CS/CS/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; amending
12	s. 517.121, F.S.; authorizing the Office of Financial
13	Regulation to suspend registration for registrant failure
14	to provide certain records; providing for rescinding
15	suspensions; amending ss. 517.1215 and 517.1217, F.S.;
16	changing an agency reference; amending s. 517.141, F.S.;
17	excluding postjudgment interest from payments from the
18	fund; amending s. 517.161, F.S.; expanding the class of
19	persons related to or associated with an applicant or
20	registrant for which certain violations may result in
21	adverse actions taken against registrations; authorizing
22	the office to suspend a registration under certain
23	circumstances; creating s. 517.1611, F.S.; requiring the
24	Financial Services Commission to adopt rules providing
25	certain disciplinary guidelines; specifying criteria for
26	such guidelines; requiring the commission to adopt rules
27	for disqualifying registrants for certain periods of time
28	for certain criminal actions; providing rules criteria;
29	amending s. 517.191, F.S.; authorizing the office to apply
30	to the court for orders directing restitution; authorizing
31	the office to apply to the court to impose civil penalties
32	for certain violations; specifying limitations; requiring
33	deposit of civil penalties into the Anti-Fraud Trust Fund;
34	authorizing the Attorney General to act as an enforcing
35	authority for certain provisions of law; authorizing the
36	Attorney General, with approval of the office, to
37	investigate and enforce certain provisions; authorizing
38	the Attorney General to bring certain actions for
39	injunctive relief; authorizing the Attorney General to
40	recover certain investigation and enforcement costs and
41	attorney fees; providing for deposit of certain recovered
42	moneys into the Legal Affairs Revolving Trust Fund;
43	authorizing the Legal Affairs Revolving Trust Fund to be
44	used for investigation and enforcement purposes;
45	preserving the authority of the office to bring certain
46	administrative actions; prohibiting subjecting persons to
47	a civil penalty and an administrative fine under certain
48	circumstances; specifying time limitations on bringing
49	certain enforcement actions; amending s. 517.221, F.S.;
50	increasing the amount of certain administrative fines;
51	authorizing the office to bar certain persons from
52	submitting applications or notifications for a license or
53	registration under certain circumstances; amending s.
54	517.275, F.S.; revising criteria for prohibited practices
55	relating to commodities; creating s. 896.108, F.S.;
56	authorizing the Department of Law Enforcement to enter
57	into agreements to pay rewards for information leading to
58	the recovery of certain fines, penalties, or forfeitures;
59	authorizing the executive director of the department to
60	determine the amount of the reward; authorizing the
61	executive director to exceed certain statutory limits of
62	rewards under certain circumstances; providing
63	limitations; providing for deposit of certain funds into
64	certain trust funds; excluding certain persons from
65	eligibility to collect rewards; providing that a payment
66	of an award does not affect the admissibility of testimony
67	in court; amending s. 905.34, F.S.; expanding subject
68	matter jurisdiction of the statewide grand jury to include
69	certain additional offenses; providing an effective date.
70
71	Be It Enacted by the Legislature of the State of Florida:
72
73	Section 1.  Paragraphs (a) and (b) of subsection (1) of
74	section 16.56, Florida Statutes, are amended to read:
75	16.56  Office of Statewide Prosecution.--
76	(1)  There is created in the Department of Legal Affairs an
77	Office of Statewide Prosecution. The office shall be a separate
78	"budget entity" as that term is defined in chapter 216. The
79	office may:
80	(a)  Investigate and prosecute the offenses of:
81	1.  Bribery, burglary, criminal usury, extortion, gambling,
82	kidnapping, larceny, murder, prostitution, perjury, robbery,
83	carjacking, and home-invasion robbery;
84	2.  Any crime involving narcotic or other dangerous drugs;
85	3.  Any violation of the provisions of the Florida RICO
86	(Racketeer Influenced and Corrupt Organization) Act, including
87	any offense listed in the definition of racketeering activity in
88	s. 895.02(1)(a), providing such listed offense is investigated
89	in connection with a violation of s. 895.03 and is charged in a
90	separate count of an information or indictment containing a
91	count charging a violation of s. 895.03, the prosecution of
92	which listed offense may continue independently if the
93	prosecution of the violation of s. 895.03 is terminated for any
94	reason;
95	4.  Any violation of the provisions of the Florida Anti-
96	Fencing Act;
97	5.  Any violation of the provisions of the Florida
98	Antitrust Act of 1980, as amended;
