HB 483

1	A bill to be entitled
2	An act relating to investor protection; amending s. 16.56,
3	F.S.; expanding jurisdiction of the Office of Statewide
4	Prosecution to investigate and prosecute certain
5	additional offenses; amending s. 517.021, F.S.; revising
6	definitions; amending s. 517.072, F.S.; exempting certain
7	transactions in viatical settlement investments from
8	certain registration requirements; specifying application
9	of certain provisions; amending s. 517.12, F.S.; revising
10	requirements for registration of dealers, associated
11	persons, investment advisers, and branch offices,
12	including fingerprinting requirements; amending s.
13	517.121, F.S.; authorizing the Office of Financial
14	Regulation to suspend registration for registrant failure
15	to provide certain records; providing for rescinding
16	suspensions; amending ss. 517.1215 and 517.1217, F.S.;
17	changing an agency reference; amending s. 517.131, F.S.;
18	revising a Securities Guaranty Fund disbursement
19	requirement; amending s. 517.141, F.S.; excluding
20	postjudgment interest from payments from the fund;
21	amending s. 517.161, F.S.; expanding the class of persons
22	related to or associated with an applicant or registrant
23	for which certain violations may result in adverse actions
24	taken against registrations; authorizing the office to
25	suspend a registration under certain circumstances;
26	creating s. 517.1611, F.S.; requiring the Financial
27	Services Commission to adopt rules for imposing
28	registration sanctions for certain violations by
29	registrants and associated or related persons; requiring
30	the commission to adopt rules for disqualifying
31	registrants for certain periods of time for certain
32	criminal actions; providing rules criteria; amending s.
33	517.191, F.S.; authorizing the office to apply to the
34	court for orders directing restitution; authorizing the
35	office to apply to the court to impose civil penalties for
36	certain violations; specifying limitations; authorizing
37	the Attorney General, with approval of the office, to
38	investigate and enforce certain provisions; authorizing
39	the Attorney General to bring certain actions for
40	injunctive relief; authorizing the Attorney General to
41	recover certain investigation and enforcement costs and
42	attorney fees; providing for deposit of certain recovered
43	moneys into the Legal Affairs Revolving Trust Fund;
44	amending s. 517.221, F.S.; increasing the amount of
45	certain administrative fines; authorizing the office to
46	bar certain persons from submitting applications or
47	notifications for a license or registration under certain
48	circumstances; specifying nonapplication of time
49	limitations to certain office enforcement actions;
50	amending s. 517.275, F.S.; revising criteria for
51	prohibited practices relating to commodities; amending s.
52	905.34, F.S.; expanding subject matter jurisdiction of the
53	statewide grand jury to include certain additional
54	offenses; providing an effective date.
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1.  Paragraphs (a) and (b) of subsection (1) of
59	section 16.56, Florida Statutes, are amended to read:
60	16.56  Office of Statewide Prosecution.--
61	(1)  There is created in the Department of Legal Affairs an
62	Office of Statewide Prosecution. The office shall be a separate
63	"budget entity" as that term is defined in chapter 216. The
64	office may:
65	(a)  Investigate and prosecute the offenses of:
66	1.  Bribery, burglary, criminal usury, extortion, gambling,
67	kidnapping, larceny, murder, prostitution, perjury, robbery,
68	carjacking, and home-invasion robbery;
69	2.  Any crime involving narcotic or other dangerous drugs;
70	3.  Any violation of the provisions of the Florida RICO
71	(Racketeer Influenced and Corrupt Organization) Act, including
72	any offense listed in the definition of racketeering activity in
73	s. 895.02(1)(a), providing such listed offense is investigated
74	in connection with a violation of s. 895.03 and is charged in a
75	separate count of an information or indictment containing a
76	count charging a violation of s. 895.03, the prosecution of
77	which listed offense may continue independently if the
78	prosecution of the violation of s. 895.03 is terminated for any
79	reason;
80	4.  Any violation of the provisions of the Florida Anti-
81	Fencing Act;
82	5.  Any violation of the provisions of the Florida
83	Antitrust Act of 1980, as amended;
84	6.  Any crime involving, or resulting in, fraud or deceit
85	upon any person;
86	7.  Any violation of s. 847.0135, relating to computer
87	pornography and child exploitation prevention, or any offense
88	related to a violation of s. 847.0135 or any violation of
