duties for, or on behalf of, the 230
352		-	issuer other than in connection with transactions in securities. 231
353		-	(9) "Federal covered adviser" means a person that who is 232
354		-	registered or required to be registered under s. 203 of the 233
355		-	Investment Advisers Act of 1940 , as amended. The term "federal 234
356		-	covered adviser" does not include any person that who is 235
357		-	excluded from the definition of investment adviser under 236
358		-	subparagraphs (14)(b)1. -8. 237
359		-	(10) "Federal covered security" means a any security that 238
360		-	is a covered security under s. 18(b) of the Securities Act of 239
361		-	1933, as amended, or rules and regulations adopted thereunder. 240
362		-	(11) "Guarantor" means a person that who agrees in 241
363		-	writing, or that who holds itself out to the public as agreeing, 242
364		-	to pay the indebtedness of another when due, including, without 243
365		-	limitation, payments of principal and interest on a bond, 244
366		-	debenture, note, or other evidence of indebtedness, without 245
367		-	resort by the holder to any other obligor, w hether or not such 246
368		-	writing expressly states that the person signing is signing as a 247
369		-	guarantor. The obligation of a guarantor hereunder shall be a 248
370		-	continuing, absolute, and unconditional guaranty of payment, 249
371		-	without regard to the validity, regularity, or en forceability of 250
372		-
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380		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384		-	the underlying indebtedness. 251
385		-	(12) "Guaranty" means an agreement in a writing in which 252
386		-	one party either agrees, or holds itself out to the public as 253
387		-	agreeing, to pay the indebtedness of another when due, 254
388		-	including, without limitation, paym ents of principal and 255
389		-	interest on a bond, debenture, note, or other evidence of 256
390		-	indebtedness, without resort by the holder to any other obligor, 257
391		-	whether or not such writing expressly states that the person 258
392		-	signing is signing as a guarantor. An agreement th at is not 259
393		-	specifically denominated as a guaranty shall nevertheless 260
394		-	constitute a guaranty if the holder of the underlying 261
395		-	indebtedness or the holder's her or his representative or 262
396		-	trustee has the right to sue to enforce the guarantor's 263
397		-	obligations under th e guaranty. Words of guaranty or equivalent 264
398		-	words that which otherwise do not specify guaranty of payment 265
399		-	create a presumption that payment, rather than collection, is 266
400		-	guaranteed by the guarantor. Any guaranty in writing is 267
401		-	enforceable notwithstanding any statute of frauds. 268
402		-	(13) "Intermediary" means a natural person residing in 269
403		-	this the state or a corporation, trust, partnership, limited 270
404		-	liability company, association, or other legal entity registered 271
405		-	with the Secretary of State to do business in this the state, 272
406		-	which facilitates through its website the offer or sale of 273
407		-	securities of an issuer with a principal place of business in 274
408		-	this state under s. 517.0611. 275
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417		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421		-	(14)(a) "Investment adviser" means a includes any person, 276
422		-	other than an associated person of an investment adviser or a 277
423		-	federal covered adviser, that who receives compensation, 278
424		-	directly or indirectly, and engages for all or part of the 279
425		-	person's her or his time, directly or indirectly, or through 280
426		-	publications or writings, in the business of advising others as 281
427		-	to the value of securities or as to the advisability of 282
428		-	investments in, purchasing of, or selling of securities , except 283
429		-	a dealer whose performance of these services is solely 284
430		-	incidental to the conduct of her or his business as a dealer and 285
431		-	who receives no special compensation for such services . 286
432		-	(b) The term "investment adviser" does not include the 287
433		-	following: 288
434		-	1. A dealer or an associated person of a dealer whose 289
435		-	performance of services in paragraph (a) is solely incidental to 290
436		-	the conduct of the dealer's or associated person's business as a 291
437		-	dealer and who does not receive special compensation for those 292
438		-	services. 293
439		-	2. A Any licensed practicing attorney or certified public 294
440		-	accountant whose performance of such services is solely 295
441		-	incidental to the practice of the attorney's or accountant's her 296
442		-	or his profession.; 297
443		-	2. Any licensed certified public accountant whose 298
444		-	performance of such services is solely incidental to the 299
445		-	practice of her or his profession; 300
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454		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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458		-	3. A Any bank authorized to do business in t his state.; 301
459		-	4. A Any bank holding company as defined in the Bank 302
460		-	Holding Company Act of 1956, as amended, authorized to do 303
461		-	business in this state .; 304
462		-	5. A Any trust company having trust powers , as defined in 305
463		-	s. 658.12, which it is authorized to exercise in this the state, 306
464		-	which trust company renders or performs investment advisory 307
465		-	services in a fiduciary capacity incidental to the exercise of 308
466		-	its trust powers.; 309
467		-	6. A Any person that who renders investment advice 310
468		-	exclusively to insurance or investment com panies.; 311
469		-	7. A Any person that who does not hold itself herself or 312
470		-	himself out to the general public as an investment adviser and 313
471		-	has no more than 15 clients within 12 consecutive months in this 314
472		-	state.; 315
473		-	8. A Any person whose transactions in this state are 316
474		-	limited to those transactions described in s. 222(d) of the 317
475		-	Investment Advisers Act of 1940 , as amended. Those clients 318
476		-	listed in subparagraph 6. may not be included when determining 319
477		-	the number of clients of an i nvestment adviser for purposes of 320
478		-	s. 222(d) of the Investment Advisers Act of 1940 , as amended.; 321
479		-	or 322
480		-	9. A federal covered adviser. 323
481		-	(15) "Issuer" means a any person that who proposes to 324
482		-	issue, has issued, or shall hereafter issue any security. A Any 325
483		-
484		-	CS/CS/HB 253 2023
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486		-
487		-
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491		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
492		-
493		-
494		-
495		-	person that who acts as a promoter for and on behalf of a 326
496		-	corporation, trust, or unincorporated association or 327
497		-	partnership, limited liability company, association, or other 328
498		-	legal entity of any kind to be formed shall be deemed an issuer. 329
499		-	(16) "Offer to sell," "offer for sale," or "offer" means 330
500		-	an any attempt or offer to dispose of, or solicitation of an 331
501		-	offer to buy, a security or interest in a security, or an 332
502		-	investment or interest in an investment, for value. 333
503		-	(17)(8) "Office" means the Office of Finan cial Regulation 334
504		-	of the commission. 335
505		-	(18)(17) "Predecessor" means a person whose the major 336
506		-	portion of whose assets has have been acquired directly or 337
507		-	indirectly by an issuer. 338
508		-	(19)(18) "Principal" means an executive officer of a 339
509		-	corporation, partner of a partnership, sole proprietor of a sole 340
510		-	proprietorship, trustee of a trust, or any other person with 341
511		-	similar supervisory functions with respect to any organization, 342
512		-	whether incorporated or unincorporated. 343
513		-	(20)(19) "Promoter" includes the following: 344
514		-	(a) A Any person that who, acting alone or in conjunction 345
515		-	with one or more other persons, directly or indirectly takes the 346
516		-	initiative in founding and organizing the business or enterprise 347
517		-	of an issuer. 348
518		-	(b) A Any person that who, in connection with the foundi ng 349
519		-	or organizing of the business or enterprise of an issuer, 350
520		-
521		-	CS/CS/HB 253 2023
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523		-
524		-
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528		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
529		-
530		-
531		-
532		-	directly or indirectly receives in consideration of services or 351
533		-	property, or both services and property, 10 percent or more of 352
534		-	any class of securities of the issuer or 10 percent or more of 353
535		-	the proceeds from the sale of any class of securities. However, 354
536		-	a person that who receives such securities or proceeds either 355
537		-	solely as underwriting commissions or solely in connection with 356
538		-	property shall not be deemed a promoter if such person does not 357
539		-	otherwise take part in founding and organizing the enterprise. 358
540		-	(21)(20) "Qualified institutional buyer" means a any 359
541		-	qualified institutional buyer, as defined in United States 360
542		-	Securities and Exchange Commission Rule 144A, 17 C.F.R. s. 361
543		-	230.144A(a), under the Secu rities Act of 1933, as amended, or 362
544		-	any foreign buyer that satisfies the minimum financial 363
545		-	requirements set forth in such rule. 364
546		-	(22)(21) "Sale" or "sell" means a any contract of sale or 365
547		-	disposition of an any investment, security, or interest in a 366
548		-	security, for value. With respect to a security or interest in a 367
549		-	security, the term defined in this subsection does not include 368
550		-	preliminary negotiations or agreements between an issuer or any 369
551		-	person on whose behalf a n offering is to be made and any 370
552		-	underwriter or among underwriters who are or are to be in 371
553		-	privity of contract with an issuer. Any security given or 372
554		-	delivered with, or as a bonus on account of, any purchase of 373
555		-	securities or any other thing shall be conclus ively presumed to 374
556		-	constitute a part of the subject of such purchase and to have 375
557		-
558		-	CS/CS/HB 253 2023
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560		-
561		-
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565		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
566		-
567		-
568		-
569		-	been offered and sold for value. Every sale or offer of a 376
570		-	warrant or right to purchase or subscribe to another security of 377
571		-	the same or another issuer, as well as every sale or offer of a 378
572		-	security which gives the holder a present or future right or 379
573		-	privilege to convert into another security or another issuer, is 380
574		-	considered to include an offer of the other security. 381
575		-	(23)(22) "Security" includes any of the following: 382
576		-	(a) A note. 383
577		-	(b) A stock. 384
578		-	(c) A treasury stock. 385
579		-	(d) A bond. 386
580		-	(e) A debenture. 387
581		-	(f) An evidence of indebtedness. 388
582		-	(g) A certificate of deposit. 389
583		-	(h) A certificate of deposit for a security. 390
584		-	(i) A certificate of interest or participation. 391
585		-	(j) A whiskey warehouse receipt or other commodity 392
586		-	warehouse receipt. 393
587		-	(k) A certificate of interest in a profit -sharing 394
588		-	agreement or the right to participate therein. 395
589		-	(l) A certificate of interest in an oil, gas, petroleum, 396
590		-	mineral, or mining title or lease or the rig ht to participate 397
591		-	therein. 398
592		-	(m) A collateral trust certificate. 399
593		-	(n) A reorganization certificate. 400
594		-
595		-	CS/CS/HB 253 2023
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597		-
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602		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
603		-
604		-
605		-
606		-	(o) A preorganization subscription. 401
607		-	(p) A Any transferable share. 402
608		-	(q) An investment contract. 403
609		-	(r) A beneficial interest in title to property, profi ts, 404
610		-	or earnings. 405
611		-	(s) An interest in or under a profit -sharing or 406
612		-	participation agreement or scheme. 407
613		-	(t) An Any option contract that which entitles the holder 408
614		-	to purchase or sell a given amount of the underlying security at 409
615		-	a fixed price within a specified period of time. 410
616		-	(u) Any other instrument commonly known as a security, 411
617		-	including an interim or temporary bond, debenture, note, or 412
618		-	certificate. 413
619		-	(v) A Any receipt for a security, or for subscription to a 414
620		-	security, or a any right to subscribe to or purchase any 415
621		-	security. 416
622		-	(w) A viatical settlement investment. 417
623		-	(24)(23) "Underwriter" means a person that who has 418
624		-	purchased from an issuer o r an affiliate of an issuer with a 419
625		-	view to, or offers or sells for an issuer or an affiliate of an 420
626		-	issuer in connection with, the distribution of any security, or 421
627		-	participates or has a direct or indirect participation in any 422
628		-	such undertaking, or participat es or has a participation in the 423
629		-	direct or indirect underwriting of any such undertaking; except 424
630		-	that a person is shall be presumed not to be an underwriter with 425
631		-
632		-	CS/CS/HB 253 2023
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634		-
635		-
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639		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
640		-
641		-
642		-
643		-	respect to any security which it she or he has owned 426
644		-	beneficially for at least 1 year; and, fu rther, a dealer is 427
645		-	shall not be considered an underwriter with respect to any 428
646		-	securities which do not represent part of an unsold allotment to 429
647		-	or subscription by the dealer as a participant in the 430
648		-	distribution of such securities by the issuer or an affilia te of 431
649		-	the issuer; and, further, in the case of securities acquired on 432
650		-	the conversion of another security without payment of additional 433
651		-	consideration, the length of time such securities have been 434
652		-	beneficially owned by a person includes the period during whi ch 435
653		-	the convertible security was beneficially owned and the period 436
654		-	during which the security acquired on conversion has been 437
655		-	beneficially owned. 438
656		-	(25)(24) "Viatical settlement investment" means an 439
657		-	agreement for the purchase, sale, assignment, transfer, dev ise, 440
658		-	or bequest of all or any portion of a legal or equitable 441
659		-	interest in a viaticated policy as defined in chapter 626. 442
660		-	Section 2. Paragraph (d) of subsection (3) of section 443
661		-	517.072, Florida Statutes, is amended, and subsection (4) is 444
662		-	added to that section, to read: 445
663		-	517.072 Viatical settlement investments. — 446
664		-	(3) The registration provisions of ss. 517.07 and 517.12 447
665		-	do not apply to any of the following transactions in viatical 448
666		-	settlement investments; however, such transactions in viatical 449
667		-	settlement investments are subject to the provisions of ss. 450
668		-
669		-	CS/CS/HB 253 2023
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671		-
672		-
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676		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
677		-
678		-
679		-
680		-	517.301, 517.311, and 517.312: 451
681		-	(d) The transfer or assignment of a viaticated policy to a 452
682		-	bank, trust company, savings institution, insurance company, 453
683		-	dealer, investment company as defined in the Investment Company 454
684		-	Act of 1940, as amended, pension or profit-sharing trust, or 455
685		-	qualified institutional buyer as defined in United States 456
686		-	Securities and Exchange Commission Rule 144A, 17 C.F.R. s. 457
687		-	230.144A(a), or to an accredited investor as defined by Rule 501 458
688		-	of Regulation D of the Securities Act Rules , provided such 459
689		-	transfer or assignment is not for the direct or indirect 460
690		-	promotion of any scheme or enterprise with the intent of 461
691		-	violating or evading any provision of this chapter. 462
692		-	(4) The commission may establish by rule requirements and 463
693		-	standards for disclosures to purchasers of viatical settlement 464
694		-	investments and recordkeeping requirements for sellers of 465
695		-	viatical settlement investments. 466
696		-	Section 3. Paragraphs (a), (g), and (n) of subsection (3) 467
697		-	and subsections (6) and (8) of section 517.081, Florida 468
698		-	Statutes, are amended to read: 469
699		-	517.081 Registration procedure. — 470
700		-	(3) The office may require the applicant to submit to the 471
701		-	office the following information concerning the issuer and such 472
702		-	other relevant informatio n as the office may in its judgment 473
703		-	deem necessary to enable it to ascertain whether such securities 474
704		-	shall be registered pursuant to the provisions of this section: 475
705		-
706		-	CS/CS/HB 253 2023
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708		-
709		-
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713		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
714		-
715		-
716		-
717		-	(a) The names and addresses of : 476
718		-	1. All the directors, trustees, and officers, if the 477
719		-	issuer is be a corporation, association, or trust . 478
720		-	2. All the managers or managing members, if the issuer is 479
721		-	a limited liability company. 480
722		-	3. ; of All the partners, if the issuer is be a 481
723		-	partnership. 482
724		-	4. ; or of The issuer, if the issuer is a sole 483
725		-	proprietorship or natural person be an individual. 484
726		-	(g)1. A specimen copy of the securities certificate, if 485
727		-	applicable, security and a copy of any circular, prospectus, 486
728		-	advertisement, or other description of such securities. 487
729		-	2. The commission shall adop t a form for a simplified 488
730		-	offering circular to be used solely by corporations to register, 489
731		-	under this section, securities of the corporation that are sold 490
732		-	in offerings in which the aggregate offering price in any 491
733		-	consecutive 12-month period does not exceed the amount provided 492
734		-	in s. 3(b) of the Securities Act of 1933 , as amended. The 493
735		-	following issuers shall not be eligible to submit a simplified 494
736		-	offering circular adopted pursuant to this subparagraph: 495
737		-	a. An issuer seeking to register securities for resale by 496
738		-	persons other than the issuer. 497
739		-	b. An issuer that who is subject to any of the 498
740		-	disqualifications described in 17 C.F.R. s. 230.262, adopted 499
741		-	pursuant to the Securities Act of 1933, as amended, or that who 500
742		-
743		-	CS/CS/HB 253 2023
744		-
745		-
746		-
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750		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
751		-
752		-
753		-
754		-	has been or is engaged or is about to engage in an activity that 501
755		-	would be grounds for denial, revocation, or suspension under s. 502
756		-	517.111. For purposes of this subparagraph, an issuer includes 503
757		-	an issuer's director, officer, general partner, manager or 504
758		-	managing member, trustee, or equity owner shareholder who owns 505
759		-	at least 10 percent of the ownership interests shares of the 506
760		-	issuer, promoter, or selling agent of the securities to be 507
761		-	offered or any officer, director, or partner, or manager or 508
762		-	managing member of such selling agent. 509
763		-	c. An issuer that who is a development-stage company that 510
764		-	either has no specific business plan or purpose or has indicated 511
765		-	that its business plan is to merge with an unidentified company 512
766		-	or companies. 513
767		-	d. An issuer of offerings in which the specific business 514
768		-	or properties cannot be described. 515
769		-	e. Any issuer the office determines is ineligible because 516
770		-	if the form does would not provide full and fair disclosure of 517
771		-	material information for the type of offering to be registered 518
772		-	by the issuer. 519
773		-	f. Any issuer that corporation which has failed to provide 520
774		-	the office the reports required for a previous offering 521
775		-	registered pursuant to this subparagraph. 522
776		-	523
777		-	As a condition precedent to qualifying for use of the simplified 524
778		-	offering circular, an issuer a corporation shall agree to 525
779		-
780		-	CS/CS/HB 253 2023
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782		-
783		-
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787		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
788		-
789		-
790		-
791		-	provide the office with an annual financial report containing a 526
792		-	balance sheet as of the end of the issuer's fiscal year and a 527
793		-	statement of income for such year, prepared in accordance with 528
794		-	United States generally accepted accounting principles and 529
795		-	accompanied by an in dependent accountant's report. If the issuer 530
796		-	has more than 100 security holders at the end of a fiscal year, 531
797		-	the financial statements must be audited. Annual financial 532
798		-	reports must be filed with the office within 90 days after the 533
799		-	close of the issuer's fis cal year for each of the first 5 years 534
800		-	following the effective date of the registration. 535
801		-	(n) If the issuer is a corporation, there shall be filed 536
802		-	with the application a copy of its articles of incorporation 537
803		-	with all amendments and of its existing bylaws, if not already 538
804		-	on file in the office. If the issuer is a limited liability 539
805		-	company, there shall be filed with the application a copy of the 540
806		-	articles of organization with all the amendments and a copy of 541
807		-	the company's operating agreement as may be amended, if not 542
808		-	already on file with the office. If the issuer is a trustee, 543
809		-	there shall be filed with the application a copy of all 544
810		-	instruments by which the trust is created or declared and in 545
811		-	which it is accepted and acknowledged. If the issuer is a 546
812		-	partnership, unincorporated association, joint -stock company, or 547
813		-	any other form of organization whatsoever, there shall be filed 548
814		-	with the application a copy of its articles of partnership or 549
815		-	association and all other papers pertaining to its organization, 550
816		-
817		-	CS/CS/HB 253 2023
818		-
819		-
820		-
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824		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
825		-
826		-
827		-
828		-	if not already on file in the office. 551
829		-	(6) An issuer filing an application under this section 552
830		-	shall, at the time of filing, pay the office a nonreturnable fee 553
831		-	of $1,000 per application for each offering that exceeds the 554
832		-	amount provided in s. 3(b) of the Securities Ac t of 1933, as 555
833		-	amended, or $200 per application for each offering that does not 556
834		-	exceed the amount provided in s. 3(b) of the Securities Act of 557
835		-	1933, as amended. 558
836		-	(8) The office shall deem an application to register 559
837		-	securities filed with the office abandone d if the issuer or any 560
838		-	person acting on behalf of the issuer has failed to complete 561
839		-	timely an application as specified by commission rule The 562
840		-	commission may by rule establish requirements and standards for: 563
841		-	(a) Disclosures to purchasers of viatical settl ement 564
842		-	investments. 565
843		-	(b) Recordkeeping requirements for sellers of viatical 566
844		-	settlement investments. 567
845		-	Section 4. Section 517.082, Florida Statutes, is amended 568
846		-	to read: 569
847		-	517.082 Notification Registration by notification; federal 570
848		-	registration statements .— 571
849		-	(1) Except as provided in subsection (3), Securities 572
850		-	offered or sold pursuant to a registration statement filed under 573
851		-	the Securities Act of 1933 , as amended, are shall be entitled to 574
852		-	registration by notification in the manner provided in 575
853		-
854		-	CS/CS/HB 253 2023
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856		-
857		-
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861		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
862		-
863		-
864		-
865		-	subsection (2), provided that before prior to the offer or sale 576
866		-	the registration statement has become effective. 577
867		-	(2) An application for registration by notification shall 578
868		-	be filed with the office, shall contain the following 579
869		-	information, and shall be acc ompanied by all of the following: 580
870		-	(a) An application to sell executed by the issuer, any 581
871		-	person on whose behalf the offering is made, a dealer registered 582
872		-	under this chapter, or any duly authorized agent of any such 583
873		-	person, setting forth the name and addr ess of the applicant, the 584
874		-	name and address of the issuer, and the title of the securities 585
875		-	to be offered and sold .; 586
876		-	(b) Copies of such documents filed with the Securities and 587
877		-	Exchange Commission as the Financial Services Commission may by 588
878		-	rule require.; 589
879		-	(c) An irrevocable written consent to service as required 590
880		-	by s. 517.101.; and 591
881		-	(d) A nonreturnable fee of $1,000 per application. 592
882		-	593
883		-	A registration under this section becomes effective when the 594
884		-	federal registration statement becomes effective or as of the 595
885		-	date the application is filed with the office, whichever is 596
886		-	later, provided that, in addition to the items listed in 597
887		-	paragraphs (a)-(d), the office has received written notification 598
888		-	of effective registration under the Securities Act of 1933 , as 599
889		-	amended, or the Investment Company Act of 1940 , as amended, 600
890		-
891		-	CS/CS/HB 253 2023
892		-
893		-
894		-
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898		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
899		-
900		-
901		-
902		-	within 10 business days after from the date federal registration 601
903		-	is granted. Failure to provide all the information required by 602
904		-	this subsection to the office within 60 days after of the date 603
905		-	the registration statement becomes effective with the Securities 604
906		-	and Exchange Commission shall be a violation of this chapter. 605
907		-	(3) Except for units of limited partnership interests or 606
908		-	such other securities as the commission describes by rule as 607
909		-	exempt from this subsecti on due to high investment quality, the 608
910		-	provisions of this section may not be used to register 609
911		-	securities if the offering price at the time of effectiveness 610
912		-	with the Securities and Exchange Commission is $5 or less per 611
913		-	share, unless such securities are list ed or designated, or 612
914		-	approved for listing or designation upon notice of issuance, on 613
915		-	a stock exchange registered pursuant to the Securities Exchange 614
916		-	Act of 1934, as amended, or on the National Association of 615
917		-	Securities Dealers Automated Quotation (NASDAQ) System, or 616
918		-	unless such securities are of the same issuer and of senior or 617
919		-	substantially equal rank to securities so listed or designated. 618
920		-	(4) In lieu of filing with the office the application, 619
921		-	fees, and documents for registration required by subsection ( 2), 620
922		-	the commission may establish, by rule, procedures for depositing 621
923		-	fees and filing documents by electronic means, provided such 622
924		-	procedures provide the office with the information and data 623
925		-	required by this section. 624
926		-	(5) If the Securities and Exchange Com mission has not 625
927		-
928		-	CS/CS/HB 253 2023
929		-
930		-
931		-
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935		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
936		-
937		-
938		-
939		-	declared effective the applicant's federal registration 626
940		-	statement within 180 days after the applicant's filing with the 627
941		-	office of an application for registration by notification, the 628
942		-	office must deem the application abandoned. 629
943		-	Section 5. Section 517.111, Florida Statutes, is amended 630
944		-	to read: 631
945		-	517.111 Revocation or denial of registration of 632
946		-	securities.— 633
947		-	(1) The office may revoke or suspend the registration of 634
948		-	any security, or may deny any application to register 635
949		-	securities, if, upon examination or investigation into the 636
950		-	affairs of the issuer of such security , the office determines it 637
951		-	shall appear that: 638
952		-	(a) The issuer cannot pay its debts as they become due in 639
953		-	the usual course of business is insolvent; 640
954		-	(b) The issuer or any officer, director, manager or 641
955		-	managing member, or control person of the issuer has violated 642
956		-	any provision of this chapter or any rule made hereunder or any 643
957		-	order of the office of which such issuer has notice; 644
958		-	(c) The issuer or any officer, director, manager or 645
959		-	managing member, or control person of the issuer has been or is 646
960		-	engaged or is about to engage in fraudulent transactions; 647
961		-	(d) The issuer or any officer, director, manager or 648
962		-	managing member, or control person of the issuer has been found 649
963		-	guilty of a fraudulent act in connection with any sale of 650
964		-
965		-	CS/CS/HB 253 2023
966		-
967		-
968		-
969		-	CODING: Words stricken are deletions; words underlined are additions.