99	6.  Any crime involving, or resulting in, fraud or deceit
100	upon any person;
101	7.  Any violation of s. 847.0135, relating to computer
102	pornography and child exploitation prevention, or any offense
103	related to a violation of s. 847.0135 or any violation of
104	chapter 827 where the crime is facilitated by or connected to
105	the use of the Internet or any device capable of electronic data
106	storage or transmission;
107	8.  Any violation of the provisions of chapter 815;
108	9.  Any criminal violation of part I of chapter 499;
109	10.  Any violation of the provisions of the Florida Motor
110	Fuel Tax Relief Act of 2004;
111	11.  Any criminal violation of s. 409.920 or s. 409.9201;
112	or
113	12.  Any crime involving voter registration, voting, or
114	candidate or issue petition activities;
115	13.  Any criminal violation of the Florida Money Laundering
116	Act; or
117	14.  Any criminal violation of the Florida Securities and
118	Investor Protection Act;
119
120	or any attempt, solicitation, or conspiracy to commit any of the
121	crimes specifically enumerated above. The office shall have such
122	power only when any such offense is occurring, or has occurred,
123	in two or more judicial circuits as part of a related
124	transaction, or when any such offense is connected with an
125	organized criminal conspiracy affecting two or more judicial
126	circuits. Informations or indictments charging such offenses
127	shall contain general allegations stating the judicial circuits
128	and counties in which crimes are alleged to have occurred or the
129	judicial circuits and counties in which crimes affecting such
130	circuits or counties are alleged to have been connected with an
131	organized criminal conspiracy.
132	(b)  Investigate and prosecute any crime enumerated in
133	subparagraphs (a)1.-14. (a)1.-12. facilitated by or connected to
134	the use of the Internet. Any such crime is a crime occurring in
135	every judicial circuit within the state.
136	Section 2.  Subsection (4), paragraph (a) of subsection
137	(13), and subsection (23) of section 517.021, Florida Statutes,
138	are amended to read:
139	517.021  Definitions.--When used in this chapter, unless
140	the context otherwise indicates, the following terms have the
141	following respective meanings:
142	(4)  "Branch office" means any location in this state of a
143	dealer or investment adviser at which one or more associated
144	persons regularly conduct the business of rendering investment
145	advice or effecting any transactions in, or inducing or
146	attempting to induce the purchase or sale of, any security or
147	any location that is held out as such. The commission may adopt
148	by rule exceptions to this definition for dealers in order to
149	maintain consistency with the definition of a branch office used
150	by self-regulatory organizations authorized by the Securities
151	and Exchange Commission, including, but not limited to, the
152	Financial Industry Regulatory Authority National Association of
153	Securities Dealers or the New York Stock Exchange. The
154	commission may adopt by rule exceptions to this definition for
155	investment advisers.
156	(13)(a)  "Investment adviser" includes any person who
157	receives for compensation, directly or indirectly, and engages
158	for all or part of her or his time, directly or indirectly, or
159	through publications or writings, in the business of advising
160	others as to the value of securities or as to the advisability
161	of investments in, purchasing of, or selling of securities,
162	except a dealer whose performance of these services is solely
163	incidental to the conduct of her or his business as a dealer and
164	who receives no special compensation for such services.
165	(23)  "Viatical settlement investment" means an agreement
166	for the purchase, sale, assignment, transfer, devise, or bequest
167	of all or any portion of a legal or equitable interest in a
168	viaticated policy as defined in chapter 626. The term does not
169	include:
170	(a)  The transfer or assignment of an interest in a
171	previously viaticated policy from a natural person who transfers
172	or assigns no more than one such interest in 1 calendar year.
173	(b)  The provision of stop-loss coverage to a viatical
174	settlement provider, financing entity, or related provider
175	trust, as those terms are defined in s. 626.9911, by an
176	authorized or eligible insurer.
177	(c)  The transfer or assignment of a viaticated policy from
178	a licensed viatical settlement provider to another licensed
179	viatical settlement provider, a related provider trust, a
180	financing entity, or a special purpose entity, as those terms
181	are defined in s. 626.9911, or to a contingency insurer provided
182	that such transfer or assignment is not the direct or indirect
183	promotion of any scheme or enterprise with the intent of
184	violating or evading any provision of this chapter.