89	chapter 827 where the crime is facilitated by or connected to
90	the use of the Internet or any device capable of electronic data
91	storage or transmission;
92	8.  Any violation of the provisions of chapter 815;
93	9.  Any criminal violation of part I of chapter 499;
94	10.  Any violation of the provisions of the Florida Motor
95	Fuel Tax Relief Act of 2004;
96	11.  Any criminal violation of s. 409.920 or s. 409.9201;
97	or
98	12.  Any crime involving voter registration, voting, or
99	candidate or issue petition activities;
100	13.  Any criminal violation of the Florida Money Laundering
101	Act; or
102	14.  Any criminal violation of the Florida Securities and
103	Investor Protection Act;
104
105	or any attempt, solicitation, or conspiracy to commit any of the
106	crimes specifically enumerated above. The office shall have such
107	power only when any such offense is occurring, or has occurred,
108	in two or more judicial circuits as part of a related
109	transaction, or when any such offense is connected with an
110	organized criminal conspiracy affecting two or more judicial
111	circuits. Information or indictments used in bringing criminal
112	cases in more than one judicial circuit shall contain general
113	allegations stating the judicial circuits and counties in which
114	crimes are alleged to have occurred or the judicial circuits and
115	counties in which crimes affecting such circuits or counties are
116	alleged to have been connected with an organized criminal
117	conspiracy.
118	(b)  Investigate and prosecute any crime enumerated in
119	subparagraphs (a)1.-14. (a)1.-12. facilitated by or connected to
120	the use of the Internet. Any such crime is a crime occurring in
121	every judicial circuit within the state.
122	Section 2.  Subsection (4), paragraph (a) of subsection
123	(13), and subsection (23) of section 517.021, Florida Statutes,
124	are amended to read:
125	517.021  Definitions.--When used in this chapter, unless
126	the context otherwise indicates, the following terms have the
127	following respective meanings:
128	(4)  "Branch office" means any location in this state of a
129	dealer or investment adviser at which one or more associated
130	persons regularly conduct the business of rendering investment
131	advice or effecting any transactions in, or inducing or
132	attempting to induce the purchase or sale of, any security or
133	any location that is held out as such. The commission may adopt
134	by rule exceptions to this definition for dealers in order to
135	maintain consistency with the definition of a branch office used
136	by self-regulatory organizations authorized by the Securities
137	and Exchange Commission, including, but not limited to, the
138	Financial Industry Regulatory Authority National Association of
139	Securities Dealers or the New York Stock Exchange. The
140	commission may adopt by rule exceptions to this definition for
141	investment advisers.
142	(13)(a)  "Investment adviser" includes any person who
143	receives for compensation, directly or indirectly, and engages
144	for all or part of her or his time, directly or indirectly, or
145	through publications or writings, in the business of advising
146	others as to the value of securities or as to the advisability
147	of investments in, purchasing of, or selling of securities,
148	except a dealer whose performance of these services is solely
149	incidental to the conduct of her or his business as a dealer and
150	who receives no special compensation for such services.
151	(23)  "Viatical settlement investment" means an agreement
152	for the purchase, sale, assignment, transfer, devise, or bequest
153	of all or any portion of a legal or equitable interest in a
154	viaticated policy as defined in chapter 626. The term does not
155	include:
156	(a)  The transfer or assignment of an interest in a
157	previously viaticated policy from a natural person who transfers
158	or assigns no more than one such interest in 1 calendar year.
159	(b)  The provision of stop-loss coverage to a viatical
160	settlement provider, financing entity, or related provider
161	trust, as those terms are defined in s. 626.9911, by an
162	authorized or eligible insurer.
163	(c)  The transfer or assignment of a viaticated policy from
164	a licensed viatical settlement provider to another licensed
165	viatical settlement provider, a related provider trust, a
166	financing entity, or a special purpose entity, as those terms
167	are defined in s. 626.9911, or to a contingency insurer provided
168	that such transfer or assignment is not the direct or indirect
169	promotion of any scheme or enterprise with the intent of
170	violating or evading any provision of this chapter.