970		-	hb0253-02-c2
971		-	Page 27 of 71
972		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
973		-
974		-
975		-
976		-	securities, has engaged, is engaged, or is about to engage, in 651
977		-	making a fictitious sale or purchase of any security, or in any 652
978		-	practice or sale of any security which is fraudulent or a 653
979		-	violation of any law; 654
980		-	(e) The issuer or any officer, director, manager or 655
981		-	managing member, or control person of the issuer has had a final 656
982		-	judgment entered against such issuer or person in a civil action 657
983		-	on the grounds of fraud, embezzlement, misrepresentation, or 658
984		-	deceit; 659
985		-	(f) The issuer or any officer, director, manager or 660
986		-	managing member, or control person of the issuer has engaged in 661
987		-	any action that would be grounds for revocation, denial, or 662
988		-	suspension under s. 517.161(1) demonstrated any evidence of 663
989		-	unworthiness; 664
990		-	(g) The issuer or any officer, director, manager or 665
991		-	managing member, or control person of the issuer is in any other 666
992		-	way dishonest or has made any fraudulent representations or 667
993		-	failed to disclose any material information in any prospectus or 668
994		-	in any circular or other lit erature that has been distributed 669
995		-	concerning the issuer or its securities; 670
996		-	(h) The security registered or sought to be registered is 671
997		-	the subject of an injunction entered by a court of competent 672
998		-	jurisdiction or is the subject of an administrative stop -order 673
999		-	or similar order prohibiting the offer or sale of the security; 674
1000		-	or 675
1001		-
1002		-	CS/CS/HB 253 2023
1003		-
1004		-
1005		-
1006		-	CODING: Words stricken are deletions; words underlined are additions.
1007		-	hb0253-02-c2
1008		-	Page 28 of 71
1009		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1010		-
1011		-
1012		-
1013		-	(i) For any security for which registration has been 676
1014		-	applied pursuant to s. 517.081, the terms of the offer or sale 677
1015		-	of such securities would not be fair, just, or equitable ; or 678
1016		-	(j) The issuer or any person acting on behalf of the 679
1017		-	issuer has failed to timely complete any application for 680
1018		-	registration filed with the office pursuant to the provisions of 681
1019		-	s. 517.081 or s. 517.082 or any rule adopted under such 682
1020		-	sections. 683
1021		-	(2) In making such examination or investigation, the 684
1022		-	office shall have access to and may compe l the production of all 685
1023		-	the books and papers of such issuer and may administer oaths to 686
1024		-	and examine the officers of such issuer or any other person 687
1025		-	connected therewith as to its business and affairs and may also 688
1026		-	require a balance sheet exhibiting the asset s and liabilities of 689
1027		-	any such issuer or its income statement, or both, to be 690
1028		-	certified to by a public accountant either of this state or of 691
1029		-	any other state where the issuer's business is located. Whenever 692
1030		-	the office deems it necessary, it may also require such balance 693
1031		-	sheet or income statement, or both, to be made more specific in 694
1032		-	such particulars as the office may require. 695
1033		-	(3)(2) If any issuer refuses shall refuse to permit an 696
1034		-	examination or investigation to be made by the office, it shall 697
1035		-	be proper ground for revocation of registration. 698
1036		-	(4)(3) If the office deems it necessary, it may enter an 699
1037		-	order suspending the right to sell securities pending any 700
1038		-
1039		-	CS/CS/HB 253 2023
1040		-
1041		-
1042		-
1043		-	CODING: Words stricken are deletions; words underlined are additions.
1044		-	hb0253-02-c2
1045		-	Page 29 of 71
1046		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1047		-
1048		-
1049		-
1050		-	examination or investigation, provided that the order shall 701
1051		-	state the office's grounds for taking such a ction. 702
1052		-	(5)(4) Notice of the entry of such order shall be given 703
1053		-	personally or by mail, personally, by telephone confirmed in 704
1054		-	writing, or by telegraph to the issuer. Before such order is 705
1055		-	made final, the issuer applying for registration shall, on 706
1056		-	application, be entitled to a hearing. 707
1057		-	(6)(5) The office may deny any request to terminate any 708
1058		-	registration or to withdraw any application for registration if 709
1059		-	the office believes that an act which would be grounds for 710
1060		-	denial, suspension, or re vocation under this chapter has been 711
1061		-	committed. 712
1062		-	Section 6. Subsections (3) through (22) of section 517.12, 713
1063		-	Florida Statutes, are renumbered as subsections (2) through 714
1064		-	(21), respectively, subsection (1), present subsections (2) and 715
1065		-	(3), paragraph (b) of present subsection (6), present 716
1066		-	subsections (7) and (11), paragraph (b) of present subsection 717
1067		-	(15), and present subsections (20) and (21) of that section are 718
1068		-	amended, and a new subsection (22) is added to that section, to 719
1069		-	read: 720
1070		-	517.12 Registration of de alers, associated persons, 721
1071		-	intermediaries, and investment advisers. — 722
1072		-	(1) No dealer or, associated person, or issuer of 723
1073		-	securities shall sell or offer for sale any securities in or 724
1074		-	from offices in this state , or sell securities to persons in 725
1075		-
1076		-	CS/CS/HB 253 2023
1077		-
1078		-
1079		-
1080		-	CODING: Words stricken are deletions; words underlined are additions.
1081		-	hb0253-02-c2
1082		-	Page 30 of 71
1083		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1084		-
1085		-
1086		-
1087		-	this state from offices outside this state, by mail or 726
1088		-	otherwise, unless the person is has been registered with the 727
1089		-	office as a dealer or as an associated person of a dealer 728
1090		-	pursuant to the provisions of this section. The office shall not 729
1091		-	register any person as an asso ciated person of a dealer unless 730
1092		-	the dealer with which the applicant seeks registration is 731
1093		-	lawfully registered with the office pursuant to this chapter. 732
1094		-	(2) The registration requirements of this section do not 733
1095		-	apply to the issuers of securities exempted by s. 517.051(1)-(8) 734
1096		-	and (10). 735
1097		-	(2)(3) Except as otherwise provided in s. 736
1098		-	517.061(11)(a)4., (13), (16), (17), or (19), The registration 737
1099		-	requirements of this section do not apply in a transaction 738
1100		-	exempted by s. 517.061(1)-(10) and (12), s. 517.061(1)-(12), 739
1101		-	(14), and (15). 740
1102		-	(5)(6) A dealer, associated person, or investment adviser, 741
1103		-	in order to obtain registration, must file with the office a 742
1104		-	written application, on a form which the commission may by rule 743
1105		-	prescribe. The commission may establish, by rule, pro cedures for 744
1106		-	depositing fees and filing documents by electronic means 745
1107		-	provided such procedures provide the office with the information 746
1108		-	and data required by this section. Each dealer or investment 747
1109		-	adviser must also file an irrevocable written consent to serv ice 748
1110		-	of civil process similar to that provided for in s. 517.101. The 749
1111		-	application shall contain such information as the commission or 750
1112		-
1113		-	CS/CS/HB 253 2023
1114		-
1115		-
1116		-
1117		-	CODING: Words stricken are deletions; words underlined are additions.
1118		-	hb0253-02-c2
1119		-	Page 31 of 71
1120		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1121		-
1122		-
1123		-
1124		-	office may require concerning such matters as: 751
1125		-	(b) The applicant's form and place of organization; and, 752
1126		-	if the applicant is: 753
1127		-	1. A corporation, a copy of its articles of incorporation 754
1128		-	and amendments to the articles of incorporation ; 755
1129		-	2. A limited liability company, a copy of its articles of 756
1130		-	organization with amendments to its articles; or 757
1131		-	3., if A partnership, a copy of the partnership agreement. 758
1132		-	(6)(7) The application must also contain such information 759
1133		-	as the commission or office may require about the applicant; any 760
1134		-	member, principal, or director of the applicant or any person 761
1135		-	having a similar status or performing simi lar functions; any 762
1136		-	person directly or indirectly controlling the applicant; or any 763
1137		-	employee of a dealer or of an investment adviser rendering 764
1138		-	investment advisory services. Each applicant and any direct 765
1139		-	owners, principals, or indirect owners that are requir ed to be 766
1140		-	reported on Form BD or Form ADV pursuant to subsection (14) (15) 767
1141		-	shall submit fingerprints for live -scan processing in accordance 768
1142		-	with rules adopted by the commission. The fingerprints may be 769
1143		-	submitted through a third -party vendor authorized by th e 770
1144		-	Department of Law Enforcement to provide live -scan 771
1145		-	fingerprinting. The costs of fingerprint processing shall be 772
1146		-	borne by the person subject to the background check. The 773
1147		-	Department of Law Enforcement shall conduct a state criminal 774
1148		-	history background check , and a federal criminal history 775
1149		-
1150		-	CS/CS/HB 253 2023
1151		-
1152		-
1153		-
1154		-	CODING: Words stricken are deletions; words underlined are additions.
1155		-	hb0253-02-c2
1156		-	Page 32 of 71
1157		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1158		-
1159		-
1160		-
1161		-	background check must be conducted through the Federal Bureau of 776
1162		-	Investigation. The office shall review the results of the state 777
1163		-	and federal criminal history background checks and determine 778
1164		-	whether the applicant meets licen sure requirements. The 779
1165		-	commission may waive, by rule, the requirement that applicants, 780
1166		-	including any direct owners, principals, or indirect owners that 781
1167		-	are required to be reported on Form BD or Form ADV pursuant to 782
1168		-	subsection (14) (15), submit fingerprints or the requirement 783
1169		-	that such fingerprints be processed by the Department of Law 784
1170		-	Enforcement or the Federal Bureau of Investigation. The 785
1171		-	commission or office may require information about any such 786
1172		-	applicant or person concerning such matters as: 787
1173		-	(a) The applicant's or person's His or her full name, and 788
1174		-	any other names by which the applicant or person he or she may 789
1175		-	have been known, and the applicant's or person's his or her age, 790
1176		-	social security number, photograph, qualifications, and 791
1177		-	educational and busines s history. 792
1178		-	(b) Any injunction or administrative order by a state or 793
1179		-	federal agency, national securities exchange, or national 794
1180		-	securities association involving a security or any aspect of a 795
1181		-	dealer's or investment adviser's regulated the securities 796
1182		-	business and any injunction or administrative order by a state 797
1183		-	or federal agency regulating banking, insurance, finance, or 798
1184		-	small loan companies, real estate, mortgage brokers, or other 799
1185		-	related or similar industries, which injunctions or 800
1186		-
1187		-	CS/CS/HB 253 2023
1188		-
1189		-
1190		-
1191		-	CODING: Words stricken are deletions; words underlined are additions.
1192		-	hb0253-02-c2
1193		-	Page 33 of 71
1194		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1195		-
1196		-
1197		-
1198		-	administrative orders rel ate to such person. 801
1199		-	(c) The applicant's or person's His or her conviction of, 802
1200		-	or plea of nolo contendere to, a criminal offense or the 803
1201		-	applicant's or person's his or her commission of any acts which 804
1202		-	would be grounds for refusal of an application under s. 517.161. 805
1203		-	(d) The names and addresses of other persons of whom the 806
1204		-	office may inquire as to the applicant's or person's his or her 807
1205		-	character, reputation, and financial responsibility. 808
1206		-	(10)(a)(11)(a) If the office finds that the applicant is 809
1207		-	of good repute and character and has complied with the 810
1208		-	applicable registration provisions of this chapter and the rules 811
1209		-	made pursuant hereto, it shall register the applicant unless the 812
1210		-	applicant is otherwise disqualified for registration pursuant to 813
1211		-	law. The registration of each dealer, investment adviser, and 814
1212		-	associated person expires on December 31 of the year the 815
1213		-	registration became effective unless the registrant has renewed 816
1214		-	its his or her registration on or before that date. Registration 817
1215		-	may be renewed by furn ishing such information as the commission 818
1216		-	may require, together with payment of the fee required in 819
1217		-	paragraph (9)(a) (10)(a) for dealers, investment advisers, or 820
1218		-	associated persons and the payment of any amount lawfully due 821
1219		-	and owing to the office pursuant to any order of the office or 822
1220		-	pursuant to any agreement with the office. Any dealer, 823
1221		-	investment adviser, or associated person who has not renewed a 824
1222		-	registration by the time the current registration expires may 825
1223		-
1224		-	CS/CS/HB 253 2023
1225		-
1226		-
1227		-
1228		-	CODING: Words stricken are deletions; words underlined are additions.
1229		-	hb0253-02-c2
1230		-	Page 34 of 71
1231		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1232		-
1233		-
1234		-
1235		-	request reinstatement of such registration by filing with the 826
1236		-	office, on or before January 31 of the year following the year 827
1237		-	of expiration, such information as may be required by the 828
1238		-	commission, together with payment of the fee required in 829
1239		-	paragraph (9)(a) (10)(a) for dealers, investment advisers, or 830
1240		-	associated persons and a late fee equal to the amount of such 831
1241		-	fee. Any reinstatement of registration granted by the office 832
1242		-	during the month of January shall be deemed effective 833
1243		-	retroactive to January 1 of that year. 834
1244		-	(b) The office shall waive the $50 as sessment fee for an 835
1245		-	associated person required by paragraph (9)(a) (10)(a) for a 836
1246		-	registrant renewing his or her registration who: 837
1247		-	1. Is an active duty member of the United States Armed 838
1248		-	Forces or the spouse of such member; 839
1249		-	2. Is or was a member of the U nited States Armed Forces 840
1250		-	and served on active duty within the 2 years preceding the 841
1251		-	expiration date of the registration pursuant to paragraph (a). 842
1252		-	To qualify for the fee waiver, a registrant who is a former 843
1253		-	member of the United States Armed Forces who ser ved on active 844
1254		-	duty within the 2 years preceding the expiration date of the 845
1255		-	registration must have received an honorable discharge upon 846
1256		-	separation or discharge from the United States Armed Forces; or 847
1257		-	3. Is the surviving spouse of a member of the United 848
1258		-	States Armed Forces if the member was serving on active duty at 849
1259		-	the time of death and died within the 2 years preceding the 850
1260		-
1261		-	CS/CS/HB 253 2023
1262		-
1263		-
1264		-
1265		-	CODING: Words stricken are deletions; words underlined are additions.
1266		-	hb0253-02-c2
1267		-	Page 35 of 71
1268		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1269		-
1270		-
1271		-
1272		-	surviving spouse's registration expiration date pursuant to 851
1273		-	paragraph (a). 852
1274		-	853
1275		-	A registrant seeking such fee waiver must submit proof, in a 854
1276		-	form prescribed by commission rule, that the registrant meets 855
1277		-	one of the qualifications in this paragraph. 856
1278		-	(14)(15) 857
1279		-	(b) In lieu of filing with the office the applications 858
1280		-	specified in subsection (5) (6), the fees required by subsection 859
1281		-	(9) (10), the renewals required by subsection (10) (11), and the 860
1282		-	termination notices required by subsection (11) (12), the 861
1283		-	commission may by rule establish procedures for the deposit of 862
1284		-	such fees and documents with the Central Registration Depository 863
1285		-	or the Investment Adviser Registration Depository of the 864
1286		-	Financial Industry Regulatory Authority, as developed under 865
1287		-	contract with the North American Securities Administrators 866
1288		-	Association, Inc. 867
1289		-	(19)(20) An intermediary may not engage in business in 868
1290		-	this state unless the in termediary is registered as a dealer or 869
1291		-	as an intermediary with the office pursuant to this section to 870
1292		-	facilitate the offer or sale of securities in accordance with s. 871
1293		-	517.0611. An intermediary, in order to obtain registration, must 872
1294		-	file with the office a written application on a form prescribed 873
1295		-	by commission rule and pay a registration fee of $200. The fees 874
1296		-	under this subsection shall be deposited into the Regulatory 875
1297		-
1298		-	CS/CS/HB 253 2023
1299		-
1300		-
1301		-
1302		-	CODING: Words stricken are deletions; words underlined are additions.
1303		-	hb0253-02-c2
1304		-	Page 36 of 71
1305		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1306		-
1307		-
1308		-
1309		-	Trust Fund of the office. The commission may establish by rule 876
1310		-	procedures for depositing f ees and filing documents by 877
1311		-	electronic means if such procedures provide the office with the 878
1312		-	information and data required by this section. Each intermediary 879
1313		-	must also file an irrevocable written consent to service of 880
1314		-	civil process, as provided in s. 517.10 1. 881
1315		-	(a) The application must contain such information as the 882
1316		-	commission or office may require concerning: 883
1317		-	1. The name of the applicant and address of its principal 884
1318		-	office and each office in this state. 885
1319		-	2. The applicant's form and place of organization ; and, if 886
1320		-	the applicant is: 887
1321		-	a. A corporation, a copy of its articles of incorporation 888
1322		-	and amendments to the articles of incorporation ; 889
1323		-	b. A limited liability company, a copy of its articles of 890
1324		-	organization and amendments to the articles and a copy of t he 891
1325		-	company's operating agreement as may be amended; or 892
1326		-	c., if A partnership, a copy of the partnership agreement. 893
1327		-	3. The website address where securities of the issuer will 894
1328		-	be offered. 895
1329		-	4. Contact information. 896
1330		-	(b) The application must also contain s uch information as 897
1331		-	the commission may require by rule about the applicant; any 898
1332		-	member, principal, or director of the applicant or any person 899
1333		-	having a similar status or performing similar functions; or any 900
1334		-
1335		-	CS/CS/HB 253 2023
1336		-
1337		-
1338		-
1339		-	CODING: Words stricken are deletions; words underlined are additions.
1340		-	hb0253-02-c2
1341		-	Page 37 of 71
1342		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1343		-
1344		-
1345		-
1346		-	persons directly or indirectly controlling the appl icant. Each 901
1347		-	applicant and any direct owners, principals, or indirect owners 902
1348		-	that are required to be reported on a form adopted by commission 903
1349		-	rule shall submit fingerprints for live -scan processing in 904
1350		-	accordance with rules adopted by the commission. The 905
1351		-	fingerprints may be submitted through a third -party vendor 906
1352		-	authorized by the Department of Law Enforcement to provide live -907
1353		-	scan fingerprinting. The costs of fingerprint processing shall 908
1354		-	be borne by the person subject to the background check. The 909
1355		-	Department of Law Enforcement shall conduct a state criminal 910
1356		-	history background check, and a federal criminal history 911
1357		-	background check must be conducted through the Federal Bureau of 912
1358		-	Investigation. The office shall review the results of the state 913
1359		-	and federal criminal h istory background checks and determine 914
1360		-	whether the applicant meets registration requirements. The 915
1361		-	commission may waive, by rule, the requirement that applicants, 916
1362		-	including any direct owners, principals, or indirect owners, 917
1363		-	which are required to be reported on a form adopted by 918
1364		-	commission rule, submit fingerprints or the requirement that 919
1365		-	such fingerprints be processed by the Department of Law 920
1366		-	Enforcement or the Federal Bureau of Investigation. The 921
1367		-	commission, by rule, or the office may require information ab out 922
1368		-	any applicant or person, including: 923
1369		-	1. The applicant's or person's His or her full name and 924
1370		-	any other names by which the applicant or person he or she may 925
1371		-
1372		-	CS/CS/HB 253 2023
1373		-
1374		-
1375		-
1376		-	CODING: Words stricken are deletions; words underlined are additions.
1377		-	hb0253-02-c2
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1379		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1380		-
1381		-
1382		-
1383		-	have been known and the applicant's or person's his or her age, 926
1384		-	social security number, photogr aph, qualifications, and 927
1385		-	educational and business history. 928
1386		-	2. Any injunction or administrative order by a state or 929
1387		-	federal agency, national securities exchange, or national 930
1388		-	securities association involving a security or any aspect of an 931
1389		-	intermediary's regulated the securities business and any 932
1390		-	injunction or administrative order by a state or federal agency 933
1391		-	regulating banking, insurance, finance, or small loan companies, 934
1392		-	real estate, mortgage brokers, or other related or similar 935
1393		-	industries, which relate to such person. 936
1394		-	3. The applicant's or person's His or her conviction of, 937
1395		-	or plea of nolo contendere to, a criminal offense or the 938
1396		-	applicant's or person's his or her commission of any acts that 939
1397		-	would be grounds for refusal of an application under s. 517.161. 940
1398		-	(c) The application must be amended within 30 days if any 941
1399		-	information contained in the form becomes inaccurate for any 942
1400		-	reason. 943
1401		-	(d) An intermediary or persons affiliated with the 944
1402		-	intermediary are not subject to any disqualification described 945
1403		-	in s. 517.1611 or United States Securities and Exchange 946
1404		-	Commission Rule 506(d), 17 C.F.R. 230.506(d), adopted pursuant 947
1405		-	to the Securities Act of 1933 , as amended. Each director, 948
1406		-	officer, manager or managing member, control person of the 949
1407		-	issuer, any person occupying a similar status or performing a 950
1408		-
1409		-	CS/CS/HB 253 2023
1410		-
1411		-
1412		-
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1416		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1417		-
1418		-
1419		-
1420		-	similar function, and each person holding more than 20 percent 951
1421		-	of the ownership interests shares of the intermediary is subject 952
1422		-	to this requirement. 953
1423		-	(e) If the office finds that the applicant is of good 954
1424		-	repute and character and has complied with the applicable 955
1425		-	registration provisions of this chapter and the rules adopted 956
1426		-	thereunder, it shall register the applicant. The registration of 957
1427		-	each intermediary expires on December 31 of the year the 958
1428		-	registration became effec tive unless the registrant renews his 959
1429		-	or her registration on or before that date. Registration may be 960
1430		-	renewed by furnishing such information as the commission may 961
1431		-	require by rule, together with payment of a $200 fee and the 962
1432		-	payment of any amount due to the office pursuant to any order of 963
1433		-	the office or pursuant to any agreement with the office. An 964
1434		-	intermediary who has not renewed a registration by the time that 965
1435		-	the current registration expires may request reinstatement of 966
1436		-	such registration by filing with the office, on or before 967
1437		-	January 31 of the year following the year of expiration, such 968
1438		-	information as required by the commission, together with payment 969
1439		-	of the $200 fee and a late fee of $200. Any reinstatement of 970
1440		-	registration granted by the office during the month of January 971
1441		-	is deemed effective retroactive to January 1 of that year. 972
1442		-	(20)(21) The registration requirements of this section do 973
1443		-	not apply to any general lines insurance agent or life insurance 974
1444		-	agent licensed under chapter 626, for the sale of a sec urity as 975
1445		-
1446		-	CS/CS/HB 253 2023
1447		-
1448		-
1449		-
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1453		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1454		-
1455		-
1456		-
1457		-	defined in s. 517.021(23)(g) s. 517.021(22)(g), if the 976
1458		-	individual is directly authorized by the issuer to offer or sell 977
1459		-	the security on behalf of the issuer and the issuer is a 978
1460		-	federally chartered savings bank subject to regulation by the 979
1461		-	Federal Deposit Insurance Corporation. Actions under this 980
1462		-	subsection shall constitute activity under the insurance agent's 981
1463		-	license for purposes of ss. 626.611 and 626.621. 982
1464		-	(22)(a) As used in this subsection, the term: 983
1465		-	1. "Advisory affiliate" has the same meani ng as in the 984
1466		-	Glossary of Terms to Form ADV, the uniform application for 985
1467		-	investment adviser registration, 17 C.F.R. s. 279.1. 986
1468		-	2. "Exempt reporting adviser" has the same meaning as in 987
1469		-	the Glossary of Terms to Form ADV, the uniform application for 988
1470		-	investment adviser registration, 17 C.F.R. s. 279.1. 989
1471		-	3. "Private fund adviser" means an investment adviser who 990
1472		-	provides advice to solely one or more qualifying private funds. 991
1473		-	4. "Qualifying private fund" means: 992
1474		-	a. A private fund that meets the definition of t he term 993
1475		-	"qualifying private fund" in the Securities and Exchange 994
1476		-	Commission Rule 203(m) -1, 17 C.F.R. s. 275.203(m) -1; 995
1477		-	b. A private fund that meets the definition of the term 996
1478		-	"venture capital fund" in the Securities and Exchange Commission 997
1479		-	Rule 203(l)-1, 17 C.F.R. s. 275.203(l) -1; or 998
1480		-	c. A "venture capital operating company " as defined in 29 999
1481		-	C.F.R. s. 2510.3-101(d) adopted by the United States Department 1000
1482		-
1483		-	CS/CS/HB 253 2023
1484		-
1485		-
1486		-
1487		-	CODING: Words stricken are deletions; words underlined are additions.