185	(d)  The transfer or assignment of a viaticated policy to a
186	bank, trust company, savings institution, insurance company,
187	dealer, investment company as defined in the Investment Company
188	Act of 1940, pension or profit-sharing trust, or qualified
189	institutional buyer as defined in United States Securities and
190	Exchange Commission Rule 144A, 17 C.F.R. s. 230.144A(a), or to
191	an accredited investor as defined by Rule 501 of Regulation D of
192	the Securities Act Rules, provided such transfer or assignment
193	is not for the direct or indirect promotion of any scheme or
194	enterprise with the intent of violating or evading any provision
195	of this chapter.
196	(e)  The transfer or assignment of a viaticated policy by a
197	conservator of a viatical settlement provider appointed by a
198	court of competent jurisdiction who transfers or assigns
199	ownership of viaticated policies pursuant to that court's order.
200	Section 3.  Section 517.072, Florida Statutes, is amended
201	to read:
202	517.072  Viatical settlement investments.--
203	(1)  The exemptions provided for by ss. 517.051(6), (8),
204	and (10) do not apply to a viatical settlement investment.
205	(2)  The offering of a viatical settlement investment is
206	not an exempt transaction under s. 517.061(2), (3), (8), (11),
207	and (18), regardless of whether the offering otherwise complies
208	with the conditions of that section, unless such offering is to
209	a qualified institutional buyer.
210	(3)  The registration provisions of ss. 517.07 and 517.12
211	do not apply to any of the following transactions in viatical
212	settlement investments; however, such transactions in viatical
213	settlement investments are subject to the provisions of ss.
214	517.301, 517.311, and 517.312:
215	(a)  The transfer or assignment of an interest in a
216	previously viaticated policy from a natural person who transfers
217	or assigns no more than one such interest in a single calendar
218	year.
219	(b)  The provision of stop-loss coverage to a viatical
220	settlement provider, financing entity, or related provider
221	trust, as those terms are defined in s. 626.9911, by an
222	authorized or eligible insurer.
223	(c)  The transfer or assignment of a viaticated policy from
224	a licensed viatical settlement provider to another licensed
225	viatical settlement provider, a related provider trust, a
226	financing entity, or a special purpose entity, as those terms
227	are defined in s. 626.9911, or to a contingency insurer,
228	provided such transfer or assignment is not the direct or
229	indirect promotion of any scheme or enterprise with the intent
230	of violating or evading any provision of this chapter.
231	(d)  The transfer or assignment of a viaticated policy to a
232	bank, trust company, savings institution, insurance company,
233	dealer, investment company as defined in the Investment Company
234	Act of 1940, pension or profit-sharing trust, or qualified
235	institutional buyer as defined in United States Securities and
236	Exchange Commission Rule 144A, 17 C.F.R. s. 230.144A(a), or to
237	an accredited investor as defined by Rule 501 of Regulation D of
238	the Securities Act Rules, provided such transfer or assignment
239	is not for the direct or indirect promotion of any scheme or
240	enterprise with the intent of violating or evading any provision
241	of this chapter.
242	(e)  The transfer or assignment of a viaticated policy by a
243	conservator of a viatical settlement provider appointed by a
244	court of competent jurisdiction who transfers or assigns
245	ownership of viaticated policies pursuant to that court's order.
246	Section 4.  Subsections (7), (8), and (11) and paragraph
247	(b) of subsection (15) of section 517.12, Florida Statutes, are
248	amended to read:
249	517.12  Registration of dealers, associated persons,
250	investment advisers, and branch offices.--
251	(7)  The application shall also contain such information as
252	the commission or office may require about the applicant; any
253	member, principal partner, officer, or director of the applicant
254	or any person having a similar status or performing similar
255	functions; any person directly or indirectly controlling the
256	applicant; or any employee of a dealer or of an investment
257	adviser rendering investment advisory services. Each applicant
258	and any direct owners, principals, or indirect owners that are
259	required to be reported on Form BD or Form ADV pursuant to
260	subsection (15) shall file a complete set of fingerprints. A
261	fingerprint card submitted to the office must be taken by an
262	authorized law enforcement agency or in a manner approved by the
263	commission by rule. The office shall submit the fingerprints to
264	the Department of Law Enforcement for state processing, and the
265	Department of Law Enforcement shall forward the fingerprints to
266	the Federal Bureau of Investigation for federal processing. The
267	cost of the fingerprint processing may be borne by the office,
268	the employer, or the person subject to the background check. The
269	Department of Law Enforcement shall submit an invoice to the
270	office for the fingerprints received each month. The office
271	shall screen the background results to determine if the
272	applicant meets licensure requirements. The commission may
273	waive, by rule, the requirement that applicants, including any
274	direct owners, principals, or indirect owners that are required
275	to be reported on Form BD or Form ADV pursuant to subsection
276	(15), must file a set of fingerprints or the requirement that
277	such fingerprints must be processed by the Department of Law
278	Enforcement or the Federal Bureau of Investigation. The
279	commission or office may require information about any such
280	applicant or person concerning such matters as:
281	(a)  His or her full name, and any other names by which he
282	or she may have been known, and his or her age, social security
283	number, photograph, qualifications, and educational and business
284	history.