171	(d)  The transfer or assignment of a viaticated policy to a
172	bank, trust company, savings institution, insurance company,
173	dealer, investment company as defined in the Investment Company
174	Act of 1940, pension or profit-sharing trust, or qualified
175	institutional buyer as defined in United States Securities and
176	Exchange Commission Rule 144A, 17 C.F.R. s. 230.144A(a), or to
177	an accredited investor as defined by Rule 501 of Regulation D of
178	the Securities Act Rules, provided such transfer or assignment
179	is not for the direct or indirect promotion of any scheme or
180	enterprise with the intent of violating or evading any provision
181	of this chapter.
182	(e)  The transfer or assignment of a viaticated policy by a
183	conservator of a viatical settlement provider appointed by a
184	court of competent jurisdiction who transfers or assigns
185	ownership of viaticated policies pursuant to that court's order.
186	Section 3.  Section 517.072, Florida Statutes, is amended
187	to read:
188	517.072  Viatical settlement investments.--
189	(1)  The exemptions provided for by ss. 517.051(6), (8),
190	and (10) do not apply to a viatical settlement investment.
191	(2)  The offering of a viatical settlement investment is
192	not an exempt transaction under s. 517.061(2), (3), (8), (11),
193	and (18), regardless of whether the offering otherwise complies
194	with the conditions of that section, unless such offering is to
195	a qualified institutional buyer.
196	(3)  The registration provisions of ss. 517.07 and 517.12
197	do not apply to any of the following transactions in viatical
198	settlement investments; however, such transactions in viatical
199	settlement investments are subject to the provisions of ss.
200	517.301, 517.311, and 517.312:
201	(a)  The transfer or assignment of an interest in a
202	previously viaticated policy from a natural person who transfers
203	or assigns no more than one such interest in a single calendar
204	year.
205	(b)  The provision of stop-loss coverage to a viatical
206	settlement provider, financing entity, or related provider
207	trust, as those terms are defined in s. 626.9911, by an
208	authorized or eligible insurer.
209	(c)  The transfer or assignment of a viaticated policy from
210	a licensed viatical settlement provider to another licensed
211	viatical settlement provider, a related provider trust, a
212	financing entity, or a special purpose entity, as those terms
213	are defined in s. 626.9911, or to a contingency insurer,
214	provided such transfer or assignment is not the direct or
215	indirect promotion of any scheme or enterprise with the intent
216	of violating or evading any provision of this chapter.
217	(d)  The transfer or assignment of a viaticated policy to a
218	bank, trust company, savings institution, insurance company,
219	dealer, investment company as defined in the Investment Company
220	Act of 1940, pension or profit-sharing trust, or qualified
221	institutional buyer as defined in United States Securities and
222	Exchange Commission Rule 144A, 17 C.F.R. s. 230.144A(a), or to
223	an accredited investor as defined by Rule 501 of Regulation D of
224	the Securities Act Rules, provided such transfer or assignment
225	is not for the direct or indirect promotion of any scheme or
226	enterprise with the intent of violating or evading any provision
227	of this chapter.
228	(e)  The transfer or assignment of a viaticated policy by a
229	conservator of a viatical settlement provider appointed by a
230	court of competent jurisdiction who transfers or assigns
231	ownership of viaticated policies pursuant to that court's order.
232	Section 4.  Subsections (7), (8), and (11) and paragraph
233	(b) of subsection (15) of section 517.12, Florida Statutes, are
234	amended to read:
235	517.12  Registration of dealers, associated persons,
236	investment advisers, and branch offices.--
237	(7)  The application shall also contain such information as
238	the commission or office may require about the applicant; any
239	partner, member, officer, or director of the applicant or any
240	person having a similar status or performing similar functions;
241	any person directly or indirectly controlling the applicant; or
242	any employee of a dealer or of an investment adviser rendering
243	investment advisory services. Each applicant or any natural
244	person listed on the application form shall file a complete set
245	of fingerprints. A fingerprint card submitted to the office must
246	be taken by an authorized law enforcement agency or in a manner
247	approved by the commission or office by rule. The office shall
248	submit the fingerprints to the Department of Law Enforcement for
249	state processing, and the Department of Law Enforcement shall
250	forward the fingerprints to the Federal Bureau of Investigation
251	for federal processing. All fingerprint cards submitted to the
252	Department of Law Enforcement shall be entered into the
253	statewide automated fingerprint identification system authorized
254	by s. 943.05(2)(b). The office shall notify the Department of
255	Law Enforcement when a person whose fingerprint information is
256	retained by the Department of Law Enforcement is no longer
257	registered with the office. The cost of the fingerprint
258	processing may be borne by the office, the employer, or the
259	person subject to the background check. The Department of Law
260	Enforcement shall submit an invoice to the office for the
261	fingerprints received each month. The office shall screen the
262	background results to determine if the applicant meets licensure
263	requirements. The commission may waive, by rule, the requirement
264	that applicants must file a set of fingerprints or the
265	requirement that such fingerprints must be processed by the
266	Department of Law Enforcement or the Federal Bureau of
267	Investigation. The commission or office may require information
268	about any such applicant or person concerning such matters as:
269	(a)  His or her full name, and any other names by which he
270	or she may have been known, and his or her age, social security
271	number, photograph, qualifications, and educational and business
272	history.