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1490		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1491		-
1492		-
1493		-
1494		-	of Labor under the Employee Retirement Income Security Act of 1001
1495		-	1974. 1002
1496		-	5. "3(c)(1) fund" means a qualif ying private fund that is 1003
1497		-	eligible for the exclusion from the definition of the term 1004
1498		-	"investment company" under s. 3(c)(1) of the Investment Company 1005
1499		-	Act of 1940, 15 U.S.C. s. 80a -3(c)(1), as amended. 1006
1500		-	(b) Subject to the additional requirements of paragraph 1007
1501		-	(c), a private fund adviser is exempt from the registration 1008
1502		-	requirements of this section if the private fund adviser 1009
1503		-	satisfies the following conditions: 1010
1504		-	1. Neither the private fund adviser nor any of its 1011
1505		-	advisory affiliates are subject to an ev ent that would 1012
1506		-	disqualify an issuer under Securities and Exchange Commission 1013
1507		-	Rule 506(d)(1) of Regulation D, 17 C.F.R. s. 230.506(d)(1); and 1014
1508		-	2. The private fund adviser files with the office each 1015
1509		-	report and amendment thereto that an exempt reporting advi ser is 1016
1510		-	required to file with the Securities and Exchange Commission 1017
1511		-	pursuant to the Securities and Exchange Commission Rule 204 -4, 1018
1512		-	17 C.F.R. s. 275.204 -4. 1019
1513		-	(c) In order to qualify for the exemption from the 1020
1514		-	registration requirements of this section, a pri vate fund 1021
1515		-	adviser who advises at least one (3)(c)(1) fund that is not a 1022
1516		-	venture capital fund shall, in addition to satisfying the 1023
1517		-	conditions specified in subparagraphs (b)1. and 2., comply with 1024
1518		-	the following requirements: 1025
1519		-
1520		-	CS/CS/HB 253 2023
1521		-
1522		-
1523		-
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1527		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1528		-
1529		-
1530		-
1531		-	1. The private fund adviser shal l advise only those 1026
1532		-	3(c)(1) funds, other than venture capital funds, whose 1027
1533		-	outstanding securities, other than short -term paper, are 1028
1534		-	beneficially owned entirely by accredited investors; and 1029
1535		-	2. At the time of purchase, the private fund adviser shall 1030
1536		-	disclose the following in writing to each beneficial owner of a 1031
1537		-	3(c)(1) fund that is not a venture capital fund: 1032
1538		-	a. All services, if any, to be provided to individual 1033
1539		-	beneficial owners; 1034
1540		-	b. All duties, if any, the investment adviser owes to the 1035
1541		-	beneficial owners; and 1036
1542		-	c. Any other material information affecting the rights or 1037
1543		-	responsibilities of the beneficial owners. 1038
1544		-	(d) If a private fund adviser is registered with the 1039
1545		-	Securities and Exchange Commission, the adviser is not eligible 1040
1546		-	for the exemption from t he registration requirements of this 1041
1547		-	section and shall comply with the notice filing requirements 1042
1548		-	applicable to federal covered advisers in s. 517.1201. 1043
1549		-	(e) A person is exempt from the registration requirements 1044
1550		-	of this section if the person is employed b y or associated with 1045
1551		-	an investment adviser that is exempt from registration and does 1046
1552		-	not otherwise act as an associated person of an investment 1047
1553		-	adviser or federal covered adviser. 1048
1554		-	(f) The report filings and the amendments thereto 1049
1555		-	described in subparagrap h (b)2. shall be made electronically 1050
1556		-
1557		-	CS/CS/HB 253 2023
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1559		-
1560		-
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1564		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1565		-
1566		-
1567		-
1568		-	through the Investment Adviser Registration Depository of the 1051
1569		-	Financial Industry Regulatory Authority. A report is deemed 1052
1570		-	filed with the office when the report has been filed and 1053
1571		-	accepted by the depository on the office 's behalf. 1054
1572		-	Section 7. Section 517.1214, Florida Statutes, is created 1055
1573		-	to read: 1056
1574		-	517.1214 Continuing education requirements for associated 1057
1575		-	persons of investment advisers and federal covered advisers. — 1058
1576		-	(1) As used in this section, the term: 1059
1577		-	(a) "Approved continuing education content" means the 1060
1578		-	materials, written, oral, or otherwise, which have been approved 1061
1579		-	by NASAA or its designee and which make up the educational 1062
1580		-	program provided to an associated person under this section. 1063
1581		-	(b) "Credit" means a uni t designated by NASAA or its 1064
1582		-	designee as at least 50 minutes of educational instruction. 1065
1583		-	(c) "Home state" means the state in which an associated 1066
1584		-	person of an investment adviser or a federal covered adviser has 1067
1585		-	his or her principal office and place of bus iness. 1068
1586		-	(d) "NASAA" means the North American Securities 1069
1587		-	Administrators Association, Inc. 1070
1588		-	(e) "Reporting period" means one 12 -month period beginning 1071
1589		-	January 1 and ending December 31. An associated person's initial 1072
1590		-	reporting period with this state commenc es the first day of the 1073
1591		-	first full reporting period after the individual is registered 1074
1592		-	or required to be registered with this state. 1075
1593		-
1594		-	CS/CS/HB 253 2023
1595		-
1596		-
1597		-
1598		-	CODING: Words stricken are deletions; words underlined are additions.
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1601		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1602		-
1603		-
1604		-
1605		-	(2) By December 31, 2024, and each December 31 thereafter, 1076
1606		-	each associated person of an investment adviser or a federal 1077
1607		-	covered adviser shall complete the following continuing 1078
1608		-	education content requirements offered by a person that NASAA or 1079
1609		-	its designee has authorized to provide the continuing education 1080
1610		-	content required by this section: 1081
1611		-	(a) Six credits of approved continu ing education content 1082
1612		-	that addresses an associated person's ethical and regulatory 1083
1613		-	obligations, with at least 3 hours covering the topic of ethics; 1084
1614		-	and 1085
1615		-	(b) Six credits of approved continuing education content 1086
1616		-	that addresses an associated person's skills and knowledge 1087
1617		-	regarding financial products, investment features, and practices 1088
1618		-	in the investment advisory industry. 1089
1619		-	(3) An associated person of an investment adviser or 1090
1620		-	federal covered adviser who is also registered as an associated 1091
1621		-	person of a Financial Industry Regulatory Authority (FINRA) 1092
1622		-	member dealer and who complies with FINRA's continuing education 1093
1623		-	requirements is considered to be in compliance with this 1094
1624		-	section's products and practice requirement for each applicable 1095
1625		-	reporting period, provided that the FINRA continuing education 1096
1626		-	content is approved continuing education content. 1097
1627		-	(4) Credits of continuing education completed by an 1098
1628		-	associated person who was awarded and currently holds a 1099
1629		-	credential that qualifies for examination waiver by passing any 1100
1630		-
1631		-	CS/CS/HB 253 2023
1632		-
1633		-
1634		-
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1638		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1639		-
1640		-
1641		-
1642		-	tests as prescribed in s. 15(b)(7) of the Securities Exchange 1101
1643		-	Act of 1934, as amended, comply with paragraphs (2)(a) and (b), 1102
1644		-	provided all of the following conditions are met: 1103
1645		-	(a) The associated person completes the credits of 1104
1646		-	continuing education as a c ondition of maintaining the 1105
1647		-	credential for the relevant reporting period. 1106
1648		-	(b) The credits of continuing education completed during 1107
1649		-	the relevant reporting period by the associated person are 1108
1650		-	mandatory to maintain the credential. 1109
1651		-	(c) The continuing educa tion content provided by the 1110
1652		-	credentialing organization during the relevant reporting period 1111
1653		-	is approved continuing education content. 1112
1654		-	(5) Each associated person is responsible for ensuring 1113
1655		-	that the authorized provider reports the associated person's 1114
1656		-	completion of the applicable continuing education requirements. 1115
1657		-	(6) An associated person who completes credits of 1116
1658		-	continuing education in excess of the credits required for the 1117
1659		-	reporting period may not carry forward excess credits to a 1118
1660		-	subsequent reporting period. 1119
1661		-	(7) An associated person who fails to comply with this 1120
1662		-	section by the end of a reporting period shall renew as "CE 1121
1663		-	inactive" at the close of the calendar year in this state until 1122
1664		-	the associated person completes and reports all required 1123
1665		-	continuing education credits for all reporting periods as 1124
1666		-	required by this section. An associated person who is "CE 1125
1667		-
1668		-	CS/CS/HB 253 2023
1669		-
1670		-
1671		-
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1675		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1676		-
1677		-
1678		-
1679		-	inactive" at the close of the next calendar year is not eligible 1126
1680		-	for associated person registration or renewal of associated 1127
1681		-	person registration. 1128
1682		-	(8) An associated person registered or required to be 1129
1683		-	registered in this state who is registered as an associated 1130
1684		-	person of an investment adviser or federal covered adviser in 1131
1685		-	the individual's home state is considered to be in compliance 1132
1686		-	with this section if : 1133
1687		-	(a) The associated person's home state has a continuing 1134
1688		-	education requirement of at least 12 hours annually; and 1135
1689		-	(b) The associated person is in compliance with the home 1136
1690		-	state's associated person of an investment adviser or federal 1137
1691		-	covered adviser continuing education requirements. 1138
1692		-	(9) An associated person who was previously registered 1139
1693		-	under s. 517.12 and became unregistered must complete continuing 1140
1694		-	education for all reporting periods that occurred between the 1141
1695		-	time that the associated person became unregistered and when the 1142
1696		-	person became registered again under s. 517.12, unless the 1143
1697		-	associated person takes and passes the required examinations or 1144
1698		-	the examination requirements are waived in connection with the 1145
1699		-	subsequent application for registration. 1146
1700		-	Section 8. Section 517.1217, Florida Statutes, is amended 1147
1701		-	to read: 1148
1702		-	517.1217 Rules of conduct and prohibited business 1149
1703		-	practices for dealers and their associated persons and for 1150
1704		-
1705		-	CS/CS/HB 253 2023
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1712		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1713		-
1714		-
1715		-
1716		-	intermediaries.—The commission by rule may establish rules of 1151
1717		-	conduct and prohibited business practices for dealers and their 1152
1718		-	associated persons and for intermediaries . In adopting the 1153
1719		-	rules, the commission shall consider general industry standards 1154
1720		-	as expressed in the rules and regulations of the various federal 1155
1721		-	and self-regulatory agencies and regulatory associations, 1156
1722		-	including, but not limited to, the United States Securities and 1157
1723		-	Exchange Commission, the Financial Industry Regulatory 1158
1724		-	Authority, and the North American Securities Administrators 1159
1725		-	Association, Inc. 1160
1726		-	Section 9. Subsections (1), (4), and (5) of section 1161
1727		-	517.161, Florida Statutes, are amended to read: 1162
1728		-	517.161 Revocation, denial, or suspension of registration 1163
1729		-	of dealer, investment adviser, intermediary, or associated 1164
1730		-	person.— 1165
1731		-	(1) Registration under s. 517.12 may be de nied or any 1166
1732		-	registration granted may be revoked, restricted, or suspended by 1167
1733		-	the office if the office determines that such applicant or 1168
1734		-	registrant; any member, principal, or director of the applicant 1169
1735		-	or registrant or any person having a similar status or 1170
1736		-	performing similar functions; or any person directly or 1171
1737		-	indirectly controlling the applicant or registrant: 1172
1738		-	(a) Has violated any provision of this chapter or any rule 1173
1739		-	or order made under this chapter; 1174
1740		-	(b) Has made a material false statement in the appli cation 1175
1741		-
1742		-	CS/CS/HB 253 2023
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1749		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1750		-
1751		-
1752		-
1753		-	for registration; 1176
1754		-	(c) Has been guilty of a fraudulent act in connection with 1177
1755		-	rendering investment advice or in connection with any sale of 1178
1756		-	securities, has been or is engaged or is about to engage in 1179
1757		-	making fictitious or pretended sales or purchase s of any such 1180
1758		-	securities or in any practice involving the rendering of 1181
1759		-	investment advice or the sale of securities which is fraudulent 1182
1760		-	or in violation of the law; 1183
1761		-	(d) Has made a misrepresentation or false statement to, or 1184
1762		-	concealed any essential or mater ial fact from, any person in the 1185
1763		-	rendering of investment advice or the sale of a security to such 1186
1764		-	person; 1187
1765		-	(e) Has failed to account to persons interested for all 1188
1766		-	money and property received; 1189
1767		-	(f) Has not delivered, after a reasonable time, to persons 1190
1768		-	entitled thereto securities held or agreed to be delivered by 1191
1769		-	the dealer, broker, or investment adviser, as and when paid for, 1192
1770		-	and due to be delivered; 1193
1771		-	(g) Is rendering investment advice or selling or offering 1194
1772		-	for sale securities through any associated per son not registered 1195
1773		-	in compliance with the provisions of this chapter; 1196
1774		-	(h) Has demonstrated unworthiness to transact the business 1197
1775		-	of dealer, investment adviser, intermediary, or associated 1198
1776		-	person; 1199
1777		-	(i) Has exercised management or policy control over or 1200
1778		-
1779		-	CS/CS/HB 253 2023
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1786		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1787		-
1788		-
1789		-
1790		-	owned 10 percent or more of the securities of any dealer, 1201
1791		-	intermediary, or investment adviser that has been declared 1202
1792		-	bankrupt, or had a trustee appointed under the Securities 1203
1793		-	Investor Protection Act; or is, in the case of a dealer, 1204
1794		-	intermediary, or investme nt adviser, unable to pay its debts as 1205
1795		-	they become due in the usual course of business insolvent; 1206
1796		-	(i)(j) Has been convicted of, or has entered a plea of 1207
1797		-	guilty or nolo contendere to, regardless of whether adjudication 1208
1798		-	was withheld, a crime against the la ws of this state or any 1209
1799		-	other state or of the United States or of any other country or 1210
1800		-	government which relates to registration as a dealer, investment 1211
1801		-	adviser, issuer of securities, intermediary, or associated 1212
1802		-	person; which relates to the application for such registration; 1213
1803		-	or which involves moral turpitude or fraudulent or dishonest 1214
1804		-	dealing; 1215
1805		-	(j)(k) Has had a final judgment entered against her or him 1216
1806		-	in a civil action upon grounds of fraud, embezzlement, 1217
1807		-	misrepresentation, or deceit; 1218
1808		-	(l) Is of bad busin ess repute; 1219
1809		-	(k)(m) Has been the subject of any decision, finding, 1220
1810		-	injunction, suspension, prohibition, revocation, denial, 1221
1811		-	judgment, or administrative order by any court of competent 1222
1812		-	jurisdiction, administrative law judge, or by any state or 1223
1813		-	federal agency, national securities, commodities, or option 1224
1814		-	exchange, or national securities, commodities, or option 1225
1815		-
1816		-	CS/CS/HB 253 2023
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1823		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1824		-
1825		-
1826		-
1827		-	association, involving a violation of any federal or state 1226
1828		-	securities or commodities law or any rule or regulation 1227
1829		-	promulgated thereunder, or any rule or regulation of any 1228
1830		-	national securities, commodities, or options exchange or 1229
1831		-	national securities, commodities, or options association, or has 1230
1832		-	been the subject of any injunction or adverse administrative 1231
1833		-	order by a state or federal agency regulating bankin g, 1232
1834		-	insurance, finance or small loan companies , real estate, 1233
1835		-	mortgage brokers or lenders, money transmitters, or other 1234
1836		-	related or similar industries. For purposes of this subsection, 1235
1837		-	the office may not deny registration to any applicant who has 1236
1838		-	been continuously registered with the office for 5 years after 1237
1839		-	the date of entry of such decision, finding, injunction, 1238
1840		-	suspension, prohibition, revocation, denial, judgment, or 1239
1841		-	administrative order provided such decision, finding, 1240
1842		-	injunction, suspension, prohibition, revocation, denial, 1241
1843		-	judgment, or administrative order has been timely reported to 1242
1844		-	the office pursuant to the commission's rules; or 1243
1845		-	(l)(n) Made payment to the office for a registration with 1244
1846		-	a check or electronic transmission of funds that is dishonored 1245
1847		-	by the applicant's or registrant's financial institution ; 1246
1848		-	(m) Failed to pay and fully satisfy any final judgment or 1247
1849		-	arbitration award resulting from an investment -related, client- 1248
1850		-	or customer-initiated arbitration or court proceeding, unless 1249
1851		-	alternative payment arrangements are agreed to in writing 1250
1852		-
1853		-	CS/CS/HB 253 2023
1854		-
1855		-
1856		-
1857		-	CODING: Words stricken are deletions; words underlined are additions.
1858		-	hb0253-02-c2
1859		-	Page 51 of 71
1860		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1861		-
1862		-
1863		-
1864		-	between the client or customer and the investment adviser, 1251
1865		-	dealer, or associated person and the investment adviser, dealer, 1252
1866		-	or associated person complies with the terms of the alternative 1253
1867		-	payment arrangement; 1254
1868		-	(n) Attempted to avoid payment of any final judgment or 1255
1869		-	arbitration award resulting from an investment -related, client- 1256
1870		-	or customer-initiated arbitration or court proceeding, unless 1257
1871		-	alternative payment arrangements are agreed to in writing 1258
1872		-	between the client or customer and the investment adviser, 1259
1873		-	dealer, or associated person and the investment adviser, dealer, 1260
1874		-	or associated person complies with the terms of the alternative 1261
1875		-	payment arrangements; or 1262
1876		-	(o) Failed to pay and fully satisfy any fine, civil 1263
1877		-	penalty, order of restitution, order of disgorgement, or similar 1264
1878		-	monetary payment obligation imposed upon the investment adviser, 1265
1879		-	dealer, or associated person by the Securities and Exchange 1266
1880		-	Commission, the securities regulator or other financial services 1267
1881		-	regulator of any state or province, or any securities industry 1268
1882		-	self-regulatory organization . 1269
1883		-	(4) It shall be sufficient cause for denial of an 1270
1884		-	application or revocation of registration, in the case of a 1271
1885		-	partnership, corporation, limited liability company, or 1272
1886		-	unincorporated association, if any member of the partnership , 1273
1887		-	any manager or managing member of the limited liability company, 1274
1888		-	or any officer, director, or ultimate equitable owner of the 1275
1889		-
1890		-	CS/CS/HB 253 2023
1891		-
1892		-
1893		-
1894		-	CODING: Words stricken are deletions; words underlined are additions.
1895		-	hb0253-02-c2
1896		-	Page 52 of 71
1897		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1898		-
1899		-
1900		-
1901		-	corporation or association has committed any act or omission 1276
1902		-	which would be cause for denying, revoking, restricting, or 1277
1903		-	suspending the registration of an individual dealer, investment 1278
1904		-	adviser, intermediary, or associated person. As used in this 1279
1905		-	subsection, the term "ultimate equitable owner" means a natural 1280
1906		-	person who directly or indirectly owns or controls an ownership 1281
1907		-	interest in the corporation, partnership, association, or other 1282
1908		-	legal entity however organized, regardless of whether such 1283
1909		-	natural person owns or controls such ownership interest through 1284
1910		-	one or more proxies, powers of attorney, nominees, corporations, 1285
1911		-	associations, partnerships, trusts, joint stock companies, or 1286
1912		-	other entities or devices, or any combination thereof. 1287
1913		-	(5) The office may deny any request to terminate or 1288
1914		-	withdraw any application or registration if the office believes 1289
1915		-	that an act that which would be a ground for denial, suspension, 1290
1916		-	restriction, or revocation under this chapter has been 1291
1917		-	committed. 1292
1918		-	Section 10. Section 517.181, Florida Statutes, is 1293
1919		-	repealed. 1294
1920		-	Section 11. Paragraph (a) of subsection (4) of section 1295
1921		-	517.201, Florida Statutes, is amended to read: 1296
1922		-	517.201 Investigations; examinations; subpoenas; hearings; 1297
1923		-	witnesses.— 1298
1924		-	(4)(a) In the event of substantial noncompliance with a 1299
1925		-	subpoena or subpoena duces tecum issued or caused to be issued 1300
1926		-
1927		-	CS/CS/HB 253 2023
1928		-
1929		-
1930		-
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1932		-	hb0253-02-c2
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1934		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1935		-
1936		-
1937		-
1938		-	by the office pursuant to this section, the office may petition 1301
1939		-	the circuit court of the county in which the person subpoenaed 1302
1940		-	resides or has its principal place of business for an order 1303
1941		-	requiring the subpoenaed person to appear and testify and to 1304
1942		-	produce such books, records, and documents as are specified in 1305
1943		-	such subpoena duces tecum. The court may grant injunctive relief 1306
1944		-	restraining the issuance, sale or offer for sale, purchase or 1307
1945		-	offer to purchase, promotion, negotiation, advertisement, or 1308
1946		-	distribution in or from offices in this state of securities or 1309
1947		-	investments in or from this state by the noncompliant a person 1310
1948		-	or its agent, employee, broker, partner, officer, director, 1311
1949		-	manager, managing member, equity holder, or any person directly 1312
1950		-	or indirectly controlling the noncompliant person stockholder 1313
1951		-	thereof, and may grant such other relief, including, but not 1314
1952		-	limited to, the restraint, by in junction or appointment of a 1315
1953		-	receiver, of any transfer, pledge, assignment, or other 1316
1954		-	disposition of such person's assets or any concealment, 1317
1955		-	alteration, destruction, or other disposition of subpoenaed 1318
1956		-	books, records, or documents, as the court deems approp riate, 1319
1957		-	until such person has fully complied with such subpoena or 1320
1958		-	subpoena duces tecum and the office has completed its 1321
1959		-	investigation or examination. The office is entitled to the 1322
1960		-	summary procedure provided in s. 51.011, and the court shall 1323
1961		-	advance the cause on its calendar. Costs incurred by the office 1324
1962		-	to obtain an order granting, in whole or in part, such petition 1325
1963		-
1964		-	CS/CS/HB 253 2023
1965		-
1966		-
1967		-
1968		-	CODING: Words stricken are deletions; words underlined are additions.