285	(b)  Any injunction or administrative order by a state or
286	federal agency, national securities exchange, or national
287	securities association involving a security or any aspect of the
288	securities business and any injunction or administrative order
289	by a state or federal agency regulating banking, insurance,
290	finance, or small loan companies, real estate, mortgage brokers,
291	or other related or similar industries, which injunctions or
292	administrative orders relate to such person.
293	(c)  His or her conviction of, or plea of nolo contendere
294	to, a criminal offense or his or her commission of any acts
295	which would be grounds for refusal of an application under s.
296	517.161.
297	(d)  The names and addresses of other persons of whom the
298	office may inquire as to his or her character, reputation, and
299	financial responsibility.
300	(8)  The commission or office may require the applicant or
301	one or more principals or general partners, or natural persons
302	exercising similar functions, or any associated person applicant
303	to successfully pass oral or written examinations. Because any
304	principal, manager, supervisor, or person exercising similar
305	functions shall be responsible for the acts of the associated
306	persons affiliated with a dealer or investment adviser, the
307	examination standards may be higher for a dealer, office
308	manager, principal, or person exercising similar functions than
309	for a nonsupervisory associated person. The commission may waive
310	the examination process when it determines that such
311	examinations are not in the public interest. The office shall
312	waive the examination requirements for any person who has passed
313	any tests as prescribed in s. 15(b)(7) of the Securities
314	Exchange Act of 1934 that relates to the position to be filled
315	by the applicant.
316	(11)  If the office finds that the applicant is of good
317	repute and character and has complied with the provisions of
318	this chapter and the rules made pursuant hereto, it shall
319	register the applicant. The registration of each dealer,
320	investment adviser, branch office, and associated person expires
321	on December 31 of the year the registration became effective
322	unless the registrant has renewed his or her registration on or
323	before that date. The commission may establish by rule
324	procedures for renewing the registration of a branch office
325	through the Central Registration Depository. Registration may be
326	renewed by furnishing such information as the commission may
327	require, together with payment of the fee required in subsection
328	(10) for dealers, investment advisers, associated persons, or
329	branch offices and the payment of any amount lawfully due and
330	owing to the office pursuant to any order of the office or
331	pursuant to any agreement with the office. Any dealer,
332	investment adviser, or associated person, or branch office
333	registrant who has not renewed a registration by the time the
334	current registration expires may request reinstatement of such
335	registration by filing with the office, on or before January 31
336	of the year following the year of expiration, such information
337	as may be required by the commission, together with payment of
338	the fee required in subsection (10) for dealers, investment
339	advisers, or associated persons, or branch office and a late fee
340	equal to the amount of such fee. Any reinstatement of
341	registration granted by the office during the month of January
342	shall be deemed effective retroactive to January 1 of that year.
343	(15)
344	(b)  In lieu of filing with the office the applications
345	specified in subsection (6), the fees required by subsection
346	(10), the renewals required by subsection (11), and the
347	termination notices required by subsection (12), the commission
348	may by rule establish procedures for the deposit of such fees
349	and documents with the Central Registration Depository or the
350	Investment Adviser Registration Depository of the Financial
351	Industry Regulatory Authority National Association of Securities
352	Dealers, Inc., as developed under contract with the North
353	American Securities Administrators Association, Inc.
354	Section 5.  Subsection (3) is added to section 517.121,
355	Florida Statutes, to read:
356	517.121  Books and records requirements; examinations.--
357	(3)  Registration under s. 517.12 may be summarily
358	suspended by the office pursuant to s. 120.60(6) if the
359	registrant fails to promptly provide to the office, after a
360	written request, any of the records required by this section and
361	the rules adopted under this section. The suspension may be
362	rescinded if the registrant submits the requested records to the
363	office. For purposes of s. 120.60(6), failure to provide
364	substantially all of such records constitutes immediate and
365	serious danger to the public health, safety, and welfare.