273	(b)  Any injunction or administrative order by a state or
274	federal agency, national securities exchange, or national
275	securities association involving a security or any aspect of the
276	securities business and any injunction or administrative order
277	by a state or federal agency regulating banking, insurance,
278	finance, or small loan companies, real estate, mortgage brokers,
279	or other related or similar industries, which injunctions or
280	administrative orders relate to such person.
281	(c)  His or her conviction of, or plea of nolo contendere
282	to, a criminal offense or his or her commission of any acts
283	which would be grounds for refusal of an application under s.
284	517.161.
285	(d)  The names and addresses of other persons of whom the
286	office may inquire as to his or her character, reputation, and
287	financial responsibility.
288	(8)  The commission or office may require the applicant or
289	one or more principals or general partners, or natural persons
290	exercising similar functions, or any associated person applicant
291	to successfully pass oral or written examinations. Because any
292	principal, manager, supervisor, or person exercising similar
293	functions shall be responsible for the acts of the associated
294	persons affiliated with a dealer or investment adviser, the
295	examination standards may be higher for a dealer, office
296	manager, principal, or person exercising similar functions than
297	for a nonsupervisory associated person. The commission may waive
298	the examination process when it determines that such
299	examinations are not in the public interest. The office shall
300	waive the examination requirements for any person who has passed
301	any tests as prescribed in s. 15(b)(7) of the Securities
302	Exchange Act of 1934 that relates to the position to be filled
303	by the applicant.
304	(11)  If the office finds that the applicant is of good
305	repute and character and has complied with the provisions of
306	this chapter and the rules made pursuant hereto, it shall
307	register the applicant. The registration of each dealer,
308	investment adviser, branch office, and associated person expires
309	on December 31 of the year the registration became effective
310	unless the registrant has renewed his or her registration on or
311	before that date. The commission may establish by rule
312	procedures for renewing the registration of a branch office
313	through the Central Registration Depository. Registration may be
314	renewed by furnishing such information as the commission may
315	require, together with payment of the fee required in subsection
316	(10) for dealers, investment advisers, associated persons, or
317	branch offices and the payment of any amount lawfully due and
318	owing to the office pursuant to any order of the office or
319	pursuant to any agreement with the office. Any dealer,
320	investment adviser, or associated person, or branch office
321	registrant who has not renewed a registration by the time the
322	current registration expires may request reinstatement of such
323	registration by filing with the office, on or before January 31
324	of the year following the year of expiration, such information
325	as may be required by the commission, together with payment of
326	the fee required in subsection (10) for dealers, investment
327	advisers, or associated persons, or branch office and a late fee
328	equal to the amount of such fee. Any reinstatement of
329	registration granted by the office during the month of January
330	shall be deemed effective retroactive to January 1 of that year.
331	(15)
332	(b)  In lieu of filing with the office the applications
333	specified in subsection (6), the fees required by subsection
334	(10), the renewals required by subsection (11), and the
335	termination notices required by subsection (12), the commission
336	may by rule establish procedures for the deposit of such fees
337	and documents with the Central Registration Depository or the
338	Investment Adviser Registration Depository of the Financial
339	Industry Regulatory Authority National Association of Securities
340	Dealers, Inc., as developed under contract with the North
341	American Securities Administrators Association, Inc.
342	Section 5.  Subsection (3) is added to section 517.121,
343	Florida Statutes, to read:
344	517.121  Books and records requirements; examinations.--
345	(3)  Registration under s. 517.12 may be immediately
346	suspended by the office if the registrant fails to provide to
347	the office, within 30 days after a written request, any of the
348	records required by this section and the rules adopted under
349	this section. The suspension may be rescinded if the registrant
350	submits the requested records to the office. For purposes of s.