1969		-	hb0253-02-c2
1970		-	Page 54 of 71
1971		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1972		-
1973		-
1974		-
1975		-	for enforcement of a subpoena or subpoena duces tecum shall be 1326
1976		-	taxed against the subpoenaed person, and failure to comply with 1327
1977		-	such order shall be a contempt of court. 1328
1978		-	Section 12. Paragraph (d) of subsection (3) of section 1329
1979		-	921.0022, Florida Statutes, is amended to read: 1330
1980		-	921.0022 Criminal Punishment Code; offense severity 1331
1981		-	ranking chart.— 1332
1982		-	(3) OFFENSE SEVERITY RANKING CHART 1333
1983		-	(d) LEVEL 4 1334
1984		-	1335
	54	+	technical changes; creating s. 517.1214, F.S.; 29
	55	+	defining terms; specifying continuing education 30
	56	+	requirements for associated persons of investment 31
	57	+	advisers and federal covered advisers; prov iding that 32
	58	+	certain education credits satisfy such requirements if 33
	59	+	certain conditions are met; prohibiting associated 34
	60	+	persons from carrying forward credits to subsequent 35
	61	+	reporting periods; specifying a restriction on 36
	62	+	associated persons who fail to meet such requirements; 37
	63	+	specifying requirements for certain previously 38
	64	+	registered associated persons; amending s. 517.1217, 39
	65	+	F.S.; authorizing the commission to establish rules of 40
	66	+	conduct and prohibited business practices for 41
	67	+	intermediaries; amending s. 517.161, F.S .; revising 42
	68	+	grounds on which the office may deny, revoke, 43
	69	+	restrict, or suspend registrations of dealers, 44
	70	+	investment advisers, intermediaries, and associated 45
	71	+	persons; providing causes for denial of applications 46
	72	+	or revocation of registrations of certain enti ties and 47
	73	+	persons under certain circumstances; repealing s. 48
	74	+	517.181, F.S., relating to escrow agreements; amending 49
	75	+	s. 517.201, F.S.; conforming a provision to changes 50
	76	+
	77	+	CS/HB 253 2023
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	79	+
	80	+
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	82	+	hb0253-01-c1
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	84	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	85	+
	86	+
	87	+
	88	+	made by the act; amending s. 921.0022, F.S.; revising 51
	89	+	applicability of a criminal penalty for certain 52
	90	+	registration violations; amending s. 517.1215, F.S.; 53
	91	+	making technical changes; amending ss. 517.061, 54
	92	+	517.0611, 517.075, 517.131, 517.211, 517.315, 55
	93	+	626.9911, and 744.351, F.S.; conforming cross -56
	94	+	references and making technical changes; amending s . 57
	95	+	517.1205, F.S.; revising legislative intent; providing 58
	96	+	an effective date. 59
	97	+	60
	98	+	Be It Enacted by the Legislature of the State of Florida: 61
	99	+	62
	100	+	Section 1. Section 517.021, Florida Statutes, is reordered 63
	101	+	and amended to read: 64
	102	+	517.021 Definitions. —When used in this chapter, unless the 65
	103	+	context otherwise indicates, the following terms have the 66
	104	+	following respective meanings: 67
	105	+	(1) "Accredited investor" shall be defined by rule of the 68
	106	+	commission in accordance with the Securities and Exchange 69
	107	+	Commission Rule 501, 17 C.F.R. s. 230.501. 70
	108	+	(2) "Affiliate" means a person that directly, or 71
	109	+	indirectly through one or more intermediaries, controls, is 72
	110	+	controlled by, or is under common control with an applicant or 73
	111	+	registrant. 74
	112	+	(3)(2) "Associated person" means: 75
	113	+
	114	+	CS/HB 253 2023
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	116	+
	117	+
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	121	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	122	+
	123	+
	124	+
	125	+	(a)1. With respect to a dealer , a natural person who is 76
	126	+	employed, appointed, or authorized by a dealer and who 77
	127	+	represents the dealer in effecting or attempting to effect 78
	128	+	purchases or sales of securities. 79
	129	+	2. The term does not include the following: 80
	130	+	a. A dealer. 81
	131	+	b. A partner, officer, or director of a dealer or a person 82
	132	+	having a similar status or performing similar functions as a 83
	133	+	dealer, unless such person is specified in subparagraph 1. 84
	134	+	c. A dealer's employee whose function is only clerical or 85
	135	+	ministerial. 86
	136	+	d. A person whose transactions in this state are limited 87
	137	+	to those transactions described in s. 15(i)(3) of the Securities 88
	138	+	Exchange Act of 1934, as amended. 89
	139	+	(b)1. With respect to an investment adviser, a natural 90
	140	+	person, including, but not limited to, a pa rtner, officer, 91
	141	+	director, or branch manager, or a person occupying a similar 92
	142	+	status or performing similar functions, who: 93
	143	+	a. Is employed by or associated with, or is subject to the 94
	144	+	supervision and control of, an investment adviser registered or 95
	145	+	required to be registered under this chapter; and 96
	146	+	b. Does any of the following: 97
	147	+	(I) Makes any recommendation or otherwise gives investment 98
	148	+	advice regarding securities. 99
	149	+	(II) Manages accounts or portfolios of clients. 100
	150	+
	151	+	CS/HB 253 2023
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	153	+
	154	+
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	158	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	159	+
	160	+
	161	+
	162	+	(III) Determines which recommendation or advice regarding 101
	163	+	securities should be given. 102
	164	+	(IV) Receives compensation to solicit, offer, or negotiate 103
	165	+	for the sale of investment advisory services. 104
	166	+	(V) Supervises employees who perform a function under this 105
	167	+	sub-subparagraph. 106
	168	+	2. The term does not in clude the following: 107
	169	+	a. An investment adviser. 108
	170	+	b. An employee whose function is only clerical or 109
	171	+	ministerial or investment adviser, any of the following: 110
	172	+	1. Any partner, officer, director, or branch manager of a 111
	173	+	dealer or investment adviser or any pe rson occupying a similar 112
	174	+	status or performing similar functions; 113
	175	+	2. Any natural person directly or indirectly controlling 114
	176	+	or controlled by such dealer or investment adviser, other than 115
	177	+	an employee whose function is only clerical or ministerial; or 116
	178	+	3. Any natural person, other than a dealer, employed, 117
	179	+	appointed, or authorized by a dealer, investment adviser, or 118
	180	+	issuer to sell securities in any manner or act as an investment 119
	181	+	adviser as defined in this section . 120
	182	+	121
	183	+	The partners of a partnership and the execut ive officers of a 122
	184	+	corporation or other association registered as a dealer, and any 123
	185	+	person whose transactions in this state are limited to those 124
	186	+	transactions described in s. 15(h)(2) of the Securities Exchange 125
	187	+
	188	+	CS/HB 253 2023
	189	+
	190	+
	191	+
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	193	+	hb0253-01-c1
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	195	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	196	+
	197	+
	198	+
	199	+	Act of 1934, are not "associated persons" withi n the meaning of 126
	200	+	this definition. 127
	201	+	(c)(b) With respect to a federal covered adviser, a 128
	202	+	natural any person who is an investment adviser representative 129
	203	+	and who has a place of business in this state, as such terms are 130
	204	+	defined in Rule 203A -3 of the Securities and Exchange Commission 131
	205	+	adopted under the Investment Advisers Act of 1940 , as amended. 132
	206	+	(4)(3) "Boiler room" means an enterprise in which two or 133
	207	+	more persons engage in telephone communications with members of 134
	208	+	the public using two or more telephones at on e location, or at 135
	209	+	more than one location in a common scheme or enterprise. 136
	210	+	(5)(4) "Branch office" means any location in this state of 137
	211	+	a dealer or investment adviser at which one or more associated 138
	212	+	persons regularly conduct the business of rendering inves tment 139
	213	+	advice or effecting any transactions in, or inducing or 140
	214	+	attempting to induce the purchase or sale of, any security or 141
	215	+	any location that is held out as such. The commission may adopt 142
	216	+	by rule exceptions to this definition for dealers in order to 143
	217	+	maintain consistency with the definition of a branch office used 144
	218	+	by self-regulatory organizations authorized by the Securities 145
	219	+	and Exchange Commission, including, but not limited to, the 146
	220	+	Financial Industry Regulatory Authority. The commission may 147
	221	+	adopt by rule exceptions to this definition for investment 148
	222	+	advisers. 149
	223	+	(6)(7) "Commission" means the Financial Services 150
	224	+
	225	+	CS/HB 253 2023
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	227	+
	228	+
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	232	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	233	+
	234	+
	235	+
	236	+	Commission. 151
	237	+	(7)(5) "Control," including the terms "controlling," 152
	238	+	"controlled by," and "under common control with," means the 153
	239	+	possession, directly or indirectly, of the power to direct or 154
	240	+	cause the direction of the management or policies of a person, 155
	241	+	whether through the ownership of voting securities, by contract, 156
	242	+	or otherwise. 157
	243	+	(8)(6)(a) "Dealer" includes, unless otherwise specified, a 158
	244	+	person, other than an associated person of a dealer, that 159
	245	+	engages, for all or part of the person's time, directly or 160
	246	+	indirectly, as agent or principal in the business of offering, 161
	247	+	buying, selling, or otherwise dealing or trading in securities 162
	248	+	issued by another person any of the following: 163
	249	+	1. Any person, other than an associated person registered 164
	250	+	under this chapter, who engages, either for all or part of her 165
	251	+	or his time, directly or indirectly, as broker or principal in 166
	252	+	the business of offering, buying, selling, or othe rwise dealing 167
	253	+	or trading in securities issued by another person . 168
	254	+	2. Any issuer who through persons directly compensated or 169
	255	+	controlled by the issuer engages, either for all or part of her 170
	256	+	or his time, directly or indirectly, in the business of offering 171
	257	+	or selling securities which are issued or are proposed to be 172
	258	+	issued by the issuer. 173
	259	+	(b) The term "dealer" does not include the following: 174
	260	+	(a) A licensed practicing attorney who renders or performs 175
	261	+
	262	+	CS/HB 253 2023
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	264	+
	265	+
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	269	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	270	+
	271	+
	272	+
	273	+	any such services in connection with the regular practice of the 176
	274	+	attorney's profession. 177
	275	+	(b) A bank authorized to do business in this state, except 178
	276	+	nonbank subsidiaries of a bank. 179
	277	+	(c) A trust company having trust powers that it is 180
	278	+	authorized to exercise in this state, which renders or performs 181
	279	+	services in a fiduciary capacity incidental to the exercise of 182
	280	+	its trust powers. 183
	281	+	(d) A wholesaler selling exclusively to dealers. 184
	282	+	(e) A person buying and selling for the person's own 185
	283	+	account exclusively through a registered dealer or stock 186
	284	+	exchange. 187
	285	+	(f) An issuer. 188
	286	+	(g) A natural person representing an issuer in the 189
	287	+	purchase, sale, or distribution of the issuer's own securities 190
	288	+	if such person: 191
	289	+	1. Is an officer, a director, a limited liability company 192
	290	+	manager or managing member, or a bona fide employee of the 193
	291	+	issuer; 194
	292	+	2. Has not participated in the distribution or sale of 195
	293	+	securities for any issuer for which such person was, within the 196
	294	+	preceding 12 months, an officer, a director, a limited liability 197
	295	+	company manager or managing member, or a bona fide employee; 198
	296	+	3. Primarily performs, or is intended to perform at the 199
	297	+	end of the distribution, substantial duties for, or on behalf 200
	298	+
	299	+	CS/HB 253 2023
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	302	+
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	306	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	307	+
	308	+
	309	+
	310	+	of, the issuer other than in connection with transactions in 201
	311	+	securities; and 202
	312	+	4. Does not receive a commission, compensation, or other 203
	313	+	consideration for the completed sale of the issuer's securities 204
	314	+	apart from the compensation received for regular duties to the 205
	315	+	issuer. 206
	316	+	1. Any licensed practicing attorney who renders or 207
	317	+	performs any of such services in connection with the regular 208
	318	+	practice of her or his profession; 209
	319	+	2. Any bank authorized to do business in this state, 210
	320	+	except nonbank subsidiaries of a bank; 211
	321	+	3. Any trust company having trust powers which it is 212
	322	+	authorized to exercise in this state, which renders or performs 213
	323	+	services in a fiduciar y capacity incidental to the exercise of 214
	324	+	its trust powers; 215
	325	+	4. Any wholesaler selling exclusively to dealers; 216
	326	+	5. Any person buying and selling for her or his own 217
	327	+	account exclusively through a registered dealer or stock 218
	328	+	exchange; or 219
	329	+	6. Pursuant to s. 5 17.061(11), any person associated with 220
	330	+	an issuer of securities if such person is a bona fide employee 221
	331	+	of the issuer who has not participated in the distribution or 222
	332	+	sale of any securities within the preceding 12 months and who 223
	333	+	primarily performs, or is inte nded to perform at the end of the 224
	334	+	distribution, substantial duties for, or on behalf of, the 225
	335	+
	336	+	CS/HB 253 2023
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	343	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	344	+
	345	+
	346	+
	347	+	issuer other than in connection with transactions in securities. 226
	348	+	(9) "Federal covered adviser" means a person that who is 227
	349	+	registered or required to be registered under s. 203 of the 228
	350	+	Investment Advisers Act of 1940 , as amended. The term "federal 229
	351	+	covered adviser" does not include any person that who is 230
	352	+	excluded from the definition of investment adviser under 231
	353	+	subparagraphs (14)(b)1. -8. 232
	354	+	(10) "Federal covered securit y" means a any security that 233
	355	+	is a covered security under s. 18(b) of the Securities Act of 234
	356	+	1933, as amended, or rules and regulations adopted thereunder. 235
	357	+	(11) "Guarantor" means a person that who agrees in 236
	358	+	writing, or that who holds itself out to the publ ic as agreeing, 237
	359	+	to pay the indebtedness of another when due, including, without 238
	360	+	limitation, payments of principal and interest on a bond, 239
	361	+	debenture, note, or other evidence of indebtedness, without 240
	362	+	resort by the holder to any other obligor, whether or not such 241
	363	+	writing expressly states that the person signing is signing as a 242
	364	+	guarantor. The obligation of a guarantor hereunder shall be a 243
	365	+	continuing, absolute, and unconditional guaranty of payment, 244
	366	+	without regard to the validity, regularity, or enforceability o f 245
	367	+	the underlying indebtedness. 246
	368	+	(12) "Guaranty" means an agreement in a writing in which 247
	369	+	one party either agrees, or holds itself out to the public as 248
	370	+	agreeing, to pay the indebtedness of another when due, 249
	371	+	including, without limitation, payments of princi pal and 250
	372	+
	373	+	CS/HB 253 2023
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	378	+	hb0253-01-c1
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	380	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	381	+
	382	+
	383	+
	384	+	interest on a bond, debenture, note, or other evidence of 251
	385	+	indebtedness, without resort by the holder to any other obligor, 252
	386	+	whether or not such writing expressly states that the person 253
	387	+	signing is signing as a guarantor. An agreement that is not 254
	388	+	specifically denominated as a guaranty shall nevertheless 255
	389	+	constitute a guaranty if the holder of the underlying 256
	390	+	indebtedness or the holder's her or his representative or 257
	391	+	trustee has the right to sue to enforce the guarantor's 258
	392	+	obligations under the guaranty. Wo rds of guaranty or equivalent 259
	393	+	words that which otherwise do not specify guaranty of payment 260
	394	+	create a presumption that payment, rather than collection, is 261
	395	+	guaranteed by the guarantor. Any guaranty in writing is 262
	396	+	enforceable notwithstanding any statute of fra uds. 263
	397	+	(13) "Intermediary" means a natural person residing in 264
	398	+	this the state or a corporation, trust, partnership, limited 265
	399	+	liability company, association, or other legal entity registered 266
	400	+	with the Secretary of State to do business in this the state, 267
	401	+	which facilitates through its website the offer or sale of 268
	402	+	securities of an issuer with a principal place of business in 269
	403	+	this state under s. 517.0611. 270
	404	+	(14)(a) "Investment adviser" means a includes any person, 271
	405	+	other than an associated person of an investment adviser or a 272
	406	+	federal covered adviser, that who receives compensation, 273
	407	+	directly or indirectly, and engages for all or part of the 274
	408	+	person's her or his time, directly or indirectly, or through 275
	409	+
	410	+	CS/HB 253 2023
	411	+
	412	+
	413	+
	414	+	CODING: Words stricken are deletions; words underlined are additions.
	415	+	hb0253-01-c1
	416	+	Page 12 of 68
	417	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	418	+
	419	+
	420	+
	421	+	publications or writings, in the business of advising others as 276
	422	+	to the value of securities or as to the advisability of 277
	423	+	investments in, purchasing of, or selling of securities , except 278
	424	+	a dealer whose performance of these services is solely 279
	425	+	incidental to the conduct of her or his business as a dealer and 280
	426	+	who receives no special compensation for such services . 281
	427	+	(b) The term "investment adviser" does not include the 282
	428	+	following: 283
	429	+	1. A dealer or associated person of a dealer whose 284
	430	+	performance of services in paragraph (a) is solely incidental to 285
	431	+	the conduct of the d ealer's or associated person's business as a 286
	432	+	dealer and who does not receive special compensation for those 287
	433	+	services. 288
	434	+	2. A Any licensed practicing attorney or certified public 289
	435	+	accountant whose performance of such services is solely 290
	436	+	incidental to the prac tice of the attorney's or accountant's her 291
	437	+	or his profession.; 292
	438	+	2. Any licensed certified public accountant whose 293
	439	+	performance of such services is solely incidental to the 294
	440	+	practice of her or his profession; 295
	441	+	3. A Any bank authorized to do business in this state.; 296
	442	+	4. A Any bank holding company as defined in the Bank 297
	443	+	Holding Company Act of 1956, as amended, authorized to do 298
	444	+	business in this state .; 299
	445	+	5. A Any trust company having trust powers , as defined in 300
	446	+
	447	+	CS/HB 253 2023
	448	+
	449	+
	450	+
	451	+	CODING: Words stricken are deletions; words underlined are additions.
	452	+	hb0253-01-c1
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	454	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	455	+
	456	+
	457	+
	458	+	s. 658.12, which it is authorized to exercise in this the state, 301
	459	+	which trust company renders or performs investment advisory 302
	460	+	services in a fiduciary capacity incidental to the exercise of 303
	461	+	its trust powers.; 304
	462	+	6. A Any person that who renders investment advice 305
	463	+	exclusively to insurance or investment compan ies.; 306
	464	+	7. A Any person that who does not hold itself herself or 307
	465	+	himself out to the general public as an investment adviser and 308
	466	+	has no more than 15 clients within 12 consecutive months in this 309
	467	+	state.; 310
	468	+	8. A Any person whose transactions in this state are 311
	469	+	limited to those transactions described in s. 222(d) of the 312
	470	+	Investment Advisers Act of 1940 , as amended. Those clients 313
	471	+	listed in subparagraph 6. may not be included when determining 314
	472	+	the number of clients of an i nvestment adviser for purposes of 315
	473	+	s. 222(d) of the Investment Advisers Act of 1940 , as amended.; 316
	474	+	or 317
	475	+	9. A federal covered adviser. 318
	476	+	(15) "Issuer" means a any person that who proposes to 319
	477	+	issue, has issued, or shall hereafter issue any security. A Any 320
	478	+	person that who acts as a promoter for and on behalf of a 321
	479	+	corporation, trust, or unincorporated association or 322
	480	+	partnership, limited liability company, association, or other 323
	481	+	legal entity of any kind to be formed shall be deemed an issuer. 324
	482	+	(16) "Offer to sell," "offer for sale," or "offer" means 325
	483	+
	484	+	CS/HB 253 2023
	485	+
	486	+
	487	+
	488	+	CODING: Words stricken are deletions; words underlined are additions.
	489	+	hb0253-01-c1
	490	+	Page 14 of 68
	491	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	492	+
	493	+
	494	+
	495	+	an any attempt or offer to dispose of, or solicitation of an 326
	496	+	offer to buy, a security or interest in a security, or an 327
	497	+	investment or interest in an investment, for value. 328
	498	+	(17)(8) "Office" means the Office of Financial Regulation 329
	499	+	of the commission. 330
	500	+	(18)(17) "Predecessor" means a person whose the major 331
	501	+	portion of whose assets has have been acquired directly or 332
	502	+	indirectly by an issuer. 333
	503	+	(19)(18) "Principal" means an executive officer of a 334
	504	+	corporation, partner of a partnership, sole proprietor of a sole 335
	505	+	proprietorship, trustee of a trust, or any other person with 336
	506	+	similar supervisory functions with respect to any organization, 337
	507	+	whether incorporated or unincorporated. 338
	508	+	(20)(19) "Promoter" includes the following: 339
	509	+	(a) A Any person that who, acting alone or in conjunction 340
	510	+	with one or more other persons, directly or indirectly takes the 341
	511	+	initiative in founding and organizing the business or enterprise 342
	512	+	of an issuer. 343
	513	+	(b) A Any person that who, in connection with the founding 344
	514	+	or organizing of the business or enterprise of an issuer, 345
	515	+	directly or indirectly receives in consideration of services or 346
	516	+	property, or both services and property, 10 percent or more of 347
	517	+	any class of securities of the issuer or 10 percent or more of 348
	518	+	the proceeds from the sale of any class of securities. However, 349
	519	+	a person that who receives such securities or proceeds either 350
	520	+
	521	+	CS/HB 253 2023
	522	+
	523	+
	524	+
	525	+	CODING: Words stricken are deletions; words underlined are additions.
	526	+	hb0253-01-c1
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	528	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	529	+
	530	+
	531	+
	532	+	solely as underwriting commissions or solely in connection with 351
	533	+	property shall not be deemed a promoter if such person does not 352
	534	+	otherwise take part in founding and organizing the enterprise. 353
	535	+	(21)(20) "Qualified institutional buyer" means a any 354
	536	+	qualified institutional buyer, as defined in United States 355
	537	+	Securities and Exchange Commission Rule 144A, 17 C.F.R. s. 356
	538	+	230.144A(a), under the Securities Act of 1933, as amended, or 357
	539	+	any foreign buyer that satisfies the minimum financial 358
	540	+	requirements set forth in such rule. 359
	541	+	(22)(21) "Sale" or "sell" means a any contract of sale or 360
	542	+	disposition of an any investment, security, or interest in a 361
	543	+	security, for value. With respect to a security or interest in a 362
	544	+	security, the term defined in this subsection does not include 363
	545	+	preliminary negotiations or agreements between an issuer or any 364
	546	+	person on whose behalf a n offering is to be made and any 365
	547	+	underwriter or among underwriters who are or are to be in 366
	548	+	privity of contract with an issuer. Any security given or 367
	549	+	delivered with, or as a bonus on account of, any purchase of 368
	550	+	securities or any other thing shall be conclus ively presumed to 369
	551	+	constitute a part of the subject of such purchase and to have 370
	552	+	been offered and sold for value. Every sale or offer of a 371
	553	+	warrant or right to purchase or subscribe to another security of 372
	554	+	the same or another issuer, as well as every sale or offer of a 373
	555	+	security which gives the holder a present or future right or 374
	556	+	privilege to convert into another security or another issuer, is 375
	557	+
	558	+	CS/HB 253 2023
	559	+
	560	+
	561	+
	562	+	CODING: Words stricken are deletions; words underlined are additions.
	563	+	hb0253-01-c1
	564	+	Page 16 of 68
	565	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	566	+
	567	+
	568	+
	569	+	considered to include an offer of the other security. 376
	570	+	(23)(22) "Security" includes any of the following: 377
	571	+	(a) A note. 378
	572	+	(b) A stock. 379
	573	+	(c) A treasury stock. 380
	574	+	(d) A bond. 381
	575	+	(e) A debenture. 382
	576	+	(f) An evidence of indebtedness. 383
	577	+	(g) A certificate of deposit. 384
	578	+	(h) A certificate of deposit for a security. 385
	579	+	(i) A certificate of interest or participation. 386
	580	+	(j) A whiskey warehouse receipt or other commodity 387
	581	+	warehouse receipt. 388
	582	+	(k) A certificate of interest in a profit -sharing 389
	583	+	agreement or the right to participate therein. 390
	584	+	(l) A certificate of interest in an oil, gas, petroleum, 391
	585	+	mineral, or mining title or lease or the rig ht to participate 392
	586	+	therein. 393
	587	+	(m) A collateral trust certificate. 394
	588	+	(n) A reorganization certificate. 395
	589	+	(o) A preorganization subscription. 396
	590	+	(p) A Any transferable share. 397
	591	+	(q) An investment contract. 398
	592	+	(r) A beneficial interest in title to property, profi ts, 399
	593	+	or earnings. 400
	594	+
	595	+	CS/HB 253 2023
	596	+
	597	+
	598	+
	599	+	CODING: Words stricken are deletions; words underlined are additions.
	600	+	hb0253-01-c1
	601	+	Page 17 of 68
	602	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	603	+
	604	+
	605	+
	606	+	(s) An interest in or under a profit -sharing or 401
	607	+	participation agreement or scheme. 402
	608	+	(t) An Any option contract that which entitles the holder 403
	609	+	to purchase or sell a given amount of the underlying security at 404
	610	+	a fixed price within a specified period of time. 405
	611	+	(u) Any other instrument commonly known as a security, 406
	612	+	including an interim or temporary bond, debenture, note, or 407
	613	+	certificate. 408
	614	+	(v) A Any receipt for a security, or for subscription to a 409
	615	+	security, or a any right to subscribe to or purchase any 410
	616	+	security. 411
	617	+	(w) A viatical settlement investment. 412
	618	+	(24)(23) "Underwriter" means a person that who has 413
	619	+	purchased from an issuer o r an affiliate of an issuer with a 414
	620	+	view to, or offers or sells for an issuer or an affiliate of an 415
	621	+	issuer in connection with, the distribution of any security, or 416
	622	+	participates or has a direct or indirect participation in any 417
	623	+	such undertaking, or participat es or has a participation in the 418
	624	+	direct or indirect underwriting of any such undertaking; except 419
	625	+	that a person is shall be presumed not to be an underwriter with 420
	626	+	respect to any security which it she or he has owned 421
	627	+	beneficially for at least 1 year; and, fu rther, a dealer is 422
	628	+	shall not be considered an underwriter with respect to any 423
	629	+	securities which do not represent part of an unsold allotment to 424
	630	+	or subscription by the dealer as a participant in the 425
	631	+
	632	+	CS/HB 253 2023
	633	+
	634	+
	635	+
	636	+	CODING: Words stricken are deletions; words underlined are additions.
	637	+	hb0253-01-c1
	638	+	Page 18 of 68
	639	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	640	+
	641	+
	642	+
	643	+	distribution of such securities by the issuer or an affilia te of 426
	644	+	the issuer; and, further, in the case of securities acquired on 427
	645	+	the conversion of another security without payment of additional 428
	646	+	consideration, the length of time such securities have been 429
	647	+	beneficially owned by a person includes the period during whi ch 430
	648	+	the convertible security was beneficially owned and the period 431
	649	+	during which the security acquired on conversion has been 432
	650	+	beneficially owned. 433
	651	+	(25)(24) "Viatical settlement investment" means an 434
	652	+	agreement for the purchase, sale, assignment, transfer, dev ise, 435
	653	+	or bequest of all or any portion of a legal or equitable 436
	654	+	interest in a viaticated policy as defined in chapter 626. 437
	655	+	Section 2. Paragraph (d) of subsection (3) of section 438
	656	+	517.072, Florida Statutes, is amended, and subsection (4) is 439
	657	+	added to that section, to read: 440
	658	+	517.072 Viatical settlement investments. — 441
	659	+	(3) The registration provisions of ss. 517.07 and 517.12 442
	660	+	do not apply to any of the following transactions in viatical 443
	661	+	settlement investments; however, such transactions in viatical 444
	662	+	settlement investments are subject to the provisions of ss. 445
	663	+	517.301, 517.311, and 517.312: 446
	664	+	(d) The transfer or assignment of a viaticated policy to a 447
	665	+	bank, trust company, savings institution, insurance company, 448
	666	+	dealer, investment company as defined in the Investment Company 449
	667	+	Act of 1940, as amended, pension or profit-sharing trust, or 450
	668	+
	669	+	CS/HB 253 2023
	670	+
	671	+
	672	+
	673	+	CODING: Words stricken are deletions; words underlined are additions.
	674	+	hb0253-01-c1
	675	+	Page 19 of 68
	676	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	677	+
	678	+
	679	+
	680	+	qualified institutional buyer as defined in United States 451
	681	+	Securities and Exchange Commission Rule 144A, 17 C.F.R. s. 452
	682	+	230.144A(a), or to an accredited investor as defined by Rule 501 453
	683	+	of Regulation D of the Securities Act Rules , provided such 454
	684	+	transfer or assignment is not for the direct or indirect 455
	685	+	promotion of any scheme or enterprise with the intent of 456
	686	+	violating or evading any provision of this chapter. 457
	687	+	(4) The commission may establish by rule requirements and 458
	688	+	standards for disclosures to purchasers of viatical settlement 459
	689	+	investments and recordkeeping requirements for sellers of 460
	690	+	viatical settlement investments. 461
	691	+	Section 3. Paragraphs (a), (g), and (n) of subsection (3) 462
	692	+	and subsections (6) and (8) of section 517.081, Florida 463
	693	+	Statutes, are amended to read: 464
	694	+	517.081 Registration procedure. — 465
	695	+	(3) The office may require the applicant to submit to the 466
	696	+	office the following information concerning the issuer and such 467
	697	+	other relevant informatio n as the office may in its judgment 468
	698	+	deem necessary to enable it to ascertain whether such securities 469
	699	+	shall be registered pursuant to the provisions of this section: 470
	700	+	(a) The names and addresses of : 471
	701	+	1. All the directors, trustees, and officers, if the 472
	702	+	issuer is be a corporation, association, or trust . 473
	703	+	2. All the managers or managing members, if the issuer is 474
	704	+	a limited liability company. 475
	705	+
	706	+	CS/HB 253 2023
	707	+
	708	+
	709	+
	710	+	CODING: Words stricken are deletions; words underlined are additions.