366	Section 6.  Subsection (2) of section 517.1215, Florida
367	Statutes, is amended to read:
368	517.1215  Requirements, rules of conduct, and prohibited
369	business practices for investment advisors and their associated
370	persons.--
371	(2)  The commission shall by rule establish rules of
372	conduct and prohibited business practices for investment
373	advisers and their associated persons. In adopting the rules,
374	the commission shall consider general industry standards as
375	expressed in the rules and regulations of the various federal
376	and self-regulatory agencies and regulatory associations,
377	including, but not limited to, the United States Securities and
378	Exchange Commission, the Financial Industry Regulatory Authority
379	National Association of Securities Dealers, and the North
380	American Securities Administrators Association.
381	Section 7.  Section 517.1217, Florida Statutes, is amended
382	to read:
383	517.1217  Rules of conduct and prohibited business
384	practices for dealers and their associated persons.--The
385	commission by rule may establish rules of conduct and prohibited
386	business practices for dealers and their associated persons. In
387	adopting the rules, the commission shall consider general
388	industry standards as expressed in the rules and regulations of
389	the various federal and self-regulatory agencies and regulatory
390	associations, including, but not limited to, the United States
391	Securities and Exchange Commission, the Financial Industry
392	Regulatory Authority National Association of Securities Dealers,
393	and the North American Securities Administrators Association.
394	Section 8.  Subsection (1) of section 517.141, Florida
395	Statutes, is amended to read:
396	517.141  Payment from the fund.--
397	(1)  Any person who meets all of the conditions prescribed
398	in s. 517.131 may apply to the office for payment to be made to
399	such person from the Securities Guaranty Fund in the amount
400	equal to the unsatisfied portion of such person's judgment or
401	$10,000, whichever is less, but only to the extent and amount
402	reflected in the judgment as being actual or compensatory
403	damages, excluding postjudgment interest, costs, and attorney's
404	fees.
405	Section 9.  Subsections (1) and (6) of section 517.161,
406	Florida Statutes, are amended to read:
407	517.161  Revocation, denial, or suspension of registration
408	of dealer, investment adviser, associated person, or branch
409	office.--
410	(1)  Registration under s. 517.12 may be denied or any
411	registration granted may be revoked, restricted, or suspended by
412	the office if the office determines that such applicant or
413	registrant; any member, principal, or director of the applicant
414	or registrant or any person having a similar status or
415	performing similar functions; or any person directly or
416	indirectly controlling the applicant or registrant:
417	(a)  Has violated any provision of this chapter or any rule
418	or order made under this chapter;
419	(b)  Has made a material false statement in the application
420	for registration;
421	(c)  Has been guilty of a fraudulent act in connection with
422	rendering investment advice or in connection with any sale of
423	securities, has been or is engaged or is about to engage in
424	making fictitious or pretended sales or purchases of any such
425	securities or in any practice involving the rendering of
426	investment advice or the sale of securities which is fraudulent
427	or in violation of the law;
428	(d)  Has made a misrepresentation or false statement to, or
429	concealed any essential or material fact from, any person in the
430	rendering of investment advice or the sale of a security to such
431	person;
432	(e)  Has failed to account to persons interested for all
433	money and property received;
434	(f)  Has not delivered, after a reasonable time, to persons
435	entitled thereto securities held or agreed to be delivered by
436	the dealer, broker, or investment adviser, as and when paid for,
437	and due to be delivered;
438	(g)  Is rendering investment advice or selling or offering
439	for sale securities through any associated person not registered
440	in compliance with the provisions of this chapter;
441	(h)  Has demonstrated unworthiness to transact the business
442	of dealer, investment adviser, or associated person;
443	(i)  Has exercised management or policy control over or
444	owned 10 percent or more of the securities of any dealer or
445	investment adviser that has been declared bankrupt, or had a
446	trustee appointed under the Securities Investor Protection Act;
447	or is, in the case of a dealer or investment adviser, insolvent;
448	(j)  Has been convicted of, or has entered a plea of guilty
449	or nolo contendere to, regardless of whether adjudication was
450	withheld, a crime against the laws of this state or any other
451	state or of the United States or of any other country or
452	government which relates to registration as a dealer, investment
453	adviser, issuer of securities, associated person, or branch
454	office; which relates to the application for such registration;
455	or which involves moral turpitude or fraudulent or dishonest
456	dealing;
457	(k)  Has had a final judgment entered against her or him in
458	a civil action upon grounds of fraud, embezzlement,
459	misrepresentation, or deceit;
460	(l)  Is of bad business repute;
461	(m)  Has been the subject of any decision, finding,
462	injunction, suspension, prohibition, revocation, denial,
463	judgment, or administrative order by any court of competent
464	jurisdiction, administrative law judge, or by any state or
465	federal agency, national securities, commodities, or option
466	exchange, or national securities, commodities, or option
467	association, involving a violation of any federal or state
468	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 after
479	from 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; or
485	(n)  Made payment to the office for a registration or
486	notice filing with a check or electronic transmission of funds
487	that is dishonored by the applicant's, registrant's, or notice
488	filer's financial institution.