351	120.60(6), failure to provide any of such records constitutes
352	immediate and serious danger to the public health, safety, and
353	welfare.
354	Section 6.  Subsection (2) of section 517.1215, Florida
355	Statutes, is amended to read:
356	517.1215  Requirements, rules of conduct, and prohibited
357	business practices for investment advisors and their associated
358	persons.--
359	(2)  The commission shall by rule establish rules of
360	conduct and prohibited business practices for investment
361	advisers and their associated persons. In adopting the rules,
362	the commission shall consider general industry standards as
363	expressed in the rules and regulations of the various federal
364	and self-regulatory agencies and regulatory associations,
365	including, but not limited to, the United States Securities and
366	Exchange Commission, the Financial Industry Regulatory Authority
367	National Association of Securities Dealers, and the North
368	American Securities Administrators Association.
369	Section 7.  Section 517.1217, Florida Statutes, is amended
370	to read:
371	517.1217  Rules of conduct and prohibited business
372	practices for dealers and their associated persons.--The
373	commission by rule may establish rules of conduct and prohibited
374	business practices for dealers and their associated persons. In
375	adopting the rules, the commission shall consider general
376	industry standards as expressed in the rules and regulations of
377	the various federal and self-regulatory agencies and regulatory
378	associations, including, but not limited to, the United States
379	Securities and Exchange Commission, the Financial Industry
380	Regulatory Authority National Association of Securities Dealers,
381	and the North American Securities Administrators Association.
382	Section 8.  Subsection (2) of section 517.131, Florida
383	Statutes, is amended to read:
384	517.131  Securities Guaranty Fund.--
385	(2)  The Securities Guaranty Fund shall be disbursed as
386	provided in s. 517.141 to a person who is adjudged by a court of
387	competent jurisdiction to have suffered monetary damages as a
388	result of any of the following acts committed by a dealer,
389	investment adviser, or associated person who was licensed under
390	this chapter at the time the act was committed:
391	(a)  A specific violation of s. 517.07.
392	(b)  A specific violation of s. 517.301.
393	Section 9.  Subsection (1) of section 517.141, Florida
394	Statutes, is amended to read:
395	517.141  Payment from the fund.--
396	(1)  Any person who meets all of the conditions prescribed
397	in s. 517.131 may apply to the office for payment to be made to
398	such person from the Securities Guaranty Fund in the amount
399	equal to the unsatisfied portion of such person's judgment or
400	$10,000, whichever is less, but only to the extent and amount
401	reflected in the judgment as being actual or compensatory
402	damages, excluding postjudgment interest, costs, and attorney's
403	fees.
404	Section 10.  Subsections (1) and (6) of section 517.161,
405	Florida Statutes, are amended to read:
406	517.161  Revocation, denial, or suspension of registration
407	of dealer, investment adviser, associated person, or branch
408	office.--
409	(1)  Registration under s. 517.12 may be denied or any
410	registration granted may be revoked, restricted, or suspended by
411	the office if the office determines that such applicant or
412	registrant; any partner, member, officer, or director of the
413	applicant or registrant or any person having a similar status or
414	performing similar functions; or any person directly or
415	indirectly controlling the applicant or registrant:
416	(a)  Has violated any provision of this chapter or any rule
417	or order made under this chapter;
418	(b)  Has made a material false statement in the application
419	for registration;
420	(c)  Has been guilty of a fraudulent act in connection with
421	rendering investment advice or in connection with any sale of
422	securities, has been or is engaged or is about to engage in
423	making fictitious or pretended sales or purchases of any such
424	securities or in any practice involving the rendering of
425	investment advice or the sale of securities which is fraudulent
426	or in violation of the law;
427	(d)  Has made a misrepresentation or false statement to, or
428	concealed any essential or material fact from, any person in the
429	rendering of investment advice or the sale of a security to such
430	person;
431	(e)  Has failed to account to persons interested for all
432	money and property received;
433	(f)  Has not delivered, after a reasonable time, to persons
434	entitled thereto securities held or agreed to be delivered by
435	the dealer, broker, or investment adviser, as and when paid for,
436	and due to be delivered;
437	(g)  Is rendering investment advice or selling or offering
438	for sale securities through any associated person not registered
439	in compliance with the provisions of this chapter;
440	(h)  Has demonstrated unworthiness to transact the business
441	of dealer, investment adviser, or associated person;
442	(i)  Has exercised management or policy control over or