	711	+	hb0253-01-c1
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	713	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	714	+
	715	+
	716	+
	717	+	3. ; of All the partners, if the issuer is be a 476
	718	+	partnership. 477
	719	+	4. ; or of The issuer, if the issuer is a sole 478
	720	+	proprietorship or natural person be an individual. 479
	721	+	(g)1. A specimen copy of the securities certificate, if 480
	722	+	applicable, security and a copy of any circular, prospectus, 481
	723	+	advertisement, or other description of such securities. 482
	724	+	2. The commission shall adop t a form for a simplified 483
	725	+	offering circular to be used solely by corporations to register, 484
	726	+	under this section, securities of the corporation that are sold 485
	727	+	in offerings in which the aggregate offering price in any 486
	728	+	consecutive 12-month period does not exceed the amount provided 487
	729	+	in s. 3(b) of the Securities Act of 1933 , as amended. The 488
	730	+	following issuers shall not be eligible to submit a simplified 489
	731	+	offering circular adopted pursuant to this subparagraph: 490
	732	+	a. An issuer seeking to register securities for resale by 491
	733	+	persons other than the issuer. 492
	734	+	b. An issuer that who is subject to any of the 493
	735	+	disqualifications described in 17 C.F.R. s. 230.262, adopted 494
	736	+	pursuant to the Securities Act of 1933, as amended, or that who 495
	737	+	has been or is engaged or is about to engage in an activity that 496
	738	+	would be grounds for denial, revocation, or suspension under s. 497
	739	+	517.111. For purposes of this subparagraph, an issuer includes 498
	740	+	an issuer's director, officer, manager or managing member, or 499
	741	+	equity owner shareholder who owns at least 10 perc ent of the 500
	742	+
	743	+	CS/HB 253 2023
	744	+
	745	+
	746	+
	747	+	CODING: Words stricken are deletions; words underlined are additions.
	748	+	hb0253-01-c1
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	750	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	751	+
	752	+
	753	+
	754	+	ownership interests shares of the issuer, promoter, or selling 501
	755	+	agent of the securities to be offered or any officer, director, 502
	756	+	or partner of such selling agent. 503
	757	+	c. An issuer that who is a development-stage company that 504
	758	+	either has no specific b usiness plan or purpose or has indicated 505
	759	+	that its business plan is to merge with an unidentified company 506
	760	+	or companies. 507
	761	+	d. An issuer of offerings in which the specific business 508
	762	+	or properties cannot be described. 509
	763	+	e. Any issuer the office determines is in eligible because 510
	764	+	if the form does would not provide full and fair disclosure of 511
	765	+	material information for the type of offering to be registered 512
	766	+	by the issuer. 513
	767	+	f. Any issuer that corporation which has failed to provide 514
	768	+	the office the reports required for a previous offering 515
	769	+	registered pursuant to this subparagraph. 516
	770	+	517
	771	+	As a condition precedent to qualifying for use of the simplified 518
	772	+	offering circular, an issuer a corporation shall agree to 519
	773	+	provide the office with an annual financial report containing a 520
	774	+	balance sheet as of the end of the issuer's fiscal year and a 521
	775	+	statement of income for such year, prepared in accordance with 522
	776	+	United States generally accepted accounting principles and 523
	777	+	accompanied by an independent accountant's report. If the issuer 524
	778	+	has more than 100 security holders at the end of a fiscal year, 525
	779	+
	780	+	CS/HB 253 2023
	781	+
	782	+
	783	+
	784	+	CODING: Words stricken are deletions; words underlined are additions.
	785	+	hb0253-01-c1
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	787	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	788	+
	789	+
	790	+
	791	+	the financial statements must be audited. Annual financial 526
	792	+	reports must be filed with the office within 90 days after the 527
	793	+	close of the issuer's fiscal year for each of the first 5 years 528
	794	+	following the effect ive date of the registration. 529
	795	+	(n) If the issuer is a corporation, there shall be filed 530
	796	+	with the application a copy of its articles of incorporation 531
	797	+	with all amendments and of its existing bylaws, if not already 532
	798	+	on file in the office. If the issuer is a limited liability 533
	799	+	company, there shall be filed with the application a copy of the 534
	800	+	articles of organization with all the amendments and a copy of 535
	801	+	the company's operating agreement, if not already on file with 536
	802	+	the office. If the issuer is a trustee, there s hall be filed 537
	803	+	with the application a copy of all instruments by which the 538
	804	+	trust is created or declared and in which it is accepted and 539
	805	+	acknowledged. If the issuer is a partnership, unincorporated 540
	806	+	association, joint-stock company, or any other form of 541
	807	+	organization whatsoever, there shall be filed with the 542
	808	+	application a copy of its articles of partnership or association 543
	809	+	and all other papers pertaining to its organization, if not 544
	810	+	already on file in the office. 545
	811	+	(6) An issuer filing an application under this s ection 546
	812	+	shall, at the time of filing, pay the office a nonreturnable fee 547
	813	+	of $1,000 per application for each offering that exceeds the 548
	814	+	amount provided in s. 3(b) of the Securities Act of 1933, as 549
	815	+	amended, or $200 per application for each offering that does n ot 550
	816	+
	817	+	CS/HB 253 2023
	818	+
	819	+
	820	+
	821	+	CODING: Words stricken are deletions; words underlined are additions.
	822	+	hb0253-01-c1
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	824	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	825	+
	826	+
	827	+
	828	+	exceed the amount provided in s. 3(b) of the Securities Act of 551
	829	+	1933, as amended. 552
	830	+	(8) The office shall deem an application to register 553
	831	+	securities filed with the office abandoned if the issuer or any 554
	832	+	person acting on behalf of the issuer has failed to t imely 555
	833	+	complete an application specified by commission rule The 556
	834	+	commission may by rule establish requirements and standards for: 557
	835	+	(a) Disclosures to purchasers of viatical settlement 558
	836	+	investments. 559
	837	+	(b) Recordkeeping requirements for sellers of viatical 560
	838	+	settlement investments. 561
	839	+	Section 4. Section 517.082, Florida Statutes, is amended 562
	840	+	to read: 563
	841	+	517.082 Notification Registration by notification; federal 564
	842	+	registration statements .— 565
	843	+	(1) Except as provided in subsection (3), Securities 566
	844	+	offered or sold pursuan t to a registration statement filed under 567
	845	+	the Securities Act of 1933 , as amended, are shall be entitled to 568
	846	+	registration by notification in the manner provided in 569
	847	+	subsection (2), provided that before prior to the offer or sale 570
	848	+	the registration statement has become effective. 571
	849	+	(2) An application for registration by notification shall 572
	850	+	be filed with the office, shall contain the following 573
	851	+	information, and shall be accompanied by all of the following: 574
	852	+	(a) An application to sell executed by the issuer, any 575
	853	+
	854	+	CS/HB 253 2023
	855	+
	856	+
	857	+
	858	+	CODING: Words stricken are deletions; words underlined are additions.
	859	+	hb0253-01-c1
	860	+	Page 24 of 68
	861	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	862	+
	863	+
	864	+
	865	+	person on whose behalf the offering is made, a dealer registered 576
	866	+	under this chapter, or any duly authorized agent of any such 577
	867	+	person, setting forth the name and address of the applicant, the 578
	868	+	name and address of the issuer, and the title of the securities 579
	869	+	to be offered and sold .; 580
	870	+	(b) Copies of such documents filed with the Securities and 581
	871	+	Exchange Commission as the Financial Services Commission may by 582
	872	+	rule require.; 583
	873	+	(c) An irrevocable written consent to servic e as required 584
	874	+	by s. 517.101.; and 585
	875	+	(d) A nonreturnable fee of $1,000 per application. 586
	876	+	587
	877	+	A registration under this section becomes effective when the 588
	878	+	federal registration statement becomes effective or as of the 589
	879	+	date the application is filed with the office , whichever is 590
	880	+	later, provided that, in addition to the items listed in 591
	881	+	paragraphs (a)-(d), the office has received written notification 592
	882	+	of effective registration under the Securities Act of 1933 , as 593
	883	+	amended, or the Investment Company Act of 1940 , as amended, 594
	884	+	within 10 business days after from the date federal registration 595
	885	+	is granted. Failure to provide all the information required by 596
	886	+	this subsection to the office within 60 days after of the date 597
	887	+	the registration statement becomes effective with the Securit ies 598
	888	+	and Exchange Commission shall be a violation of this chapter. 599
	889	+	(3) Except for units of limited partnership interests or 600
	890	+
	891	+	CS/HB 253 2023
	892	+
	893	+
	894	+
	895	+	CODING: Words stricken are deletions; words underlined are additions.
	896	+	hb0253-01-c1
	897	+	Page 25 of 68
	898	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	899	+
	900	+
	901	+
	902	+	such other securities as the commission describes by rule as 601
	903	+	exempt from this subsection due to high investment quality, the 602
	904	+	provisions of this section may not be used to register 603
	905	+	securities if the offering price at the time of effectiveness 604
	906	+	with the Securities and Exchange Commission is $5 or less per 605
	907	+	share, unless such securities are listed or designated, or 606
	908	+	approved for listing or designation upon notice of issuance, on 607
	909	+	a stock exchange registered pursuant to the Securities Exchange 608
	910	+	Act of 1934, as amended, or on the National Association of 609
	911	+	Securities Dealers Automated Quotation (NASDAQ) System, or 610
	912	+	unless such securities are of the same issuer and of senior or 611
	913	+	substantially equal rank to securities so listed or designated. 612
	914	+	(4) In lieu of filing with the office the application, 613
	915	+	fees, and documents for registration required by subsection (2), 614
	916	+	the commission may establish, by rule, pr ocedures for depositing 615
	917	+	fees and filing documents by electronic means, provided such 616
	918	+	procedures provide the office with the information and data 617
	919	+	required by this section. 618
	920	+	(5) If the Securities and Exchange Commission has not 619
	921	+	declared effective the applic ant's federal registration 620
	922	+	statement within 180 days after the applicant's filing with the 621
	923	+	office of an application for registration by notification, the 622
	924	+	office must deem the application abandoned. 623
	925	+	Section 5. Section 517.111, Florida Statutes, is amend ed 624
	926	+	to read: 625
	927	+
	928	+	CS/HB 253 2023
	929	+
	930	+
	931	+
	932	+	CODING: Words stricken are deletions; words underlined are additions.
	933	+	hb0253-01-c1
	934	+	Page 26 of 68
	935	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	936	+
	937	+
	938	+
	939	+	517.111 Revocation or denial of registration of 626
	940	+	securities.— 627
	941	+	(1) The office may revoke or suspend the registration of 628
	942	+	any security, or may deny any application to register 629
	943	+	securities, if, upon examination or investigation into the 630
	944	+	affairs of the issuer of such security , the office determines it 631
	945	+	shall appear that: 632
	946	+	(a) The issuer cannot pay its debts as they become due in 633
	947	+	the usual course of business is insolvent; 634
	948	+	(b) The issuer or any officer, director, manager or 635
	949	+	managing member, or control person of the issuer has violated 636
	950	+	any provision of this chapter or any rule made hereunder or any 637
	951	+	order of the office of which such issuer has notice; 638
	952	+	(c) The issuer or any officer, director, manager or 639
	953	+	managing member, or control person of the issue r has been or is 640
	954	+	engaged or is about to engage in fraudulent transactions; 641
	955	+	(d) The issuer or any officer, director, manager or 642
	956	+	managing member, or control person of the issuer has been found 643
	957	+	guilty of a fraudulent act in connection with any sale of 644
	958	+	securities, has engaged, is engaged, or is about to engage, in 645
	959	+	making a fictitious sale or purchase of any security, or in any 646
	960	+	practice or sale of any security which is fraudulent or a 647
	961	+	violation of any law; 648
	962	+	(e) The issuer or any officer, director, manager or 649
	963	+	managing member, or control person of the issuer has had a final 650
	964	+
	965	+	CS/HB 253 2023
	966	+
	967	+
	968	+
	969	+	CODING: Words stricken are deletions; words underlined are additions.
	970	+	hb0253-01-c1
	971	+	Page 27 of 68
	972	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	973	+
	974	+
	975	+
	976	+	judgment entered against such issuer or person in a civil action 651
	977	+	on the grounds of fraud, embezzlement, misrepresentation, or 652
	978	+	deceit; 653
	979	+	(f) The issuer or any officer, director, manager or 654
	980	+	managing member, or control person of the issuer has engaged in 655
	981	+	any action that would be grounds for revocation, denial, or 656
	982	+	suspension under s. 517.161(1) demonstrated any evidence of 657
	983	+	unworthiness; 658
	984	+	(g) The issuer or any officer, director, manager or 659
	985	+	managing member, or control person of the issuer is in any other 660
	986	+	way dishonest or has made any fraudulent representations or 661
	987	+	failed to disclose any material information in any prospectus or 662
	988	+	in any circular or other literature that has been distributed 663
	989	+	concerning the issuer or its securities; 664
	990	+	(h) The security registered or sought to be registered is 665
	991	+	the subject of an injunction entered by a court of competent 666
	992	+	jurisdiction or is the subject of an administrative stop -order 667
	993	+	or similar order prohibiting the offer or sale of the security; 668
	994	+	or 669
	995	+	(i) For any security for which registration has been 670
	996	+	applied pursuant to s. 517.081, the terms of the offer or sale 671
	997	+	of such securities would not be fair, just, or equitable ; or 672
	998	+	(j) The issuer or any person acting on behalf of the 673
	999	+	issuer has failed to timely complete any application for 674
	1000	+	registration filed with the office pursuant to the provisions of 675
	1001	+
	1002	+	CS/HB 253 2023
	1003	+
	1004	+
	1005	+
	1006	+	CODING: Words stricken are deletions; words underlined are additions.
	1007	+	hb0253-01-c1
	1008	+	Page 28 of 68
	1009	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1010	+
	1011	+
	1012	+
	1013	+	s. 517.081 or s. 517.082 or any rule adopted under such 676
	1014	+	sections. 677
	1015	+	(2) In making such examination or investigation, the 678
	1016	+	office shall have access to and may compel the production of all 679
	1017	+	the books and papers of such issuer and may administer oaths to 680
	1018	+	and examine the officers of such issuer or any other person 681
	1019	+	connected therewith as to its business and affairs and may also 682
	1020	+	require a balance sheet exhibiting the assets and liabilities of 683
	1021	+	any such issuer or its income statement, or both, to be 684
	1022	+	certified to by a public accountant either of this state or of 685
	1023	+	any other state where the issuer's business is located. Whenever 686
	1024	+	the office deems it necessary, it may also require such balance 687
	1025	+	sheet or income statement, or both, to be made more specific in 688
	1026	+	such particulars as the office may require. 689
	1027	+	(3)(2) If any issuer refuses shall refuse to permit an 690
	1028	+	examination or investigation to be made by the office, it shall 691
	1029	+	be proper ground for revocation of registration. 692
	1030	+	(4)(3) If the office deems it necessary, it may enter an 693
	1031	+	order suspending the right to sell securities pending any 694
	1032	+	examination or investigation, provided that the order shall 695
	1033	+	state the office's grounds for taking such action. 696
	1034	+	(5)(4) Notice of the entry of such order shall be given 697
	1035	+	personally or by mail, personally, by telephone confirmed in 698
	1036	+	writing, or by telegraph to the issuer. Before such order is 699
	1037	+	made final, the issuer applying for registration shall, on 700
	1038	+
	1039	+	CS/HB 253 2023
	1040	+
	1041	+
	1042	+
	1043	+	CODING: Words stricken are deletions; words underlined are additions.
	1044	+	hb0253-01-c1
	1045	+	Page 29 of 68
	1046	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1047	+
	1048	+
	1049	+
	1050	+	application, be entitled to a hearing. 701
	1051	+	(6)(5) The office may deny any request to terminate any 702
	1052	+	registration or to withdraw any application for registration if 703
	1053	+	the office believes that an act which would be grounds for 704
	1054	+	denial, suspension, or revocation under this chapter has been 705
	1055	+	committed. 706
	1056	+	Section 6. Subsections (3) through (22) of section 517.12, 707
	1057	+	Florida Statutes, are renumbered as subsections (2) through 708
	1058	+	(21), respectively, and subsection (1), present subsections (2) 709
	1059	+	and (3), paragraph (b) of present subsection (6), present 710
	1060	+	subsections (7) and (11), paragraph (b) of present subsection 711
	1061	+	(15), and present subsections (20) and (21) of that section are 712
	1062	+	amended to read: 713
	1063	+	517.12 Registration of dealers, associated persons, 714
	1064	+	intermediaries, and investment advisers. — 715
	1065	+	(1) No dealer or, associated person, or issuer of 716
	1066	+	securities shall sell or offer for sale any securities in or 717
	1067	+	from offices in this state , or sell securities to persons in 718
	1068	+	this state from offices outside this state, by mail or 719
	1069	+	otherwise, unless the person is has been registered with the 720
	1070	+	office as a dealer or as an associated person of a dealer 721
	1071	+	pursuant to the provisions of this section. The office shal l not 722
	1072	+	register any person as an associated person of a dealer unless 723
	1073	+	the dealer with which the applicant seeks registration is 724
	1074	+	lawfully registered with the office pursuant to this chapter. 725
	1075	+
	1076	+	CS/HB 253 2023
	1077	+
	1078	+
	1079	+
	1080	+	CODING: Words stricken are deletions; words underlined are additions.
	1081	+	hb0253-01-c1
	1082	+	Page 30 of 68
	1083	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1084	+
	1085	+
	1086	+
	1087	+	(2) The registration requirements of this section do not 726
	1088	+	apply to the issuers of securities exempted by s. 517.051(1) -(8) 727
	1089	+	and (10). 728
	1090	+	(2)(3) Except as otherwise provided in s. 729
	1091	+	517.061(11)(a)4., (13), (16), (17), or (19), The registration 730
	1092	+	requirements of this section do not apply in a transaction 731
	1093	+	exempted by s. 517.061(1)-(10) and (12), s. 517.061(1)-(12), 732
	1094	+	(14), and (15). 733
	1095	+	(5)(6) A dealer, associated person, or investment adviser, 734
	1096	+	in order to obtain registration, must file with the office a 735
	1097	+	written application, on a form which the commission may by rule 736
	1098	+	prescribe. The commission may establish, by rule, procedures for 737
	1099	+	depositing fees and filing documents by electronic means 738
	1100	+	provided such procedures provide the office with the information 739
	1101	+	and data required by this section. Each dealer or investment 740
	1102	+	adviser must also file an irrevocable written consent to service 741
	1103	+	of civil process similar to that provided for in s. 517.101. The 742
	1104	+	application shall contain such information as the commission or 743
	1105	+	office may require concerning such matters as: 744
	1106	+	(b) The applicant's form and place of organization; and, 745
	1107	+	if the applicant is: 746
	1108	+	1. A corporation, a copy of its articles of incorporation 747
	1109	+	and amendments to the articles of incorporation ; 748
	1110	+	2. A limited liability company, a copy of its articles of 749
	1111	+	organization with amendments to its articles; or 750
	1112	+
	1113	+	CS/HB 253 2023
	1114	+
	1115	+
	1116	+
	1117	+	CODING: Words stricken are deletions; words underlined are additions.
	1118	+	hb0253-01-c1
	1119	+	Page 31 of 68
	1120	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1121	+
	1122	+
	1123	+
	1124	+	3., if A partnership, a copy of the partnership agreement. 751
	1125	+	(6)(7) The application must also contain such information 752
	1126	+	as the commission or office may require about the applicant; any 753
	1127	+	member, principal, or director of the applicant or any person 754
	1128	+	having a similar status or performing similar functions; any 755
	1129	+	person directly or indirectly controlling the applicant; or any 756
	1130	+	employee of a dealer or of an investment adviser rendering 757
	1131	+	investment advisory services. Each applicant and any direct 758
	1132	+	owners, principals, or indirect owners that are required to be 759
	1133	+	reported on Form BD or Form ADV pursuant to subsection (14) (15) 760
	1134	+	shall submit fingerprints for live -scan processing in accordance 761
	1135	+	with rules adopted by the commission. The fingerprints may be 762
	1136	+	submitted through a third-party vendor authorized by the 763
	1137	+	Department of Law Enforcement to provide live -scan 764
	1138	+	fingerprinting. The costs of fingerprint processing shall be 765
	1139	+	borne by the person subject to the background check. The 766
	1140	+	Department of Law Enforcement shall conduct a sta te criminal 767
	1141	+	history background check, and a federal criminal history 768
	1142	+	background check must be conducted through the Federal Bureau of 769
	1143	+	Investigation. The office shall review the results of the state 770
	1144	+	and federal criminal history background checks and determi ne 771
	1145	+	whether the applicant meets licensure requirements. The 772
	1146	+	commission may waive, by rule, the requirement that applicants, 773
	1147	+	including any direct owners, principals, or indirect owners that 774
	1148	+	are required to be reported on Form BD or Form ADV pursuant to 775
	1149	+
	1150	+	CS/HB 253 2023
	1151	+
	1152	+
	1153	+
	1154	+	CODING: Words stricken are deletions; words underlined are additions.
	1155	+	hb0253-01-c1
	1156	+	Page 32 of 68
	1157	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1158	+
	1159	+
	1160	+
	1161	+	subsection (14) (15), submit fingerprints or the requirement 776
	1162	+	that such fingerprints be processed by the Department of Law 777
	1163	+	Enforcement or the Federal Bureau of Investigation. The 778
	1164	+	commission or office may require information about any such 779
	1165	+	applicant or person con cerning such matters as: 780
	1166	+	(a) The applicant's or person's His or her full name, and 781
	1167	+	any other names by which the applicant or person he or she may 782
	1168	+	have been known, and the applicant's or person's his or her age, 783
	1169	+	social security number, photograph, qualifi cations, and 784
	1170	+	educational and business history. 785
	1171	+	(b) Any injunction or administrative order by a state or 786
	1172	+	federal agency, national securities exchange, or national 787
	1173	+	securities association involving a security or any aspect of a 788
	1174	+	dealer's or investment advise r's regulated the securities 789
	1175	+	business and any injunction or administrative order by a state 790
	1176	+	or federal agency regulating banking, insurance, finance, or 791
	1177	+	small loan companies, real estate, mortgage brokers, or other 792
	1178	+	related or similar industries, which inju nctions or 793
	1179	+	administrative orders relate to such person. 794
	1180	+	(c) The applicant's or person's His or her conviction of, 795
	1181	+	or plea of nolo contendere to, a criminal offense or the 796
	1182	+	applicant's or person's his or her commission of any acts which 797
	1183	+	would be grounds for refusal of an application under s. 517.161. 798
	1184	+	(d) The names and addresses of other persons of whom the 799
	1185	+	office may inquire as to the applicant's or person's his or her 800
	1186	+
	1187	+	CS/HB 253 2023
	1188	+
	1189	+
	1190	+
	1191	+	CODING: Words stricken are deletions; words underlined are additions.
	1192	+	hb0253-01-c1
	1193	+	Page 33 of 68
	1194	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1195	+
	1196	+
	1197	+
	1198	+	character, reputation, and financial responsibility. 801
	1199	+	(10)(a)(11)(a) If the office finds that the applicant is 802
	1200	+	of good repute and character and has complied with the 803
	1201	+	applicable registration provisions of this chapter and the rules 804
	1202	+	made pursuant hereto, it shall register the applicant unless the 805
	1203	+	applicant is otherwise disq ualified for registration pursuant to 806
	1204	+	law. The registration of each dealer, investment adviser, and 807
	1205	+	associated person expires on December 31 of the year the 808
	1206	+	registration became effective unless the registrant has renewed 809
	1207	+	its his or her registration on or b efore that date. Registration 810
	1208	+	may be renewed by furnishing such information as the commission 811
	1209	+	may require, together with payment of the fee required in 812
	1210	+	paragraph (9)(a) (10)(a) for dealers, investment advisers, or 813
	1211	+	associated persons and the payment of any amount lawfully due 814
	1212	+	and owing to the office pursuant to any order of the office or 815
	1213	+	pursuant to any agreement with the office. Any dealer, 816
	1214	+	investment adviser, or associated person who has not renewed a 817
	1215	+	registration by the time the current registration expir es may 818
	1216	+	request reinstatement of such registration by filing with the 819
	1217	+	office, on or before January 31 of the year following the year 820
	1218	+	of expiration, such information as may be required by the 821
	1219	+	commission, together with payment of the fee required in 822
	1220	+	paragraph (9)(a) (10)(a) for dealers, investment advisers, or 823
	1221	+	associated persons and a late fee equal to the amount of such 824
	1222	+	fee. Any reinstatement of registration granted by the office 825
	1223	+
	1224	+	CS/HB 253 2023
	1225	+
	1226	+
	1227	+
	1228	+	CODING: Words stricken are deletions; words underlined are additions.
	1229	+	hb0253-01-c1
	1230	+	Page 34 of 68
	1231	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1232	+
	1233	+
	1234	+
	1235	+	during the month of January shall be deemed effective 826
	1236	+	retroactive to January 1 o f that year. 827
	1237	+	(b) The office shall waive the $50 assessment fee for an 828
	1238	+	associated person required by paragraph (9)(a) (10)(a) for a 829
	1239	+	registrant renewing his or her registration who: 830
	1240	+	1. Is an active duty member of the United States Armed 831
	1241	+	Forces or the spouse of such member; 832
	1242	+	2. Is or was a member of the United States Armed Forces 833
	1243	+	and served on active duty within the 2 years preceding the 834
	1244	+	expiration date of the registration pursuant to paragraph (a). 835
	1245	+	To qualify for the fee waiver, a registrant who is a for mer 836
	1246	+	member of the United States Armed Forces who served on active 837
	1247	+	duty within the 2 years preceding the expiration date of the 838
	1248	+	registration must have received an honorable discharge upon 839
	1249	+	separation or discharge from the United States Armed Forces; or 840
	1250	+	3. Is the surviving spouse of a member of the United 841
	1251	+	States Armed Forces if the member was serving on active duty at 842
	1252	+	the time of death and died within the 2 years preceding the 843
	1253	+	surviving spouse's registration expiration date pursuant to 844
	1254	+	paragraph (a). 845
	1255	+	846
	1256	+	A registrant seeking such fee waiver must submit proof, in a 847
	1257	+	form prescribed by commission rule, that the registrant meets 848
	1258	+	one of the qualifications in this paragraph. 849
	1259	+	(14)(15) 850
	1260	+
	1261	+	CS/HB 253 2023
	1262	+
	1263	+
	1264	+
	1265	+	CODING: Words stricken are deletions; words underlined are additions.
