For the second time this week, a state has revised its structured settlement protection act.
The Florida structured settlement protection act (SSPA), which first went into effect in 2001, has been revised, and the revised statute is effective immediately upon Governor Rick Scott’s signing of the legislation into law yesterday.
Earlier this week, Virginia’s governor signed into law a revised Virginia SSPA, and that state’s revised law will go into effect July 1. See yesterday’s post about the revised Virginia SSPA here.
Like the revised Virginia SSPA, the revised Florida statute has as its goals:
- Eliminating forum shopping by factoring companies (in a state where attempts at forum shopping has drawn a fair amount of attention and criticism);
- Requiring that payees appear in court to be available, among other reasons, for testimony on their best interests; and
- Making sure that the court has information about whether the payee previously sold any portions of payments.
And, again like the Virginia revised law, the Florida SSPA’s changes also include a new provision that recognizes the rights of interested parties to waive or enforce a contractual anti-assignment provision.
The revisions in Florida and Virginia are similar to those enacted last year in Illinois (see some of Secondary Insurance Market Blog’s previous posts about the revised Illinois SSPA here, here, here and here).
The revisions to the Florida SSPA are improvements that have the potential to make a positive impact in Florida, a state where factoring companies’ reputation for forum shopping has been the target of considerable criticism.
The full text of the revised statute is available here.