443	owned 10 percent or more of the securities of any dealer or
444	investment adviser that has been declared bankrupt, or had a
445	trustee appointed under the Securities Investor Protection Act;
446	or is, in the case of a dealer or investment adviser, insolvent;
447	(j)  Has been convicted of, or has entered a plea of guilty
448	or nolo contendere to, regardless of whether adjudication was
449	withheld, a crime against the laws of this state or any other
450	state or of the United States or of any other country or
451	government which relates to registration as a dealer, investment
452	adviser, issuer of securities, associated person, or branch
453	office; which relates to the application for such registration;
454	or which involves moral turpitude or fraudulent or dishonest
455	dealing;
456	(k)  Has had a final judgment entered against her or him in
457	a civil action upon grounds of fraud, embezzlement,
458	misrepresentation, or deceit;
459	(l)  Is of bad business repute;
460	(m)  Has been the subject of any decision, finding, award,
461	injunction, suspension, prohibition, revocation, denial,
462	judgment, or administrative order by any court of competent
463	jurisdiction, administrative law judge, or by any state or
464	federal agency, national securities, commodities, or option
465	exchange, or national securities, commodities, or option
466	association, or any national securities, commodities, or options
467	dispute resolution forum, involving a violation of any federal
468	or state securities or commodities law or any rule or regulation
469	promulgated thereunder, or any rule or regulation of any
470	national securities, commodities, or options exchange or
471	national securities, commodities, or options association, or has
472	been the subject of any injunction or adverse administrative
473	order by a state or federal agency regulating banking,
474	insurance, finance or small loan companies, real estate,
475	mortgage brokers or lenders, money transmitters, or other
476	related or similar industries. For purposes of this subsection,
477	the office may not deny registration to any applicant who has
478	been continuously registered with the office for 5 years from
479	the date of entry of such decision, finding, injunction,
480	suspension, prohibition, revocation, denial, judgment, or
481	administrative order provided such decision, finding,
482	injunction, suspension, prohibition, revocation, denial,
483	judgment, or administrative order has been timely reported to
484	the office pursuant to the commission's rules. For purposes of
485	this paragraph, the term "state" shall include Canadian
486	provinces, and the term "national" shall include other
487	countries; or
488	(n)  Made payment to the office for a registration or
489	notice filing with a check or electronic transmission of funds
490	that is dishonored by the applicant's, registrant's, or notice
491	filer's financial institution.
492	(6)  Registration under s. 517.12 may be denied or any
493	registration granted may be suspended or restricted if an
494	applicant or registrant is charged, in a pending enforcement
495	action or pending criminal prosecution, with any conduct that
496	would authorize denial or revocation under subsection (1).
497	Registration under s. 517.12 may be suspended or restricted if a
498	registrant is arrested for any conduct that would authorize
499	revocation under subsection (1).
500	(a)  Any denial of registration ordered under this
501	subsection shall be without prejudice to the applicant's ability
502	to reapply for registration.
503	(b)  Any order of suspension or restriction under this
504	subsection shall:
505	1.  Take effect only after a hearing, unless no hearing is
506	requested by the registrant or unless the suspension or
507	restriction is made in accordance with s. 120.60(6).
508	2.  Contain a finding that evidence of a prima facie case
509	supports the charge made in the enforcement action or criminal
510	prosecution.
511	3.  Operate for no longer than 10 days beyond receipt of
512	notice by the office of termination with respect to the
513	registrant of the enforcement action or criminal prosecution.
514	(c)  For purposes of this subsection:
515	1.  The term "enforcement action" means any judicial
516	proceeding or any administrative proceeding where such judicial
517	or administrative proceeding is brought by an agency of the
518	United States or of any state to enforce or restrain violation
519	of any state or federal law, or any disciplinary proceeding
520	maintained by the Financial Industry Regulatory Authority
521	National Association of Securities Dealers, the National Futures
522	Association, the New York Stock Exchange, or any other similar
523	self-regulatory organization.
524	2.  An enforcement action is pending at any time after
525	notice to the applicant or registrant of such action and is
526	terminated at any time after entry of final judgment or decree
527	in the case of judicial proceedings, final agency action in the
528	case of administrative proceedings, and final disposition by a
529	self-regulatory organization in the case of disciplinary
530	proceedings.