	1266	+	hb0253-01-c1
	1267	+	Page 35 of 68
	1268	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1269	+
	1270	+
	1271	+
	1272	+	(b) In lieu of filing with the office the applications 851
	1273	+	specified in subsection (5) (6), the fees required by subsection 852
	1274	+	(9) (10), the renewals required by subsection (10) (11), and the 853
	1275	+	termination notices required by subsection (11) (12), the 854
	1276	+	commission may by rule establish procedures for the deposit of 855
	1277	+	such fees and documents with the Central Registration Depository 856
	1278	+	or the Investment Adviser Registration Depository of the 857
	1279	+	Financial Industry Regulatory Authority, as developed under 858
	1280	+	contract with the North American Securities Administrators 859
	1281	+	Association, Inc. 860
	1282	+	(19)(20) An intermediary may not engage in business in 861
	1283	+	this state unless the intermediary is registered as a dealer or 862
	1284	+	as an intermediary with the office pursuant to this section to 863
	1285	+	facilitate the offer or sale of securities in accordance with s. 864
	1286	+	517.0611. An intermediary, in order to obtain registration, must 865
	1287	+	file with the office a written application on a form prescribed 866
	1288	+	by commission rule and pay a registration fee of $200. The fees 867
	1289	+	under this subsection shall be deposited into the Regulatory 868
	1290	+	Trust Fund of the office. The commissi on may establish by rule 869
	1291	+	procedures for depositing fees and filing documents by 870
	1292	+	electronic means if such procedures provide the office with the 871
	1293	+	information and data required by this section. Each intermediary 872
	1294	+	must also file an irrevocable written consent t o service of 873
	1295	+	civil process, as provided in s. 517.101. 874
	1296	+	(a) The application must contain such information as the 875
	1297	+
	1298	+	CS/HB 253 2023
	1299	+
	1300	+
	1301	+
	1302	+	CODING: Words stricken are deletions; words underlined are additions.
	1303	+	hb0253-01-c1
	1304	+	Page 36 of 68
	1305	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1306	+
	1307	+
	1308	+
	1309	+	commission or office may require concerning: 876
	1310	+	1. The name of the applicant and address of its principal 877
	1311	+	office and each office in this state. 878
	1312	+	2. The applicant's form and place of organization; and, if 879
	1313	+	the applicant is: 880
	1314	+	a. A corporation, a copy of its articles of incorporation 881
	1315	+	and amendments to the articles of incorporation ; 882
	1316	+	b. A limited liability company, a copy of its articles of 883
	1317	+	organization and amendments to the articles and a copy of the 884
	1318	+	company's operating agreement; or 885
	1319	+	c., if A partnership, a copy of the partnership agreement. 886
	1320	+	3. The website address where securities of the issuer will 887
	1321	+	be offered. 888
	1322	+	4. Contact information. 889
	1323	+	(b) The application must also contain such information as 890
	1324	+	the commission may require by rule about the applicant; any 891
	1325	+	member, principal, or director of the applicant or any person 892
	1326	+	having a similar status or performing similar functions; or any 893
	1327	+	persons directly or indirectly controlling the applicant. Each 894
	1328	+	applicant and any direct owners, principals, or indirect owners 895
	1329	+	that are required to be reported on a form adopted by commission 896
	1330	+	rule shall submit fingerprints for live -scan processing in 897
	1331	+	accordance with rules adopted by the commission. The 898
	1332	+	fingerprints may be submitted through a third -party vendor 899
	1333	+	authorized by the Department of Law Enforcement to provide live -900
	1334	+
	1335	+	CS/HB 253 2023
	1336	+
	1337	+
	1338	+
	1339	+	CODING: Words stricken are deletions; words underlined are additions.
	1340	+	hb0253-01-c1
	1341	+	Page 37 of 68
	1342	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1343	+
	1344	+
	1345	+
	1346	+	scan fingerprinting. The costs of fingerprint processing shall 901
	1347	+	be borne by the person subject to the b ackground check. The 902
	1348	+	Department of Law Enforcement shall conduct a state criminal 903
	1349	+	history background check, and a federal criminal history 904
	1350	+	background check must be conducted through the Federal Bureau of 905
	1351	+	Investigation. The office shall review the results o f the state 906
	1352	+	and federal criminal history background checks and determine 907
	1353	+	whether the applicant meets registration requirements. The 908
	1354	+	commission may waive, by rule, the requirement that applicants, 909
	1355	+	including any direct owners, principals, or indirect owners, 910
	1356	+	which are required to be reported on a form adopted by 911
	1357	+	commission rule, submit fingerprints or the requirement that 912
	1358	+	such fingerprints be processed by the Department of Law 913
	1359	+	Enforcement or the Federal Bureau of Investigation. The 914
	1360	+	commission, by rule, or the office may require information about 915
	1361	+	any applicant or person, including: 916
	1362	+	1. The applicant's or person's His or her full name and 917
	1363	+	any other names by which the applicant or person he or she may 918
	1364	+	have been known and the applicant's or person's his or her age, 919
	1365	+	social security number, photograph, qualifications, and 920
	1366	+	educational and business history. 921
	1367	+	2. Any injunction or administrative order by a state or 922
	1368	+	federal agency, national securities exchange, or national 923
	1369	+	securities association involving a security or any aspect of an 924
	1370	+	intermediary's regulated the securities business and any 925
	1371	+
	1372	+	CS/HB 253 2023
	1373	+
	1374	+
	1375	+
	1376	+	CODING: Words stricken are deletions; words underlined are additions.
	1377	+	hb0253-01-c1
	1378	+	Page 38 of 68
	1379	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1380	+
	1381	+
	1382	+
	1383	+	injunction or administrative order by a state or federal agency 926
	1384	+	regulating banking, insurance, finance, or small loan companies, 927
	1385	+	real estate, mortgage brokers, or other related or si milar 928
	1386	+	industries, which relate to such person. 929
	1387	+	3. The applicant's or person's His or her conviction of, 930
	1388	+	or plea of nolo contendere to, a criminal offense or the 931
	1389	+	applicant's or person's his or her commission of any acts that 932
	1390	+	would be grounds for refusal o f an application under s. 517.161. 933
	1391	+	(c) The application must be amended within 30 days if any 934
	1392	+	information contained in the form becomes inaccurate for any 935
	1393	+	reason. 936
	1394	+	(d) An intermediary or persons affiliated with the 937
	1395	+	intermediary are not subject to any dis qualification described 938
	1396	+	in s. 517.1611 or United States Securities and Exchange 939
	1397	+	Commission Rule 506(d), 17 C.F.R. 230.506(d), adopted pursuant 940
	1398	+	to the Securities Act of 1933 , as amended. Each director, 941
	1399	+	officer, manager or managing member, control person of the 942
	1400	+	issuer, any person occupying a similar status or performing a 943
	1401	+	similar function, and each person holding more than 20 percent 944
	1402	+	of the ownership interests shares of the intermediary is subject 945
	1403	+	to this requirement. 946
	1404	+	(e) If the office finds that the applic ant is of good 947
	1405	+	repute and character and has complied with the applicable 948
	1406	+	registration provisions of this chapter and the rules adopted 949
	1407	+	thereunder, it shall register the applicant. The registration of 950
	1408	+
	1409	+	CS/HB 253 2023
	1410	+
	1411	+
	1412	+
	1413	+	CODING: Words stricken are deletions; words underlined are additions.
	1414	+	hb0253-01-c1
	1415	+	Page 39 of 68
	1416	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1417	+
	1418	+
	1419	+
	1420	+	each intermediary expires on December 31 of the year the 951
	1421	+	registration became effective unless the registrant renews his 952
	1422	+	or her registration on or before that date. Registration may be 953
	1423	+	renewed by furnishing such information as the commission may 954
	1424	+	require by rule, together with payment of a $200 fee and the 955
	1425	+	payment of any amount due to the office pursuant to any order of 956
	1426	+	the office or pursuant to any agreement with the office. An 957
	1427	+	intermediary who has not renewed a registration by the time that 958
	1428	+	the current registration expires may request reinstatement of 959
	1429	+	such registration by filing with the office, on or before 960
	1430	+	January 31 of the year following the year of expiration, such 961
	1431	+	information as required by the commission, together with payment 962
	1432	+	of the $200 fee and a late fee of $200. Any reinstatement of 963
	1433	+	registration granted by the office during the month of January 964
	1434	+	is deemed effective retroactive to January 1 of that year. 965
	1435	+	(20)(21) The registration requirements of this section do 966
	1436	+	not apply to any general lines insurance agent or life insurance 967
	1437	+	agent licensed under chapter 626, for the sale of a security as 968
	1438	+	defined in s. 517.021(23)(g) s. 517.021(22)(g), if the 969
	1439	+	individual is directly authorized by the issuer to offer or sell 970
	1440	+	the security on behalf of the issuer and the issuer is a 971
	1441	+	federally chartered savings bank subject to regulation by the 972
	1442	+	Federal Deposit Insurance Corporation. Actions under this 973
	1443	+	subsection shall constitute activity under the insurance agent's 974
	1444	+	license for purposes of ss. 626.611 and 626.621. 975
	1445	+
	1446	+	CS/HB 253 2023
	1447	+
	1448	+
	1449	+
	1450	+	CODING: Words stricken are deletions; words underlined are additions.
	1451	+	hb0253-01-c1
	1452	+	Page 40 of 68
	1453	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1454	+
	1455	+
	1456	+
	1457	+	Section 7. Section 517.1214, Florida Statutes, is created 976
	1458	+	to read: 977
	1459	+	517.1214 Continuing education requirements for associated 978
	1460	+	persons of investment advisers and federal covered advisers. — 979
	1461	+	(1) As used in this section, the term: 980
	1462	+	(a) "Approved continuing education content" means the 981
	1463	+	materials, written, oral, or oth erwise, which have been approved 982
	1464	+	by NASAA or its designee and which make up the educational 983
	1465	+	program provided to an associated person under this section. 984
	1466	+	(b) "Credit" means a unit designated by NASAA or its 985
	1467	+	designee as at least 50 minutes of educational i nstruction. 986
	1468	+	(c) "Home state" means the state in which an associated 987
	1469	+	person of an investment adviser or a federal covered adviser has 988
	1470	+	his or her principal office and place of business. 989
	1471	+	(d) "NASAA" means the North American Securities 990
	1472	+	Administrators Assoc iation, Inc. 991
	1473	+	(e) "Reporting period" means one 12 -month period beginning 992
	1474	+	January 1 and ending December 31. An associated person's initial 993
	1475	+	reporting period with this state commences the first day of the 994
	1476	+	first full reporting period after the individual is r egistered 995
	1477	+	or required to be registered with this state. 996
	1478	+	(2) By December 31, 2024, and each December 31 thereafter, 997
	1479	+	each associated person of an investment adviser or a federal 998
	1480	+	covered adviser shall complete the following continuing 999
	1481	+	education content requ irements offered by a person that NASAA or 1000
	1482	+
	1483	+	CS/HB 253 2023
	1484	+
	1485	+
	1486	+
	1487	+	CODING: Words stricken are deletions; words underlined are additions.
	1488	+	hb0253-01-c1
	1489	+	Page 41 of 68
	1490	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1491	+
	1492	+
	1493	+
	1494	+	its designee has authorized to provide the continuing education 1001
	1495	+	content required by this section: 1002
	1496	+	(a) Six credits of approved continuing education content 1003
	1497	+	that addresses an associated person's ethical and regula tory 1004
	1498	+	obligations, with at least 3 hours covering the topic of ethics; 1005
	1499	+	and 1006
	1500	+	(b) Six credits of approved continuing education content 1007
	1501	+	that addresses an associated person's skills and knowledge 1008
	1502	+	regarding financial products, investment features, and practices 1009
	1503	+	in the investment advisory industry. 1010
	1504	+	(3) An associated person of an investment adviser or 1011
	1505	+	federal covered adviser who is also registered as an associated 1012
	1506	+	person of a Financial Industry Regulatory Authority (FINRA) 1013
	1507	+	member dealer and who complies with FIN RA's continuing education 1014
	1508	+	requirements is considered to be in compliance with this 1015
	1509	+	section's products and practice requirement for each applicable 1016
	1510	+	reporting period, provided that the FINRA continuing education 1017
	1511	+	content is approved continuing education conte nt. 1018
	1512	+	(4) Credits of continuing education completed by an 1019
	1513	+	associated person who was awarded and currently holds a 1020
	1514	+	credential that qualifies for examination waiver by passing any 1021
	1515	+	tests as prescribed in s. 15(b)(7) of the Securities Exchange 1022
	1516	+	Act of 1934, as amended, comply with paragraphs (2)(a) and (b), 1023
	1517	+	provided all of the following conditions are met: 1024
	1518	+	(a) The associated person completes the credits of 1025
	1519	+
	1520	+	CS/HB 253 2023
	1521	+
	1522	+
	1523	+
	1524	+	CODING: Words stricken are deletions; words underlined are additions.
	1525	+	hb0253-01-c1
	1526	+	Page 42 of 68
	1527	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1528	+
	1529	+
	1530	+
	1531	+	continuing education as a condition of maintaining the 1026
	1532	+	credential for the relevant reporting period. 1027
	1533	+	(b) The credits of continuing education completed during 1028
	1534	+	the relevant reporting period by the associated person are 1029
	1535	+	mandatory to maintain the credential. 1030
	1536	+	(c) The continuing education content provided by the 1031
	1537	+	credentialing organization during the relevant re porting period 1032
	1538	+	is approved continuing education content. 1033
	1539	+	(5) Each associated person is responsible for ensuring 1034
	1540	+	that the authorized provider reports the associated person's 1035
	1541	+	completion of the applicable continuing education requirements. 1036
	1542	+	(6) An associated person who completes credits of 1037
	1543	+	continuing education in excess of the credits required for the 1038
	1544	+	reporting period may not carry forward excess credits to a 1039
	1545	+	subsequent reporting period. 1040
	1546	+	(7) An associated person who fails to comply with this 1041
	1547	+	section by the end of a reporting period shall renew as "CE 1042
	1548	+	inactive" at the close of the calendar year in this state until 1043
	1549	+	the associated person completes and reports all required 1044
	1550	+	continuing education credits for all reporting periods as 1045
	1551	+	required by this section. If a n associated person renews as "CE 1046
	1552	+	inactive" at the close of the calendar year and fails to 1047
	1553	+	complete and report all required continuing education credits 1048
	1554	+	for all reporting periods as required by this section by the 1049
	1555	+	close of the next calendar year, the assoc iated person becomes 1050
	1556	+
	1557	+	CS/HB 253 2023
	1558	+
	1559	+
	1560	+
	1561	+	CODING: Words stricken are deletions; words underlined are additions.
	1562	+	hb0253-01-c1
	1563	+	Page 43 of 68
	1564	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1565	+
	1566	+
	1567	+
	1568	+	unregistered for purposes of this chapter. 1051
	1569	+	(8) An associated person registered or required to be 1052
	1570	+	registered in this state who is registered as an associated 1053
	1571	+	person of an investment adviser or federal covered adviser in 1054
	1572	+	the individual's home state is considered to be in compliance 1055
	1573	+	with this section if: 1056
	1574	+	(a) The associated person's home state has a continuing 1057
	1575	+	education requirement of at least 12 hours annually; and 1058
	1576	+	(b) The associated person is in compliance with the home 1059
	1577	+	state's associated person of an investment adviser or federal 1060
	1578	+	covered adviser continuing education requirements. 1061
	1579	+	(9) An associated person who was previously registered 1062
	1580	+	under s. 517.12 and became unregistered must complete continuing 1063
	1581	+	education for all reporting perio ds that occurred between the 1064
	1582	+	time that the associated person became unregistered and when the 1065
	1583	+	person became registered again under s. 517.12, unless the 1066
	1584	+	associated person takes and passes the required examinations or 1067
	1585	+	the examination requirements are waived in connection with the 1068
	1586	+	subsequent application for registration. 1069
	1587	+	Section 8. Section 517.1217, Florida Statutes, is amended 1070
	1588	+	to read: 1071
	1589	+	517.1217 Rules of conduct and prohibited business 1072
	1590	+	practices for dealers and their associated persons and for 1073
	1591	+	intermediaries.—The commission by rule may establish rules of 1074
	1592	+	conduct and prohibited business practices for dealers and their 1075
	1593	+
	1594	+	CS/HB 253 2023
	1595	+
	1596	+
	1597	+
	1598	+	CODING: Words stricken are deletions; words underlined are additions.
	1599	+	hb0253-01-c1
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	1601	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1602	+
	1603	+
	1604	+
	1605	+	associated persons and for intermediaries . In adopting the 1076
	1606	+	rules, the commission shall consider general industry standards 1077
	1607	+	as expressed in the rules and regulations of the various federal 1078
	1608	+	and self-regulatory agencies and regulatory associations, 1079
	1609	+	including, but not limited to, the United States Securities and 1080
	1610	+	Exchange Commission, the Financial Industry Regulatory 1081
	1611	+	Authority, and the North Ameri can Securities Administrators 1082
	1612	+	Association, Inc. 1083
	1613	+	Section 9. Subsections (1), (4), and (5) of section 1084
	1614	+	517.161, Florida Statutes, are amended to read: 1085
	1615	+	517.161 Revocation, denial, or suspension of registration 1086
	1616	+	of dealer, investment adviser, intermediary, or associated 1087
	1617	+	person.— 1088
	1618	+	(1) Registration under s. 517.12 may be denied or any 1089
	1619	+	registration granted may be revoked, restricted, or suspended by 1090
	1620	+	the office if the office determines that such applicant or 1091
	1621	+	registrant; any member, principal, or director of th e applicant 1092
	1622	+	or registrant or any person having a similar status or 1093
	1623	+	performing similar functions; or any person directly or 1094
	1624	+	indirectly controlling the applicant or registrant: 1095
	1625	+	(a) Has violated any provision of this chapter or any rule 1096
	1626	+	or order made under this chapter; 1097
	1627	+	(b) Has made a material false statement in the application 1098
	1628	+	for registration; 1099
	1629	+	(c) Has been guilty of a fraudulent act in connection with 1100
	1630	+
	1631	+	CS/HB 253 2023
	1632	+
	1633	+
	1634	+
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	1636	+	hb0253-01-c1
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	1638	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1639	+
	1640	+
	1641	+
	1642	+	rendering investment advice or in connection with any sale of 1101
	1643	+	securities, has been or is engaged or is about to engage in 1102
	1644	+	making fictitious or pretended sales or purchases of any such 1103
	1645	+	securities or in any practice involving the rendering of 1104
	1646	+	investment advice or the sale of securities which is fraudulent 1105
	1647	+	or in violation of the law; 1106
	1648	+	(d) Has made a misrepre sentation or false statement to, or 1107
	1649	+	concealed any essential or material fact from, any person in the 1108
	1650	+	rendering of investment advice or the sale of a security to such 1109
	1651	+	person; 1110
	1652	+	(e) Has failed to account to persons interested for all 1111
	1653	+	money and property recei ved; 1112
	1654	+	(f) Has not delivered, after a reasonable time, to persons 1113
	1655	+	entitled thereto securities held or agreed to be delivered by 1114
	1656	+	the dealer, broker, or investment adviser, as and when paid for, 1115
	1657	+	and due to be delivered; 1116
	1658	+	(g) Is rendering investment advice o r selling or offering 1117
	1659	+	for sale securities through any associated person not registered 1118
	1660	+	in compliance with the provisions of this chapter; 1119
	1661	+	(h) Has demonstrated unworthiness to transact the business 1120
	1662	+	of dealer, investment adviser, intermediary, or associate d 1121
	1663	+	person; 1122
	1664	+	(i) Has exercised management or policy control over or 1123
	1665	+	owned 10 percent or more of the securities of any dealer, 1124
	1666	+	intermediary, or investment adviser that has been declared 1125
	1667	+
	1668	+	CS/HB 253 2023
	1669	+
	1670	+
	1671	+
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	1675	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1676	+
	1677	+
	1678	+
	1679	+	bankrupt, or had a trustee appointed under the Securities 1126
	1680	+	Investor Protection Act; or is, in the case of a dealer, 1127
	1681	+	intermediary, or investment adviser, unable to pay its debts as 1128
	1682	+	they become due in the usual course of business insolvent; 1129
	1683	+	(i)(j) Has been convicted of, or has entered a plea of 1130
	1684	+	guilty or nolo contendere to, reg ardless of whether adjudication 1131
	1685	+	was withheld, a crime against the laws of this state or any 1132
	1686	+	other state or of the United States or of any other country or 1133
	1687	+	government which relates to registration as a dealer, investment 1134
	1688	+	adviser, issuer of securities, inter mediary, or associated 1135
	1689	+	person; which relates to the application for such registration; 1136
	1690	+	or which involves moral turpitude or fraudulent or dishonest 1137
	1691	+	dealing; 1138
	1692	+	(j)(k) Has had a final judgment entered against her or him 1139
	1693	+	in a civil action upon grounds of frau d, embezzlement, 1140
	1694	+	misrepresentation, or deceit; 1141
	1695	+	(l) Is of bad business repute; 1142
	1696	+	(k)(m) Has been the subject of any decision, finding, 1143
	1697	+	injunction, suspension, prohibition, revocation, denial, 1144
	1698	+	judgment, or administrative order by any court of competent 1145
	1699	+	jurisdiction, administrative law judge, or by any state or 1146
	1700	+	federal agency, national securi ties, commodities, or option 1147
	1701	+	exchange, or national securities, commodities, or option 1148
	1702	+	association, involving a violation of any federal or state 1149
	1703	+	securities or commodities law or any rule or regulation 1150
	1704	+
	1705	+	CS/HB 253 2023
	1706	+
	1707	+
	1708	+
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	1712	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1713	+
	1714	+
	1715	+
	1716	+	promulgated thereunder, or any rule or regulation of an y 1151
	1717	+	national securities, commodities, or options exchange or 1152
	1718	+	national securities, commodities, or options association, or has 1153
	1719	+	been the subject of any injunction or adverse administrative 1154
	1720	+	order by a state or federal agency regulating banking, 1155
	1721	+	insurance, finance or small loan companies , real estate, 1156
	1722	+	mortgage brokers or lenders, money transmitters, or other 1157
	1723	+	related or similar industries. For purposes of this subsection, 1158
	1724	+	the office may not deny registration to any applicant who has 1159
	1725	+	been continuously registered wi th the office for 5 years after 1160
	1726	+	the date of entry of such decision, finding, injunction, 1161
	1727	+	suspension, prohibition, revocation, denial, judgment, or 1162
	1728	+	administrative order provided such decision, finding, 1163
	1729	+	injunction, suspension, prohibition, revocation, denial , 1164
	1730	+	judgment, or administrative order has been timely reported to 1165
	1731	+	the office pursuant to the commission's rules; or 1166
	1732	+	(l)(n) Made payment to the office for a registration with 1167
	1733	+	a check or electronic transmission of funds that is dishonored 1168
	1734	+	by the applicant's or registrant's financial institution ; 1169
	1735	+	(m) Failed to pay and fully satisfy any final judgment or 1170
	1736	+	arbitration award resulting from an investment -related, client- 1171
	1737	+	or customer-initiated arbitration or court proceeding, unless 1172
	1738	+	alternative payment arrangement s are agreed to in writing 1173
	1739	+	between the client or customer and the investment adviser, 1174
	1740	+	dealer, or associated person and the investment adviser, dealer, 1175
	1741	+
	1742	+	CS/HB 253 2023
	1743	+
	1744	+
	1745	+
	1746	+	CODING: Words stricken are deletions; words underlined are additions.
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	1749	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1750	+
	1751	+
	1752	+
	1753	+	or associated person complies with the terms of the alternative 1176
	1754	+	payment arrangement; 1177
	1755	+	(n) Attempted to avoid payment of any final judgment or 1178
	1756	+	arbitration award resulting from an investment -related, client- 1179
	1757	+	or customer-initiated arbitration or court proceeding, unless 1180
	1758	+	alternative payment arrangements are agreed to in writing 1181
	1759	+	between the client or customer and the investment adviser, 1182
	1760	+	dealer, or associated person and the investment adviser, dealer, 1183
	1761	+	or associated person complies with the terms of the alternative 1184
	1762	+	payment arrangements; or 1185
	1763	+	(o) Failed to pay and fully satisfy any fine, civil 1186
	1764	+	penalty, order of resti tution, order of disgorgement, or similar 1187
	1765	+	monetary payment obligation imposed upon the investment adviser, 1188
	1766	+	dealer, or associated person by the Securities and Exchange 1189
	1767	+	Commission, the securities regulator or other financial services 1190
	1768	+	regulator of any state o r province, or any securities industry 1191
	1769	+	self-regulatory organization . 1192
	1770	+	(4) It shall be sufficient cause for denial of an 1193
	1771	+	application or revocation of registration, in the case of a 1194
	1772	+	partnership, corporation, limited liability company, or 1195
	1773	+	unincorporated association, if any member of the partnership , 1196
	1774	+	any manager or managing member of the limited liability company, 1197
	1775	+	or any officer, director, or ultimate equitable owner of the 1198
	1776	+	corporation or association has committed any act or omission 1199
	1777	+	which would be cause for d enying, revoking, restricting, or 1200
	1778	+
	1779	+	CS/HB 253 2023
	1780	+
	1781	+
	1782	+
	1783	+	CODING: Words stricken are deletions; words underlined are additions.