489	(6)  Registration under s. 517.12 may be denied or any
490	registration granted may be suspended or restricted if an
491	applicant or registrant is charged, in a pending enforcement
492	action or pending criminal prosecution, with any conduct that
493	would authorize denial or revocation under subsection (1).
494	Registration under s. 517.12 may be suspended or restricted if a
495	registrant is arrested for any conduct that would authorize
496	revocation under subsection (1).
497	(a)  Any denial of registration ordered under this
498	subsection shall be without prejudice to the applicant's ability
499	to reapply for registration.
500	(b)  Any order of suspension or restriction under this
501	subsection shall:
502	1.  Take effect only after a hearing, unless no hearing is
503	requested by the registrant or unless the suspension or
504	restriction is made in accordance with s. 120.60(6).
505	2.  Contain a finding that evidence of a prima facie case
506	supports the charge made in the enforcement action or criminal
507	prosecution.
508	3.  Operate for no longer than 10 days beyond receipt of
509	notice by the office of termination with respect to the
510	registrant of the enforcement action or criminal prosecution.
511	(c)  For purposes of this subsection:
512	1.  The term "enforcement action" means any judicial
513	proceeding or any administrative proceeding where such judicial
514	or administrative proceeding is brought by an agency of the
515	United States or of any state to enforce or restrain violation
516	of any state or federal law, or any disciplinary proceeding
517	maintained by the Financial Industry Regulatory Authority
518	National Association of Securities Dealers, the National Futures
519	Association, the New York Stock Exchange, or any other similar
520	self-regulatory organization.
521	2.  An enforcement action is pending at any time after
522	notice to the applicant or registrant of such action and is
523	terminated at any time after entry of final judgment or decree
524	in the case of judicial proceedings, final agency action in the
525	case of administrative proceedings, and final disposition by a
526	self-regulatory organization in the case of disciplinary
527	proceedings.
528	3.  A criminal prosecution is pending at any time after
529	criminal charges are filed and is terminated at any time after
530	conviction, acquittal, or dismissal.
531	Section 10.  Section 517.1611, Florida Statutes, is created
532	to read:
533	517.1611  Guidelines.--
534	(1)  The commission shall adopt by rule disciplinary
535	guidelines applicable to each ground for disciplinary action
536	that may be imposed by the office.
537	(a)  The disciplinary guidelines shall specify a range of
538	penalties based upon the severity and repetition of specific
539	offenses. The disciplinary guidelines shall distinguish minor
540	violations from violations that endanger the public health,
541	safety, or welfare; provide reasonable notice to the public of
542	penalties that may be imposed for proscribed conduct; and ensure
543	that penalties are imposed in a consistent manner by the office.
544	(b)  The commission shall identify mitigating and
545	aggravating circumstances by rule that allow the office to
546	impose a penalty other than that specified in the guidelines.
547	(2)  The commission shall adopt by rule disqualifying
548	periods pursuant to which an applicant will be disqualified from
549	eligibility for registration based upon criminal convictions,
550	pleas of nolo contendere, or pleas of guilt, regardless of
551	whether adjudication was withheld, by the applicant; any
552	partner, member, officer, or director of the applicant or any
553	person having a similar status or performing similar functions;
554	or any person directly or indirectly controlling the applicant.
555	(a)  The disqualifying periods shall be 15 years for a
556	felony and 5 years for a misdemeanor.