531	3.  A criminal prosecution is pending at any time after
532	criminal charges are filed and is terminated at any time after
533	conviction, acquittal, or dismissal.
534	Section 11.  Section 517.1611, Florida Statutes, is created
535	to read:
536	517.1611  Guidelines.--
537	(1)  The commission shall adopt rules setting forth
538	sanction guidelines for violations by a registrant of any
539	provision of this chapter or the rules adopted under this
540	chapter. Pursuant to such rules, registration may be suspended,
541	revoked, or restricted, or a fine may be imposed based upon
542	violations of provisions of this chapter or the rules adopted
543	under this chapter by the registrant; any partner, member,
544	officer, or director of the registrant or any person having a
545	similar status or performing similar functions; or any person
546	directly or indirectly controlling the registrant. Such
547	guidelines shall be based upon the severity and repetition of
548	specific offenses; distinguish minor violations from those that
549	endanger the public health, safety, or welfare; and provide
550	reasonable and meaningful notice to the public of likely
551	penalties that may be imposed for proscribed conduct and ensure
552	that such penalties are imposed in a consistent manner by the
553	office. The guidelines may be adjusted based on aggravating and
554	mitigating factors established by rule and consistent with this
555	purpose.
556	(2)  The commission shall adopt rules setting forth
557	disqualifying periods pursuant to which an applicant will be
558	disqualified from eligibility for licensure based upon criminal
559	convictions, pleas of nolo contendere, or pleas of guilt,
560	regardless of whether adjudication was withheld, by the
561	applicant; any partner, member, officer, or director of the
562	applicant or any person having a similar status or performing
563	similar functions; or any person directly or indirectly
564	controlling the applicant. Such disqualifying periods may
565	include a 15-year disqualifying period based upon serious
566	felonies, a 7-year disqualifying period based upon all other
567	felonies, and a 5-year disqualifying period based upon
568	misdemeanors that relate to registration as a dealer, investment
569	adviser, issuer of securities, associated person, or branch
570	office; that relate to the application for such registration; or
571	that involve moral turpitude or fraudulent or dishonest dealing.
572	The disqualifying period shall be imposed in addition to the
573	period set by the court order of determination. The rule may
574	also consider mitigating factors, an additional waiting period
575	based upon dates of imprisonment or community supervision, an
576	additional waiting period based upon commitment of multiple
577	crimes, and other factors reasonably related to the
578	consideration of an applicant's criminal history. An applicant
579	is not eligible for registration until the expiration of the
580	disqualifying period set by rule. Section 112.011 shall not
581	apply to the registration provisions under this chapter. Nothing
582	in this section changes or amends the grounds for denial under
583	s. 517.161.
584	Section 12.  Subsection (3) of section 517.191, Florida
585	Statutes, is amended, and subsections (4) and (5) are added to
586	that section to read:
587	517.191  Injunction to restrain violations; enforcement by
588	Attorney General.--
589	(3)  In addition to, or in lieu of, any other remedies
590	provided by this chapter, the office may apply to the court
591	hearing this matter for an order directing the defendant to of
592	restitution whereby the defendants in such action shall be
593	ordered to make restitution of those sums shown by the office to
594	have been obtained by them in violation of any of the provisions
595	of this chapter. The office has standing to request such
596	restitution on behalf of victims in cases brought by the office
597	under this chapter, regardless of the appointment of an
598	administrator or receiver under subsection (2) or an injunction
599	under subsection (1). Further, such restitution shall, at the
600	option of the court, be payable to the administrator or receiver
601	appointed pursuant to this section or directly to the persons
602	whose assets were obtained in violation of this chapter.
603	(4)  In addition to any other remedies provided by this
604	chapter, the office may apply to the court hearing the matter
605	for, and the court shall have jurisdiction to impose, a civil
606	penalty against any person found to have violated any provision
607	of this chapter, any rule or order adopted by the commission or
608	office, or any written agreement entered into with the office in
609	an amount not to exceed $10,000 for a natural person or $25,000
610	for any other person, or the gross amount of any pecuniary gain
611	to such defendant for each such violation other than a violation
612	of s. 517.301 plus $50,000 for a natural person or $250,000 for
613	any other person, or the gross amount of any pecuniary gain to
614	such defendant for each violation of s. 517.301.