	1784	+	hb0253-01-c1
	1785	+	Page 49 of 68
	1786	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1787	+
	1788	+
	1789	+
	1790	+	suspending the registration of an individual dealer, investment 1201
	1791	+	adviser, intermediary, or associated person. As used in this 1202
	1792	+	subsection, the term "ultimate equitable owner" means a natural 1203
	1793	+	person who directly or indirectly owns or controls an ownership 1204
	1794	+	interest in the corporation, partnership, association, or other 1205
	1795	+	legal entity however organized, regardless of whether such 1206
	1796	+	natural person owns or controls such ownership interest through 1207
	1797	+	one or more proxies, powers of attorne y, nominees, corporations, 1208
	1798	+	associations, partnerships, trusts, joint stock companies, or 1209
	1799	+	other entities or devices, or any combination thereof. 1210
	1800	+	(5) The office may deny any request to terminate or 1211
	1801	+	withdraw any application or registration if the office bel ieves 1212
	1802	+	that an act that which would be a ground for denial, suspension, 1213
	1803	+	restriction, or revocation under this chapter has been 1214
	1804	+	committed. 1215
	1805	+	Section 10. Section 517.181, Florida Statutes, is 1216
	1806	+	repealed. 1217
	1807	+	Section 11. Paragraph (a) of subsection (4) of sect ion 1218
	1808	+	517.201, Florida Statutes, is amended to read: 1219
	1809	+	517.201 Investigations; examinations; subpoenas; hearings; 1220
	1810	+	witnesses.— 1221
	1811	+	(4)(a) In the event of substantial noncompliance with a 1222
	1812	+	subpoena or subpoena duces tecum issued or caused to be issued 1223
	1813	+	by the office pursuant to this section, the office may petition 1224
	1814	+	the circuit court of the county in which the person subpoenaed 1225
	1815	+
	1816	+	CS/HB 253 2023
	1817	+
	1818	+
	1819	+
	1820	+	CODING: Words stricken are deletions; words underlined are additions.
	1821	+	hb0253-01-c1
	1822	+	Page 50 of 68
	1823	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1824	+
	1825	+
	1826	+
	1827	+	resides or has its principal place of business for an order 1226
	1828	+	requiring the subpoenaed person to appear and testify and to 1227
	1829	+	produce such books, records, and documents as are specified in 1228
	1830	+	such subpoena duces tecum. The court may grant injunctive relief 1229
	1831	+	restraining the issuance, sale or offer for sale, purchase or 1230
	1832	+	offer to purchase, promotion, negotiation, advertisement, or 1231
	1833	+	distribution in or from offices in this state of securities or 1232
	1834	+	investments in or from this state by the noncompliant a person 1233
	1835	+	or its agent, employee, broker, partner, officer, director, 1234
	1836	+	manager, managing member, equity holder, or any person directly 1235
	1837	+	or indirectly controlling the noncompliant person stockholder 1236
	1838	+	thereof, and may grant such other relief, including, but not 1237
	1839	+	limited to, the restraint, by injunction or appointment of a 1238
	1840	+	receiver, of any transfer, pledge, assignment, or other 1239
	1841	+	disposition of such person's assets or any con cealment, 1240
	1842	+	alteration, destruction, or other disposition of subpoenaed 1241
	1843	+	books, records, or documents, as the court deems appropriate, 1242
	1844	+	until such person has fully complied with such subpoena or 1243
	1845	+	subpoena duces tecum and the office has completed its 1244
	1846	+	investigation or examination. The office is entitled to the 1245
	1847	+	summary procedure provided in s. 51.011, and the court shall 1246
	1848	+	advance the cause on its calendar. Costs incurred by the office 1247
	1849	+	to obtain an order granting, in whole or in part, such petition 1248
	1850	+	for enforcement of a subpoena or subpoena duces tecum shall be 1249
	1851	+	taxed against the subpoenaed person, and failure to comply with 1250
	1852	+
	1853	+	CS/HB 253 2023
	1854	+
	1855	+
	1856	+
	1857	+	CODING: Words stricken are deletions; words underlined are additions.
	1858	+	hb0253-01-c1
	1859	+	Page 51 of 68
	1860	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1861	+
	1862	+
	1863	+
	1864	+	such order shall be a contempt of court. 1251
	1865	+	Section 12. Paragraph (d) of subsection (3) of section 1252
	1866	+	921.0022, Florida Statutes, is amended to read: 1253
	1867	+	921.0022 Criminal Punishment Code; offense severity 1254
	1868	+	ranking chart.— 1255
	1869	+	(3) OFFENSE SEVERITY RANKING CHART 1256
	1870	+	(d) LEVEL 4 1257
	1871	+	1258
1985	1872		Florida
1986	1873		Statute
1987	1874		Felony
1988	1875		Degree Description
1989		-	~~1336~~
	1876	+	1259
1990	1877		316.1935(3)(a) 2nd Driving at high speed or with
1991	1878		wanton disregard for safety
1992	1879		while fleeing or attempting to
1993	1880		elude law enforcement officer
1994	1881		who is in a patrol vehicle with
1995	1882		siren and lights activated.
1996		-	~~1337~~
	1883	+	1260
1997	1884		499.0051(1) 3rd Failure to maintain or deliver
1998	1885		transaction history,
1999	1886		transaction information, or
2000	1887		transaction statements.
2001		-	1338
2002		-
2003		-	CS/CS/HB 253 2023
2004		-
2005		-
2006		-
2007		-	CODING: Words stricken are deletions; words underlined are additions.
2008		-	hb0253-02-c2
2009		-	Page 55 of 71
2010		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2011		-
2012		-
2013		-
	1888	+	1261
2014	1889		499.0051(5) 2nd Knowing sale or delivery, or
2015	1890		possession with intent to sell,
	1891	+
	1892	+	CS/HB 253 2023
	1893	+
	1894	+
	1895	+
	1896	+	CODING: Words stricken are deletions; words underlined are additions.
	1897	+	hb0253-01-c1
	1898	+	Page 52 of 68
	1899	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1900	+
	1901	+
	1902	+
2016	1903		contraband prescription drugs.
2017		-	~~1339~~
	1904	+	1262
2018	1905		517.07(1) 3rd Failure to register securities.
2019		-	~~1340~~
	1906	+	1263
2020	1907		517.12(1) 3rd Failure of dealer or,
2021	1908		associated person of a dealer,
2022	1909		or issuer of securities to
2023	1910		register.
2024		-	~~1341~~
	1911	+	1264
2025	1912		784.07(2)(b) 3rd Battery of law enforcement
2026	1913		officer, firefighter, etc.
2027		-	~~1342~~
	1914	+	1265
2028	1915		784.074(1)(c) 3rd Battery of sexually violent
2029	1916		predators facility staff.
2030		-	~~1343~~
	1917	+	1266
2031	1918		784.075 3rd Battery on detention or
2032	1919		commitment facility staff.
2033		-	~~1344~~
	1920	+	1267
2034	1921		784.078 3rd Battery of facility employee by
2035	1922		throwing, tossing, or expelling
2036	1923		certain fluids or materials.
2037		-	~~1345~~
	1924	+	1268
2038	1925		784.08(2)(c) 3rd Battery on a person 65 years of
2039		-
2040		-	CS/CS/HB 253 2023
2041		-
2042		-
2043		-
2044		-	CODING: Words stricken are deletions; words underlined are additions.
2045		-	hb0253-02-c2
2046		-	Page 56 of 71
2047		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2048		-
2049		-
2050		-
2051	1926		age or older.
2052		-	1346
	1927	+	1269
	1928	+
	1929	+	CS/HB 253 2023
	1930	+
	1931	+
	1932	+
	1933	+	CODING: Words stricken are deletions; words underlined are additions.
	1934	+	hb0253-01-c1
	1935	+	Page 53 of 68
	1936	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1937	+
	1938	+
	1939	+
2053	1940		784.081(3) 3rd Battery on specified official
2054	1941		or employee.
2055		-	~~1347~~
	1942	+	1270
2056	1943		784.082(3) 3rd Battery by detained person on
2057	1944		visitor or other detainee.
2058		-	~~1348~~
	1945	+	1271
2059	1946		784.083(3) 3rd Battery on code inspector.
2060		-	~~1349~~
	1947	+	1272
2061	1948		784.085 3rd Battery of child by throwing,
2062	1949		tossing, projecting, or
2063	1950		expelling certain fluids or
2064	1951		materials.
2065		-	~~1350~~
	1952	+	1273
2066	1953		787.03(1) 3rd Interference with custody;
2067	1954		wrongly takes minor from
2068	1955		appointed guardian.
2069		-	~~1351~~
	1956	+	1274
2070	1957		787.04(2) 3rd Take, entice, or remove child
2071	1958		beyond state limits with
2072	1959		criminal intent pending custody
2073	1960		proceedings.
2074		-	~~1352~~
	1961	+	1275
2075	1962		787.04(3) 3rd Carrying child beyond state
2076		-
2077		-	CS/CS/HB 253 2023
2078		-
2079		-
2080		-
2081		-	CODING: Words stricken are deletions; words underlined are additions.
2082		-	hb0253-02-c2
2083		-	Page 57 of 71
2084		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2085		-
2086		-
2087		-
2088	1963		lines with criminal intent to
2089	1964		avoid producing child at
	1965	+
	1966	+	CS/HB 253 2023
	1967	+
	1968	+
	1969	+
	1970	+	CODING: Words stricken are deletions; words underlined are additions.
	1971	+	hb0253-01-c1
	1972	+	Page 54 of 68
	1973	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	1974	+
	1975	+
	1976	+
2090	1977		custody hearing or delivering
2091	1978		to designated person.
2092		-	~~1353~~
	1979	+	1276
2093	1980		787.07 3rd Human smuggling.
2094		-	~~1354~~
	1981	+	1277
2095	1982		790.115(1) 3rd Exhibiting firearm or weapon
2096	1983		within 1,000 feet of a school.
2097		-	~~1355~~
	1984	+	1278
2098	1985		790.115(2)(b) 3rd Possessing electric weapon or
2099	1986		device, destructive device, or
2100	1987		other weapon on school
2101	1988		property.
2102		-	~~1356~~
	1989	+	1279
2103	1990		790.115(2)(c) 3rd Possessing firearm on school
2104	1991		property.
2105		-	~~1357~~
	1992	+	1280
2106	1993		794.051(1) 3rd Indecent, lewd, or lascivious
2107	1994		touching of certain minors.
2108		-	~~1358~~
	1995	+	1281
2109	1996		800.04(7)(c) 3rd Lewd or lascivious exhibition;
2110	1997		offender less than 18 years.
2111		-	~~1359~~
	1998	+	1282
2112	1999		806.135 2nd Destroying or demolishing a
2113		-
2114		-	CS/CS/HB 253 2023
2115		-
2116		-
2117		-
2118		-	CODING: Words stricken are deletions; words underlined are additions.
2119		-	hb0253-02-c2
2120		-	Page 58 of 71
2121		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2122		-
2123		-
2124		-
2125	2000		memorial or historic property.
2126		-	1360
	2001	+	1283
	2002	+
	2003	+	CS/HB 253 2023
	2004	+
	2005	+
	2006	+
	2007	+	CODING: Words stricken are deletions; words underlined are additions.
	2008	+	hb0253-01-c1
	2009	+	Page 55 of 68
	2010	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2011	+
	2012	+
	2013	+
2127	2014		810.02(4)(a) 3rd Burglary, or attempted
2128	2015		burglary, of an unoccupied
2129	2016		structure; unarmed; no assault
2130	2017		or battery.
2131		-	~~1361~~
	2018	+	1284
2132	2019		810.02(4)(b) 3rd Burglary, or attempted
2133	2020		burglary, of an unoccupied
2134	2021		conveyance; unarmed; no assault
2135	2022		or battery.
2136		-	~~1362~~
	2023	+	1285
2137	2024		810.06 3rd Burglary; possession of tools.
2138		-	~~1363~~
	2025	+	1286
2139	2026		810.08(2)(c) 3rd Trespass on property, armed
2140	2027		with firearm or dangerous
2141	2028		weapon.
2142		-	~~1364~~
	2029	+	1287
2143	2030		812.014(2)(c)3. 3rd Grand theft, 3rd degree $10,000
2144	2031		or more but less than $20,000.
2145		-	~~1365~~
	2032	+	1288
2146	2033		812.014
2147	2034		(2)(c)4.-10.
2148	2035		3rd Grand theft, 3rd degree;
2149	2036		specified items.
2150		-	~~1366~~
	2037	+	1289
2151	2038		812.0195(2) 3rd Dealing in stolen property by
2152		-
2153		-	CS/CS/HB 253 2023
2154		-
2155		-
2156		-
2157		-	CODING: Words stricken are deletions; words underlined are additions.
2158		-	hb0253-02-c2
2159		-	Page 59 of 71
2160		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2161		-
2162		-
2163		-
2164	2039		use of the Internet; property
2165	2040		stolen $300 or more.
2166		-	1367
	2041	+
	2042	+	CS/HB 253 2023
	2043	+
	2044	+
	2045	+
	2046	+	CODING: Words stricken are deletions; words underlined are additions.
	2047	+	hb0253-01-c1
	2048	+	Page 56 of 68
	2049	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2050	+
	2051	+
	2052	+
	2053	+	1290
2167	2054		817.505(4)(a) 3rd Patient brokering.
2168		-	~~1368~~
	2055	+	1291
2169	2056		817.563(1) 3rd Sell or deliver substance other
2170	2057		than controlled substance
2171	2058		agreed upon, excluding s.
2172	2059		893.03(5) drugs.
2173		-	~~1369~~
	2060	+	1292
2174	2061		817.568(2)(a) 3rd Fraudulent use of personal
2175	2062		identification information.
2176		-	~~1370~~
	2063	+	1293
2177	2064		817.625(2)(a) 3rd Fraudulent use of scanning
2178	2065		device, skimming device, or
2179	2066		reencoder.
2180		-	~~1371~~
	2067	+	1294
2181	2068		817.625(2)(c) 3rd Possess, sell, or deliver
2182	2069		skimming device.
2183		-	~~1372~~
	2070	+	1295
2184	2071		828.125(1) 2nd Kill, maim, or cause great
2185	2072		bodily harm or permanent
2186	2073		breeding disability to any
2187	2074		registered horse or cattle.
2188		-	1373
2189		-
2190		-	CS/CS/HB 253 2023
2191		-
2192		-
2193		-
2194		-	CODING: Words stricken are deletions; words underlined are additions.
2195		-	hb0253-02-c2
2196		-	Page 60 of 71
2197		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2198		-
2199		-
2200		-
	2075	+	1296
2201	2076		836.14(2) 3rd Person who commits theft of a
2202	2077		sexually explicit image with
	2078	+
	2079	+	CS/HB 253 2023
	2080	+
	2081	+
	2082	+
	2083	+	CODING: Words stricken are deletions; words underlined are additions.
	2084	+	hb0253-01-c1
	2085	+	Page 57 of 68
	2086	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2087	+
	2088	+
	2089	+
2203	2090		intent to promote it.
2204		-	~~1374~~
	2091	+	1297
2205	2092		836.14(3) 3rd Person who willfully possesses
2206	2093		a sexually explicit image with
2207	2094		certain knowledge, intent, and
2208	2095		purpose.
2209		-	~~1375~~
	2096	+	1298
2210	2097		837.02(1) 3rd Perjury in official
2211	2098		proceedings.
2212		-	~~1376~~
	2099	+	1299
2213	2100		837.021(1) 3rd Make contradictory statements
2214	2101		in official proceedings.
2215		-	~~1377~~
	2102	+	1300
2216	2103		838.022 3rd Official misconduct.
2217		-	~~1378~~
	2104	+	1301
2218	2105		839.13(2)(a) 3rd Falsifying records of an
2219	2106		individual in the care and
2220	2107		custody of a state agency.
2221		-	~~1379~~
	2108	+	1302
2222	2109		839.13(2)(c) 3rd Falsifying records of the
2223	2110		Department of Children and
2224	2111		Families.
2225		-	1380
2226		-
2227		-	CS/CS/HB 253 2023
2228		-
2229		-
2230		-
2231		-	CODING: Words stricken are deletions; words underlined are additions.
2232		-	hb0253-02-c2
2233		-	Page 61 of 71
2234		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2235		-
2236		-
2237		-
	2112	+	1303
2238	2113		843.021 3rd Possession of a concealed
2239	2114		handcuff key by a person in
	2115	+
	2116	+	CS/HB 253 2023
	2117	+
	2118	+
	2119	+
	2120	+	CODING: Words stricken are deletions; words underlined are additions.
	2121	+	hb0253-01-c1
	2122	+	Page 58 of 68
	2123	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2124	+
	2125	+
	2126	+
2240	2127		custody.
2241		-	~~1381~~
	2128	+	1304
2242	2129		843.025 3rd Deprive law enforcement,
2243	2130		correctional, or correctional
2244	2131		probation officer of means of
2245	2132		protection or communication.
2246		-	~~1382~~
	2133	+	1305
2247	2134		843.15(1)(a) 3rd Failure to appear while on bail
2248	2135		for felony (bond estreature or
2249	2136		bond jumping).
2250		-	~~1383~~
	2137	+	1306
2251	2138		847.0135(5)(c) 3rd Lewd or lascivious exhibition
2252	2139		using computer; offender less
2253	2140		than 18 years.
2254		-	~~1384~~
	2141	+	1307
2255	2142		870.01(3) 2nd Aggravated rioting.
2256		-	~~1385~~
	2143	+	1308
2257	2144		870.01(5) 2nd Aggravated inciting a riot.
2258		-	~~1386~~
	2145	+	1309
2259	2146		874.05(1)(a) 3rd Encouraging or recruiting
2260	2147		another to join a criminal
2261	2148		gang.
2262		-	1387
2263		-
2264		-	CS/CS/HB 253 2023
2265		-
2266		-
2267		-
2268		-	CODING: Words stricken are deletions; words underlined are additions.
2269		-	hb0253-02-c2
2270		-	Page 62 of 71
2271		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2272		-
2273		-
2274		-
	2149	+	1310
2275	2150		893.13(2)(a)1. 2nd Purchase of cocaine (or other
2276	2151		s. 893.03(1)(a), (b), or (d),
	2152	+
	2153	+	CS/HB 253 2023
	2154	+
	2155	+
	2156	+
	2157	+	CODING: Words stricken are deletions; words underlined are additions.
	2158	+	hb0253-01-c1
	2159	+	Page 59 of 68
	2160	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2161	+
	2162	+
	2163	+
2277	2164		(2)(a), (2)(b), or (2)(c)5.
2278	2165		drugs).
2279		-	~~1388~~
	2166	+	1311
2280	2167		914.14(2) 3rd Witnesses accepting bribes.
2281		-	~~1389~~
	2168	+	1312
2282	2169		914.22(1) 3rd Force, threaten, etc., witness,
2283	2170		victim, or informant.
2284		-	~~1390~~
	2171	+	1313
2285	2172		914.23(2) 3rd Retaliation against a witness,
2286	2173		victim, or informant, no bodily
2287	2174		injury.
2288		-	~~1391~~
	2175	+	1314
2289	2176		916.1085
2290	2177		(2)(c)1.
2291	2178		3rd Introduction of specified
2292	2179		contraband into certain DCF
2293	2180		facilities.
2294		-	~~1392~~
	2181	+	1315
2295	2182		918.12 3rd Tampering with jurors.
2296		-	~~1393~~
	2183	+	1316
2297	2184		934.215 3rd Use of two-way communications
2298	2185		device to facilitate commission
2299	2186		of a crime.
2300		-	~~1394~~
	2187	+	1317
2301	2188		944.47(1)(a)6. 3rd Introduction of contraband
2302		-
2303		-	CS/CS/HB 253 2023
2304		-
2305		-
2306		-
2307		-	CODING: Words stricken are deletions; words underlined are additions.
2308		-	hb0253-02-c2
2309		-	Page 63 of 71
2310		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2311		-
2312		-
2313		-
2314	2189		(cellular telephone or other
2315	2190		portable communication device)
	2191	+
	2192	+	CS/HB 253 2023
	2193	+
	2194	+
	2195	+
	2196	+	CODING: Words stricken are deletions; words underlined are additions.
	2197	+	hb0253-01-c1
	2198	+	Page 60 of 68
	2199	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2200	+
	2201	+
	2202	+
2316	2203		into correctional institution.
2317		-	~~1395~~
	2204	+	1318
2318	2205		951.22(1)(h),
2319	2206		(j) & (k)
2320	2207		3rd Intoxicating drug,
2321	2208		instrumentality or other device
2322	2209		to aid escape, or cellular
2323	2210		telephone or other portable
2324	2211		communication device introduced
2325	2212		into county detention facility.
2326		-	1396
2327		-	1397
2328		-	1398
2329		-	1399
2330		-	Section 13. Section 517.1215, Florida Statutes, is amended 1400
2331		-	to read: 1401
2332		-	517.1215 Requirements, rules of conduct, and prohibited 1402
2333		-	business practices for investment advisers advisors and their 1403
2334		-	associated persons.— 1404
2335		-	(1) The commission shall specify by rule requirements for 1405
2336		-	investment advisers advisors deemed to have custody of clien t 1406
2337		-	funds which concern the following: 1407
2338		-	(a) Notification of custody of, maintenance of, and 1408
2339		-	safeguards for client funds. 1409
2340		-	(b) Communications with clients and independent 1410
2341		-
2342		-	CS/CS/HB 253 2023
2343		-
2344		-
2345		-
2346		-	CODING: Words stricken are deletions; words underlined are additions.
2347		-	hb0253-02-c2
2348		-	Page 64 of 71
2349		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2350		-
2351		-
2352		-
2353		-	representatives. 1411
2354		-	(c) Requirements for investment advisers who have custody 1412
2355		-	of pooled investments. 1413
2356		-	(d) Exceptions to the custody requirements. 1414
2357		-	1415
2358		-	In adopting the rules, the commission shall consider the rules 1416
2359		-	and regulations of the federal regulatory authority and the 1417
2360		-	North American Securities Administrators Association , Inc. 1418
2361		-	(2) The commission shall by rule establish rules of 1419
2362		-	conduct and prohibited business practices for investment 1420
2363		-	advisers and their associated persons. In adopting the rules, 1421
2364		-	the commission shall consider general industry standards as 1422
2365		-	expressed in the rules and regulatio ns of the various federal 1423
2366		-	and self-regulatory agencies and regulatory associations, 1424
2367		-	including, but not limited to, the United States Securities and 1425
2368		-	Exchange Commission, the Financial Industry Regulatory 1426
2369		-	Authority, and the North American Securities Administ rators 1427
2370		-	Association, Inc. 1428
2371		-	Section 14. Subsections (18) and (22) of section 517.061, 1429
2372		-	Florida Statutes, are amended to read: 1430
2373		-	517.061 Exempt transactions. —Except as otherwise provided 1431
2374		-	in s. 517.0611 for a transaction listed in subsection (21), the 1432
2375		-	exemption for each transaction listed below is self -executing 1433
2376		-	and does not require any filing with the office before claiming 1434
2377		-	the exemption. Any person who claims entitlement to any of the 1435
2378		-
2379		-	CS/CS/HB 253 2023
2380		-
2381		-
2382		-
2383		-	CODING: Words stricken are deletions; words underlined are additions.
2384		-	hb0253-02-c2
2385		-	Page 65 of 71
2386		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2387		-
2388		-
2389		-
2390		-	exemptions bears the burden of proving such entitlement in any 1436
2391		-	proceeding brought under this chapter. The registration 1437
2392		-	provisions of s. 517.07 do not apply to any of the following 1438
2393		-	transactions; however, such transactions are subject to the 1439
2394		-	provisions of ss. 517.301, 517.311, and 517.312: 1440
2395		-	(18) The offer or sale of any security effected by or 1441
2396		-	through a person in compliance with s. 517.12(16) s. 517.12(17). 1442
2397		-	(22) The offer or sale of securities, solely in connection 1443
2398		-	with the transfer of ownership of an eligible privately held 1444
2399		-	company, through a merger and acquisition broker in a ccordance 1445
2400		-	with s. 517.12(21) s. 517.12(22). 1446
2401		-	Section 15. Paragraph (b) of subsection (4) and subsection 1447
2402		-	(14) of section 517.0611, Florida Statutes, are amended to read: 1448
2403		-	517.0611 Intrastate crowdfunding. — 1449
2404		-	(4) An issuer must: 1450
2405		-	(b) Conduct transaction s for the offering through a dealer 1451
2406		-	registered with the office or an intermediary registered under 1452
2407		-	s. 517.12(19) s. 517.12(20). 1453
2408		-	(14) An intermediary not registered as a dealer under s. 1454
2409		-	517.12(5) s. 517.12(6) may not: 1455
2410		-	(a) Offer investment advice or reco mmendations. A refusal 1456
2411		-	by an intermediary to post an offering that it deems not 1457
2412		-	credible or that represents a potential for fraud may not be 1458
2413		-	construed as an offer of investment advice or recommendation. 1459
2414		-	(b) Solicit purchases, sales, or offers to buy secu rities 1460
2415		-
2416		-	CS/CS/HB 253 2023
2417		-
2418		-
2419		-
2420		-	CODING: Words stricken are deletions; words underlined are additions.