557	(b)  The disqualifying periods shall be related to crimes
558	involving registration as a dealer, investment adviser, issuer
559	of securities, associated person, or branch office or the
560	application for such registration or involving moral turpitude
561	or fraudulent or dishonest dealing.
562	(c)  The rules may also address mitigating factors, an
563	additional waiting period based upon dates of imprisonment or
564	community supervision, an additional waiting period based upon
565	commitment of multiple crimes, and other factors reasonably
566	related to the consideration of an applicant's criminal history.
567	(d)  An applicant is not eligible for registration until
568	the expiration of the disqualifying period set by rule. Section
569	112.011 does not apply to the registration provisions under this
570	chapter. Nothing in this section changes or amends the grounds
571	for denial under s. 517.161.
572	Section 11.  Subsection (3) of section 517.191, Florida
573	Statutes, is amended, and subsections (4), (5), (6), and (7) are
574	added to that section, to read:
575	517.191  Injunction to restrain violations; civil
576	penalties; enforcement by Attorney General.--
577	(3)  In addition to, or in lieu of, any other remedies
578	provided by this chapter, the office may apply to the court
579	hearing this matter for an order directing the defendant of
580	restitution whereby the defendants in such action shall be
581	ordered to make restitution of those sums shown by the office to
582	have been obtained by them in violation of any of the provisions
583	of this chapter. The office has standing to request such
584	restitution on behalf of victims in cases brought by the office
585	under this chapter, regardless of the appointment of an
586	administrator or receiver under subsection (2) or an injunction
587	under subsection (1). Further, such restitution shall, at the
588	option of the court, be payable to the administrator or receiver
589	appointed pursuant to this section or directly to the persons
590	whose assets were obtained in violation of this chapter.
591	(4)  In addition to any other remedies provided by this
592	chapter, the office may apply to the court hearing the matter
593	for, and the court shall have jurisdiction to impose, a civil
594	penalty against any person found to have violated any provision
595	of this chapter, any rule or order adopted by the commission or
596	office, or any written agreement entered into with the office in
597	an amount not to exceed $10,000 for a natural person or $25,000
598	for any other person, or the gross amount of any pecuniary gain
599	to such defendant for each such violation other than a violation
600	of s. 517.301 plus $50,000 for a natural person or $250,000 for
601	any other person, or the gross amount of any pecuniary gain to
602	such defendant for each violation of s. 517.301. All civil
603	penalties collected pursuant to this subsection shall be
604	deposited into the Anti-Fraud Trust Fund.
605	(5)  In addition to all other means provided by law for
606	enforcing any of the provisions of this chapter, when the
607	Attorney General, upon complaint or otherwise, has reason to
608	believe that a person has engaged or is engaged in any act or
609	practice constituting a violation of s. 517.275, s. 517.301, s.
610	517.311, or s. 517.312, or any rule or order issued under such
611	sections, the Attorney General may investigate and bring an
612	action to enforce these provisions as provided in ss. 517.201,
613	517.2015, and 517.171 after receiving written approval from the
614	office. Such an action may be brought against such person and
615	any other person in any way participating in such act or
616	practice or engaging in such act or practice or doing any act in
617	furtherance of such act or practice, to obtain injunctive
618	relief, restitution, civil penalties, and any remedies provided
619	for in this section. The Attorney General may recover any costs
620	and attorney fees related to the Attorney General's
621	investigation or enforcement of this section. Notwithstanding
622	any other provision of law, moneys recovered by the Attorney
623	General for costs, attorney fees, and civil penalties for a
624	violation of s. 517.275, s. 517.301, s. 517.311, or s. 517.312,
625	or any rule or order issued pursuant such sections, shall be
626	deposited in the Legal Affairs Revolving Trust Fund. The Legal
627	Affairs Revolving Trust Fund may be used to investigate and
628	enforce this section.
629	(6)  This section does not limit the authority of the
630	office to bring an administrative action against any person that
631	is the subject of a civil action brought pursuant to this
632	section or limit the authority of the office to engage in
633	investigations or enforcement actions with the Attorney General.
634	However, a person may not be subject to both a civil penalty
635	under subsection (4) and an administrative fine under s.
636	517.221(3) as the result of the same facts.
637	(7)  Notwithstanding s. 95.11(4)(e), an enforcement action
638	brought under this section based on a violation of any provision
639	of this chapter or any rule or order issued under this chapter
640	shall be brought within 6 years after the facts giving rise to
641	the cause of action were discovered or should have been
642	discovered with the exercise of due diligence, but not more than
643	8 years after the date such violation occurred.