615	(5)  In addition to all other means provided by law for
616	enforcing any of the provisions of this chapter, when it appears
617	to the Attorney General upon complaint or otherwise that a
618	person has engaged or is engaged in any act or practice
619	constituting a violation of s. 517.275, s. 517.301, s. 517.311,
620	or s. 517.312, or any rule or order issued under such sections,
621	the Attorney General, after approval from the office, may
622	investigate and enforce the provisions of this section in the
623	same manner as provided in ss. 517.201, 517.2015, and 517.171.
624	Whenever the Attorney General has reason to believe that any
625	such person has engaged or is engaged in any act or practice
626	constituting a violation of s. 517.275, s. 517.301, s. 517.311,
627	or s. 517.312, or any rule or orders issued under such sections,
628	the Attorney General may bring an action against such person and
629	any other person in any way participating in such act or
630	practice or engaging in such act or practice or doing any act in
631	furtherance of such act or practice, to obtain injunctive
632	relief, restitution, civil penalties, and any remedies provided
633	for in this section. The Attorney General may recover any costs
634	and attorney fees related to the investigation or enforcement of
635	this section. Notwithstanding any other provision of law, moneys
636	recovered by the Attorney General for costs, attorney fees, and
637	civil penalties for a violation of this section shall be
638	deposited in the Legal Affairs Revolving Trust Fund.
639	Section 13.  Subsection (3) of section 517.221, Florida
640	Statutes, is amended, and subsections (4) and (5) are added to
641	that section, to read:
642	517.221  Cease and desist orders.--
643	(3)  The office may impose and collect an administrative
644	fine against any person found to have violated any provision of
645	this chapter, any rule or order promulgated by the commission or
646	office, or any written agreement entered into with the office in
647	an amount not to exceed $10,000 $5,000 for each such violation.
648	All fines collected hereunder shall be deposited as received in
649	the Anti-Fraud Trust Fund.
650	(4)  The office may bar, permanently or for a specific time
651	period, any person found to have violated any provision of this
652	chapter, any rule or order adopted by the commission or office,
653	or any written agreement entered into with the office from
654	submitting an application or notification for a license or
655	registration with the office.
656	(5)  Notwithstanding any limitations set forth in any
657	chapter other than this chapter, time limitations do not apply
658	to any enforcement actions brought by the office pursuant to its
659	authority under this chapter.
660	Section 14.  Section 517.275, Florida Statutes, is amended
661	to read:
662	517.275  Commodities; prohibited practices.--It is unlawful
663	and a violation of this chapter for any person to engage in any
664	act or practice in or from this state, which act or practice
665	constitutes a violation of any provision of the Commodity
666	Exchange Act, 7 U.S.C. ss. 1 et seq., as amended, or the rules
667	and regulations of the Commodity Futures Trading Commission
668	adopted under that act as amended upon the effective date of
669	this act.
670	Section 15.  Subsection (9) of section 905.34, Florida
671	Statutes, is amended, and subsections (11) and (12) are added to
672	that section to read:
673	905.34  Powers and duties; law applicable.--The
674	jurisdiction of a statewide grand jury impaneled under this
675	chapter shall extend throughout the state. The subject matter
676	jurisdiction of the statewide grand jury shall be limited to the
677	offenses of:
678	(9)  Any criminal violation of part I of chapter 499; or
679	(11)  Any criminal violation of the Florida Money
680	Laundering Act; or
681	(12)  Any criminal violation of the Florida Securities and
682	Investor Protection Act;
683
684	or any attempt, solicitation, or conspiracy to commit any
685	violation of the crimes specifically enumerated above, when any
686	such offense is occurring, or has occurred, in two or more
687	judicial circuits as part of a related transaction or when any
688	such offense is connected with an organized criminal conspiracy
689	affecting two or more judicial circuits. The statewide grand
690	jury may return indictments and presentments irrespective of the
691	county or judicial circuit where the offense is committed or
692	triable. If an indictment is returned, it shall be certified and
693	transferred for trial to the county where the offense was
694	committed. The powers and duties of, and law applicable to,
695	county grand juries shall apply to a statewide grand jury except
696	when such powers, duties, and law are inconsistent with the
697	provisions of ss. 905.31-905.40.
698	Section 16.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.