2421		-	hb0253-02-c2
2422		-	Page 66 of 71
2423		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2424		-
2425		-
2426		-
2427		-	offered or displayed on its website. 1461
2428		-	(c) Compensate employees, agents, or other persons for the 1462
2429		-	solicitation of, or based on the sale of, securities offered or 1463
2430		-	displayed on its website. 1464
2431		-	(d) Hold, manage, possess, or otherwise handle investor 1465
2432		-	funds or securities. 1466
2433		-	(e) Compensate promoters, finders, or lead generators for 1467
2434		-	providing the intermediary with the personal identifying 1468
2435		-	information of any potential investor. 1469
2436		-	(f) Engage in any other activities set forth by commission 1470
2437		-	rule. 1471
2438		-	Section 16. Subsection (1) of section 517.075, Florida 1472
2439		-	Statutes, is amended to read: 1473
2440		-	517.075 Cuba, prospectus disclosure of doing business 1474
2441		-	with, required.— 1475
2442		-	(1) Any issuer of securities that will be sold in this 1476
2443		-	state pursuant to a prospectus must disclose in the prospectus 1477
2444		-	if the issuer or any affiliate thereof , as defined in s. 1478
2445		-	517.021(1), does business with the government of Cuba or with 1479
2446		-	any person or affiliate located in Cuba. The prospectus 1480
2447		-	disclosure required by this subsection does not apply with 1481
2448		-	respect to prospectuses prepared before April 10, 1992. 1482
2449		-	Section 17. Paragraph (a) of subsection (1) of section 1483
2450		-	517.131, Florida Statutes, is amended to read: 1484
2451		-	517.131 Securities Guaranty Fund. — 1485
2452		-
2453		-	CS/CS/HB 253 2023
2454		-
2455		-
2456		-
2457		-	CODING: Words stricken are deletions; words underlined are additions.
2458		-	hb0253-02-c2
2459		-	Page 67 of 71
2460		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2461		-
2462		-
2463		-
2464		-	(1)(a) The Chief Financial Officer shall establish a 1486
2465		-	Securities Guaranty Fund. An amount not exceeding 20 percent of 1487
2466		-	all revenues received as assessment fees pursuant to s. 1488
2467		-	517.12(9) and (10) s. 517.12(10) and (11) for dealers and 1489
2468		-	investment advisers or s. 517.1201 for federal covered advisers 1490
2469		-	and an amount not exceeding 10 percent of all revenues received 1491
2470		-	as assessment fees pursuant to s. 517.12(9) and (10) s. 1492
2471		-	517.12(10) and (11) for associated persons shall be part of the 1493
2472		-	regular license fee and shall be transferred to or deposited in 1494
2473		-	the Securities Guaranty Fund. 1495
2474		-	Section 18. Subsection (1) of section 517.211, Florida 1496
2475		-	Statutes, is amended to read: 1497
2476		-	517.211 Remedies available in cases of unlawful sale. — 1498
2477		-	(1) Every sale made in violation of either s. 517.07 or s. 1499
2478		-	517.12(1), (3), (4), (8), (10), (12), (15), or (17) (4), (5), 1500
2479		-	(9), (11), (13), (16), or (18) may be rescinded at the election 1501
2480		-	of the purchaser, except a sale made in violation of the 1502
2481		-	provisions of s. 517.1202(3) relating to a renewal of a branch 1503
2482		-	office notification shall not be subject to this section, and a 1504
2483		-	sale made in violation of the provisions of s. 517.12(12) s. 1505
2484		-	517.12(13) relating to filing a change of address amendment 1506
2485		-	shall not be subject to this section. Each person making the 1507
2486		-	sale and every director, officer, partner, or agent of or for 1508
2487		-	the seller, if the director, officer, partner, or agent has 1509
2488		-	personally participated or aided in making the sale, is jointly 1510
2489		-
2490		-	CS/CS/HB 253 2023
2491		-
2492		-
2493		-
2494		-	CODING: Words stricken are deletions; words underlined are additions.
2495		-	hb0253-02-c2
2496		-	Page 68 of 71
2497		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2498		-
2499		-
2500		-
2501		-	and severally liable to the purchaser in an action for 1511
2502		-	rescission, if the purchaser still owns the security, or for 1512
2503		-	damages, if the purchaser has sold the security. No purchaser 1513
2504		-	otherwise entitled will have the benefit of this subsection who 1514
2505		-	has refused or failed, within 30 days of receipt, to accept an 1515
2506		-	offer made in writing by the seller, if the purchaser has not 1516
2507		-	sold the security, to take back the security in question and to 1517
2508		-	refund the full amount paid by the purchaser or, if the 1518
2509		-	purchaser has sold the security, to pay the purchaser an amount 1519
2510		-	equal to the difference between the amount paid for the security 1520
2511		-	and the amount received by the purchas er on the sale of the 1521
2512		-	security, together, in either case, with interest on the full 1522
2513		-	amount paid for the security by the purchaser at the legal rate, 1523
2514		-	pursuant to s. 55.03, for the period from the date of payment by 1524
2515		-	the purchaser to the date of repayment, le ss the amount of any 1525
2516		-	income received by the purchaser on the security. 1526
2517		-	Section 19. Section 517.315, Florida Statutes, is amended 1527
2518		-	to read: 1528
2519		-	517.315 Fees.—All fees of any nature collected by the 1529
2520		-	office pursuant to this chapter shall be disbursed as follows: 1530
2521		-	(1) The office shall transfer the amount of fees required 1531
2522		-	to be deposited into the Securities Guaranty Fund pursuant to s. 1532
2523		-	517.131.; 1533
2524		-	(2) After the transfer required in subsection (1), the 1534
2525		-	office shall transfer the $50 assessment fee collected from each 1535
2526		-
2527		-	CS/CS/HB 253 2023
2528		-
2529		-
2530		-
2531		-	CODING: Words stricken are deletions; words underlined are additions.
2532		-	hb0253-02-c2
2533		-	Page 69 of 71
2534		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2535		-
2536		-
2537		-
2538		-	associated person under s. 517.12(9) and (10) s. 517.12(10) and 1536
2539		-	(11) and 30.44 percent of the $100 assessment fee paid by 1537
2540		-	dealers and investment advisers advisors for each office in the 1538
2541		-	state under s. 517.12(9) and (10) s. 517.12(10) and (11) to the 1539
2542		-	Regulatory Trust Fund .; and 1540
2543		-	(3) All remaining fees shall be deposited into the General 1541
2544		-	Revenue Fund. 1542
2545		-	Section 20. Subsection (5) of section 626.9911, Florida 1543
2546		-	Statutes, is amended to read: 1544
2547		-	626.9911 Definitions. —As used in this act, the term: 1545
2548		-	(5) "Life expectancy provider" means a person who 1546
2549		-	determines, or holds himself or herself out as determining, life 1547
2550		-	expectancies or mortality ratings used to determine life 1548
2551		-	expectancies: 1549
2552		-	(a) On behalf of a viatical settlement provider, viatical 1550
2553		-	settlement broker, life agent, or person engaged in the business 1551
2554		-	of viatical settlements; 1552
2555		-	(b) In connection with a viatical settlement investment as 1553
2556		-	defined in s. 517.021 , pursuant to s. 517.021(24) ; or 1554
2557		-	(c) On residents of this state in connection with a 1555
2558		-	viatical settlement contract or viatical settlement investment. 1556
2559		-	Section 21. Subsection (6) of section 744.351, Florida 1557
2560		-	Statutes, is amended to read: 1558
2561		-	744.351 Bond of guardian. — 1559
2562		-	(6) When it is expedient in the judgment of any court 1560
2563		-
2564		-	CS/CS/HB 253 2023
2565		-
2566		-
2567		-
2568		-	CODING: Words stricken are deletions; words underlined are additions.
2569		-	hb0253-02-c2
2570		-	Page 70 of 71
2571		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2572		-
2573		-
2574		-
2575		-	having jurisdiction of any guardianship property, because the 1561
2576		-	size of the bond required of the guardian is burdensome, or for 1562
2577		-	other cause, the court may order, in lieu of a bond or in 1563
2578		-	addition to a lesser bond, that the guardian place all or part 1564
2579		-	of the property of the ward in a des ignated financial 1565
2580		-	institution under the same conditions and limitations as are 1566
2581		-	contained in s. 69.031. A designated financial institution shall 1567
2582		-	also include a dealer , as defined in s. 517.021 s. 517.021(6), 1568
2583		-	if the dealer is a member of the Security Investm ent Protection 1569
2584		-	Corporation and is doing business in the state. 1570
2585		-	Section 22. Section 517.1205, Florida Statutes, is amended 1571
2586		-	to read: 1572
2587		-	517.1205 Registration of associated persons specific as to 1573
2588		-	securities dealer, investment adviser, or federal covered 1574
2589		-	adviser identified at time of registration approval. —Inasmuch as 1575
2590		-	this chapter is intended to protect investors in securities 1576
2591		-	offerings and other investment transactions regulated by that 1577
2592		-	chapter, its provisions are to be construed to require full and 1578
2593		-	fair disclosure of all, but only, those matters material to the 1579
2594		-	investor's evaluation of the offering or other transaction. It 1580
2595		-	should, furthermore, be construed to impose the standards 1581
2596		-	provided by law on all those seeking to participate in the 1582
2597		-	state's securities industry through registration as a securities 1583
2598		-	dealer, investment adviser, or associated person. To this end, 1584
2599		-	it is declared to be the intent of the Legislature that the 1585
2600		-
2601		-	CS/CS/HB 253 2023
2602		-
2603		-
2604		-
2605		-	CODING: Words stricken are deletions; words underlined are additions.
2606		-	hb0253-02-c2
2607		-	Page 71 of 71
2608		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
2609		-
2610		-
2611		-
2612		-	registration of associated persons required by law is specific 1586
2613		-	to the securities dealer , investment adviser, or federal covered 1587
2614		-	adviser identified at the time such registration is approved. 1588
2615		-	Notwithstanding any interpretation of law to the contrary, the 1589
2616		-	historical practice of the Department of Banking and Finance, 1590
2617		-	reflected in its rules, that requires a new application for 1591
2618		-	registration from a previously registered associated person when 1592
2619		-	that person seeks to be associated with a new securities dealer 1593
2620		-	or investment adviser is hereby ratified and approved as 1594
2621		-	consistent with legislative intent. It is, finally, declared to 1595
2622		-	be the intent of the Legislature that while approval of an 1596
2623		-	application for registration of a securities dealer, investment 1597
2624		-	adviser, or associated person requires a finding of compliance 1598
2625		-	with the applicable registration provisions of this chapter and 1599
2626		-	applicable rules the applicant's good repute and character , such 1600
2627		-	finding is precluded by a determination that the applicant may 1601
2628		-	be denied registration on grounds provided by law. 1602
2629		-	Section 23. This act shall take effect October 1, 2023. 1603
	2213	+	1319
	2214	+	Section 13. Section 517.1215, Florida Statutes, is amended 1320
	2215	+	to read: 1321
	2216	+	517.1215 Requirements, rules of conduct, and prohibited 1322
	2217	+	business practices for investm ent advisers advisors and their 1323
	2218	+	associated persons.— 1324
	2219	+	(1) The commission shall specify by rule requirements for 1325
	2220	+	investment advisers advisors deemed to have custody of client 1326
	2221	+	funds which concern the following: 1327
	2222	+	(a) Notification of custody of, maintenance of, and 1328
	2223	+	safeguards for client funds. 1329
	2224	+	(b) Communications with clients and independent 1330
	2225	+	representatives. 1331
	2226	+	(c) Requirements for investment advisers who have custody 1332
	2227	+	of pooled investments. 1333
	2228	+	(d) Exceptions to the custody requirements. 1334
	2229	+	1335
	2230	+
	2231	+	CS/HB 253 2023
	2232	+
	2233	+
	2234	+
	2235	+	CODING: Words stricken are deletions; words underlined are additions.
	2236	+	hb0253-01-c1
	2237	+	Page 61 of 68
	2238	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2239	+
	2240	+
	2241	+
	2242	+	In adopting the rules, the commission shall consider the rules 1336
	2243	+	and regulations of the federal regulatory authority and the 1337
	2244	+	North American Securities Administrators Association , Inc. 1338
	2245	+	(2) The commission shall by rule establish rules of 1339
	2246	+	conduct and prohibited business practices for investment 1340
	2247	+	advisers and their associated persons. In adopting the rules, 1341
	2248	+	the commission shall consider general industry standards as 1342
	2249	+	expressed in the rules and regulations of the various federal 1343
	2250	+	and self-regulatory agencies and regulatory associations, 1344
	2251	+	including, but not limited to, the United States Securities and 1345
	2252	+	Exchange Commission, the Financial Industry Regulatory 1346
	2253	+	Authority, and the North American Securities Administrators 1347
	2254	+	Association, Inc. 1348
	2255	+	Section 14. Subsections (18) and (22) of section 517.0 61, 1349
	2256	+	Florida Statutes, are amended to read: 1350
	2257	+	517.061 Exempt transactions. —Except as otherwise provided 1351
	2258	+	in s. 517.0611 for a transaction listed in subsection (21), the 1352
	2259	+	exemption for each transaction listed below is self -executing 1353
	2260	+	and does not require any fi ling with the office before claiming 1354
	2261	+	the exemption. Any person who claims entitlement to any of the 1355
	2262	+	exemptions bears the burden of proving such entitlement in any 1356
	2263	+	proceeding brought under this chapter. The registration 1357
	2264	+	provisions of s. 517.07 do not apply to any of the following 1358
	2265	+	transactions; however, such transactions are subject to the 1359
	2266	+	provisions of ss. 517.301, 517.311, and 517.312: 1360
	2267	+
	2268	+	CS/HB 253 2023
	2269	+
	2270	+
	2271	+
	2272	+	CODING: Words stricken are deletions; words underlined are additions.
	2273	+	hb0253-01-c1
	2274	+	Page 62 of 68
	2275	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2276	+
	2277	+
	2278	+
	2279	+	(18) The offer or sale of any security effected by or 1361
	2280	+	through a person in compliance with s. 517.12(16) s. 517.12(17). 1362
	2281	+	(22) The offer or sale of securities, solely in connection 1363
	2282	+	with the transfer of ownership of an eligible privately held 1364
	2283	+	company, through a merger and acquisition broker in accordance 1365
	2284	+	with s. 517.12(21) s. 517.12(22). 1366
	2285	+	Section 15. Paragraph (b) of subse ction (4) and subsection 1367
	2286	+	(14) of section 517.0611, Florida Statutes, are amended to read: 1368
	2287	+	517.0611 Intrastate crowdfunding. — 1369
	2288	+	(4) An issuer must: 1370
	2289	+	(b) Conduct transactions for the offering through a dealer 1371
	2290	+	registered with the office or an intermediary registered under 1372
	2291	+	s. 517.12(19) s. 517.12(20). 1373
	2292	+	(14) An intermediary not registered as a dealer under s. 1374
	2293	+	517.12(5) s. 517.12(6) may not: 1375
	2294	+	(a) Offer investment advice or recommendations. A refusal 1376
	2295	+	by an intermediary to post an offering that it deems not 1377
	2296	+	credible or that represents a potential for fraud may not be 1378
	2297	+	construed as an offer of investment advice or recommendation. 1379
	2298	+	(b) Solicit purchases, sales, or offers to buy securities 1380
	2299	+	offered or displayed on its website. 1381
	2300	+	(c) Compensate employees, agents, or other persons for the 1382
	2301	+	solicitation of, or based on the sale of, securities offered or 1383
	2302	+	displayed on its website. 1384
	2303	+	(d) Hold, manage, possess, or otherwise handle investor 1385
	2304	+
	2305	+	CS/HB 253 2023
	2306	+
	2307	+
	2308	+
	2309	+	CODING: Words stricken are deletions; words underlined are additions.
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	2312	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2313	+
	2314	+
	2315	+
	2316	+	funds or securities. 1386
	2317	+	(e) Compensate promoters, finders, or lead generators for 1387
	2318	+	providing the intermediary with the personal identifying 1388
	2319	+	information of any potential investor. 1389
	2320	+	(f) Engage in any other activities set forth by commission 1390
	2321	+	rule. 1391
	2322	+	Section 16. Subsection (1) of section 517.075, Florida 1392
	2323	+	Statutes, is amended to read: 1393
	2324	+	517.075 Cuba, prospectus disclosure of doing business 1394
	2325	+	with, required.— 1395
	2326	+	(1) Any issuer of securities that will be sold in this 1396
	2327	+	state pursuant to a prospectus must disclose in the prospectus 1397
	2328	+	if the issuer or any affiliate thereof , as defined in s. 1398
	2329	+	517.021(1), does business with the government of Cuba or with 1399
	2330	+	any person or affiliate located in Cuba. The prospectus 1400
	2331	+	disclosure required by this subsection does not apply with 1401
	2332	+	respect to prospectuses prepared before April 10, 1992. 1402
	2333	+	Section 17. Paragraph (a) of su bsection (1) of section 1403
	2334	+	517.131, Florida Statutes, is amended to read: 1404
	2335	+	517.131 Securities Guaranty Fund. — 1405
	2336	+	(1)(a) The Chief Financial Officer shall establish a 1406
	2337	+	Securities Guaranty Fund. An amount not exceeding 20 percent of 1407
	2338	+	all revenues received as asse ssment fees pursuant to s. 1408
	2339	+	517.12(9) and (10) s. 517.12(10) and (11) for dealers and 1409
	2340	+	investment advisers or s. 517.1201 for federal covered advisers 1410
	2341	+
	2342	+	CS/HB 253 2023
	2343	+
	2344	+
	2345	+
	2346	+	CODING: Words stricken are deletions; words underlined are additions.
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	2349	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2350	+
	2351	+
	2352	+
	2353	+	and an amount not exceeding 10 percent of all revenues received 1411
	2354	+	as assessment fees pursuant to s. 517.12(9) and (10) s. 1412
	2355	+	517.12(10) and (11) for associated persons shall be part of the 1413
	2356	+	regular license fee and shall be transferred to or deposited in 1414
	2357	+	the Securities Guaranty Fund. 1415
	2358	+	Section 18. Subsection (1) of section 517.211, Florida 1416
	2359	+	Statutes, is amended to re ad: 1417
	2360	+	517.211 Remedies available in cases of unlawful sale. — 1418
	2361	+	(1) Every sale made in violation of either s. 517.07 or s. 1419
	2362	+	517.12(1), (3), (4), (8), (10), (12), (15), or (17) (4), (5), 1420
	2363	+	(9), (11), (13), (16), or (18) may be rescinded at the election 1421
	2364	+	of the purchaser, except a sale made in violation of the 1422
	2365	+	provisions of s. 517.1202(3) relating to a renewal of a branch 1423
	2366	+	office notification shall not be subject to this section, and a 1424
	2367	+	sale made in violation of the provisions of s. 517.12(12) s. 1425
	2368	+	517.12(13) relating to filing a change of address amendment 1426
	2369	+	shall not be subject to this section. Each person making the 1427
	2370	+	sale and every director, officer, partner, or agent of or for 1428
	2371	+	the seller, if the director, officer, partner, or agent has 1429
	2372	+	personally participated or aided in making the sale, is jointly 1430
	2373	+	and severally liable to the purchaser in an action for 1431
	2374	+	rescission, if the purchaser still owns the security, or for 1432
	2375	+	damages, if the purchaser has sold the security. No purchaser 1433
	2376	+	otherwise entitled will have the benefit of th is subsection who 1434
	2377	+	has refused or failed, within 30 days of receipt, to accept an 1435
	2378	+
	2379	+	CS/HB 253 2023
	2380	+
	2381	+
	2382	+
	2383	+	CODING: Words stricken are deletions; words underlined are additions.
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	2386	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2387	+
	2388	+
	2389	+
	2390	+	offer made in writing by the seller, if the purchaser has not 1436
	2391	+	sold the security, to take back the security in question and to 1437
	2392	+	refund the full amount paid by the purchaser or, if the 1438
	2393	+	purchaser has sold the security, to pay the purchaser an amount 1439
	2394	+	equal to the difference between the amount paid for the security 1440
	2395	+	and the amount received by the purchaser on the sale of the 1441
	2396	+	security, together, in either case, with interest on the ful l 1442
	2397	+	amount paid for the security by the purchaser at the legal rate, 1443
	2398	+	pursuant to s. 55.03, for the period from the date of payment by 1444
	2399	+	the purchaser to the date of repayment, less the amount of any 1445
	2400	+	income received by the purchaser on the security. 1446
	2401	+	Section 19. Section 517.315, Florida Statutes, is amended 1447
	2402	+	to read: 1448
	2403	+	517.315 Fees.—All fees of any nature collected by the 1449
	2404	+	office pursuant to this chapter shall be disbursed as follows: 1450
	2405	+	(1) The office shall transfer the amount of fees required 1451
	2406	+	to be deposited into the Securities Guaranty Fund pursuant to s. 1452
	2407	+	517.131.; 1453
	2408	+	(2) After the transfer required in subsection (1), the 1454
	2409	+	office shall transfer the $50 assessment fee collected from each 1455
	2410	+	associated person under s. 517.12(9) and (10) s. 517.12(10) and 1456
	2411	+	(11) and 30.44 percent of the $100 assessment fee paid by 1457
	2412	+	dealers and investment advisers advisors for each office in the 1458
	2413	+	state under s. 517.12(9) and (10) s. 517.12(10) and (11) to the 1459
	2414	+	Regulatory Trust Fund .; and 1460
	2415	+
	2416	+	CS/HB 253 2023
	2417	+
	2418	+
	2419	+
	2420	+	CODING: Words stricken are deletions; words underlined are additions.
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	2423	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2424	+
	2425	+
	2426	+
	2427	+	(3) All remaining fees shall be deposited into the G eneral 1461
	2428	+	Revenue Fund. 1462
	2429	+	Section 20. Subsection (5) of section 626.9911, Florida 1463
	2430	+	Statutes, is amended to read: 1464
	2431	+	626.9911 Definitions. —As used in this act, the term: 1465
	2432	+	(5) "Life expectancy provider" means a person who 1466
	2433	+	determines, or holds himself or herself out as determining, life 1467
	2434	+	expectancies or mortality ratings used to determine life 1468
	2435	+	expectancies: 1469
	2436	+	(a) On behalf of a viatical settlement provider, viatical 1470
	2437	+	settlement broker, life agent, or person engaged in the business 1471
	2438	+	of viatical settlements; 1472
	2439	+	(b) In connection with a viatical settlement investment as 1473
	2440	+	defined in s. 517.021 , pursuant to s. 517.021(24) ; or 1474
	2441	+	(c) On residents of this state in connection with a 1475
	2442	+	viatical settlement contract or viatical settlement investment. 1476
	2443	+	Section 21. Subsectio n (6) of section 744.351, Florida 1477
	2444	+	Statutes, is amended to read: 1478
	2445	+	744.351 Bond of guardian. — 1479
	2446	+	(6) When it is expedient in the judgment of any court 1480
	2447	+	having jurisdiction of any guardianship property, because the 1481
	2448	+	size of the bond required of the guardian is burdensome, or for 1482
	2449	+	other cause, the court may order, in lieu of a bond or in 1483
	2450	+	addition to a lesser bond, that the guardian place all or part 1484
	2451	+	of the property of the ward in a designated financial 1485
	2452	+
	2453	+	CS/HB 253 2023
	2454	+
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	2456	+
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	2460	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2461	+
	2462	+
	2463	+
	2464	+	institution under the same conditions and limitations as are 1486
	2465	+	contained in s. 69.031. A designated financial institution shall 1487
	2466	+	also include a dealer , as defined in s. 517.021 s. 517.021(6), 1488
	2467	+	if the dealer is a member of the Security Investment Protection 1489
	2468	+	Corporation and is doing business in the state. 1490
	2469	+	Section 22. Section 517.1205, Florida Statutes, is amended 1491
	2470	+	to read: 1492
	2471	+	517.1205 Registration of associated persons specific as to 1493
	2472	+	securities dealer, investment adviser, or federal covered 1494
	2473	+	adviser identified at time of registration approval. —Inasmuch as 1495
	2474	+	this chapter is intended to protect investors in securities 1496
	2475	+	offerings and other investment transactions regulated by that 1497
	2476	+	chapter, its provisions are to be construed to require full and 1498
	2477	+	fair disclosure of all, but only, those matters material to the 1499
	2478	+	investor's evaluation o f the offering or other transaction. It 1500
	2479	+	should, furthermore, be construed to impose the standards 1501
	2480	+	provided by law on all those seeking to participate in the 1502
	2481	+	state's securities industry through registration as a securities 1503
	2482	+	dealer, investment adviser, or ass ociated person. To this end, 1504
	2483	+	it is declared to be the intent of the Legislature that the 1505
	2484	+	registration of associated persons required by law is specific 1506
	2485	+	to the securities dealer, investment adviser, or federal covered 1507
	2486	+	adviser identified at the time such reg istration is approved. 1508
	2487	+	Notwithstanding any interpretation of law to the contrary, the 1509
	2488	+	historical practice of the Department of Banking and Finance, 1510
	2489	+
	2490	+	CS/HB 253 2023
	2491	+
	2492	+
	2493	+
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	2497	+	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
	2498	+
	2499	+
	2500	+
	2501	+	reflected in its rules, that requires a new application for 1511
	2502	+	registration from a previously registered associ ated person when 1512
	2503	+	that person seeks to be associated with a new securities dealer 1513
	2504	+	or investment adviser is hereby ratified and approved as 1514
	2505	+	consistent with legislative intent. It is, finally, declared to 1515
	2506	+	be the intent of the Legislature that while approval o f an 1516
	2507	+	application for registration of a securities dealer, investment 1517
	2508	+	adviser, or associated person requires a finding of compliance 1518
	2509	+	with the applicable registration provisions of this chapter and 1519
	2510	+	applicable rules the applicant's good repute and character , such 1520
	2511	+	finding is precluded by a determination that the applicant may 1521
	2512	+	be denied registration on grounds provided by law. 1522
	2513	+	Section 23. This act shall take effect October 1, 2023. 1523