644	Section 12.  Subsection (3) of section 517.221, Florida
645	Statutes, is amended, and subsection (4) is added to that
646	section, to read:
647	517.221  Cease and desist orders.--
648	(3)  The office may impose and collect an administrative
649	fine against any person found to have violated any provision of
650	this chapter, any rule or order promulgated by the commission or
651	office, or any written agreement entered into with the office in
652	an amount not to exceed $10,000 $5,000 for each such violation.
653	All fines collected hereunder shall be deposited as received in
654	the Anti-Fraud Trust Fund.
655	(4)  The office may bar, permanently or for a specific time
656	period, any person found to have violated any provision of this
657	chapter, any rule or order adopted by the commission or office,
658	or any written agreement entered into with the office from
659	submitting an application or notification for a license or
660	registration with the office.
661	Section 13.  Section 517.275, Florida Statutes, is amended
662	to read:
663	517.275  Commodities; prohibited practices.--It is unlawful
664	and a violation of this chapter for any person to engage in any
665	act or practice in or from this state, which act or practice
666	constitutes a violation of any provision of the Commodity
667	Exchange Act, 7 U.S.C. ss. 1 et seq., as amended, or the rules
668	and regulations of the Commodity Futures Trading Commission
669	adopted under that act as amended upon the effective date of
670	this act.
671	Section 14.  Section 896.108, Florida Statutes, is created
672	to read:
673	896.108  Rewards for private entities combating
674	international money laundering.--
675	(1)  In conducting any investigation of a violation of this
676	chapter, the Department of Law Enforcement may enter into
677	agreements and pay a reward to any individual or entity who
678	provides original information that leads to a recovery of a
679	criminal fine, civil penalty, or forfeiture based in whole or in
680	part upon a violation of federal law or the laws of this state.
681	(2)  The executive director of the Department of Law
682	Enforcement shall determine the amount of a reward under this
683	section. The executive director, with written approval of the
684	Office of the Attorney General, may exceed the limits of rewards
685	provided in s. 896.107, when the criminal fine, civil penalty,
686	or forfeiture amount received by the state warrants an upward
687	departure from such limits. Notwithstanding any other provision
688	of law, rewards paid under this section shall be paid only from
689	seized assets awarded by the court. Funds seized by the
690	Department of Law Enforcement pursuant to this chapter shall be
691	placed in the department's Forfeiture and Investigative Support
692	Trust Fund established by s. 943.362, or for funds secured
693	through the federal forfeiture actions in the Federal Law
694	Enforcement Trust Fund established by s. 943.365, excluding any
695	rewards paid as provided in this section.
696	(3)  An officer or employee of the Federal Government, a
697	state or local government, or a foreign government who in the
698	performance of official duties provides information described in
699	subsection (1) is not eligible for a reward under this section.
700	(4)  Payment of a reward does not affect the admissibility
701	of testimony in any court proceeding.
702	Section 15.  Subsection (9) of section 905.34, Florida
703	Statutes, is amended, and subsections (11) and (12) are added to
704	that section, to read:
705	905.34  Powers and duties; law applicable.--The
706	jurisdiction of a statewide grand jury impaneled under this
707	chapter shall extend throughout the state. The subject matter
708	jurisdiction of the statewide grand jury shall be limited to the
709	offenses of:
710	(9)  Any criminal violation of part I of chapter 499; or
711	(11)  Any criminal violation of the Florida Money
712	Laundering Act; or
713	(12)  Any criminal violation of the Florida Securities and
714	Investor Protection Act;
715
716	or any attempt, solicitation, or conspiracy to commit any
717	violation of the crimes specifically enumerated above, when any
718	such offense is occurring, or has occurred, in two or more
719	judicial circuits as part of a related transaction or when any
720	such offense is connected with an organized criminal conspiracy
721	affecting two or more judicial circuits. The statewide grand
722	jury may return indictments and presentments irrespective of the
723	county or judicial circuit where the offense is committed or
724	triable. If an indictment is returned, it shall be certified and
725	transferred for trial to the county where the offense was
726	committed. The powers and duties of, and law applicable to,
727	county grand juries shall apply to a statewide grand jury except
728	when such powers, duties, and law are inconsistent with the
729	provisions of ss. 905.31-905.40.
730	Section 16.  This act shall take effect July 1, 2009.

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