Senate Bill sb1630

    Florida Senate - 2003                                  SB 1630

    By Senator Fasano





    11-378-03

  1                      A bill to be entitled

  2         An act relating to securities transactions;

  3         amending s. 517.302, F.S.; increasing the

  4         penalty for criminal violations of specified

  5         sections of chapter 517, F.S.; authorizing the

  6         use of funds from the Anti-Fraud Trust Fund to

  7         compensate victims of violations of that

  8         chapter; assigning duties for administering the

  9         program of compensation; providing for rules;

10         providing an effective date.

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12  Be It Enacted by the Legislature of the State of Florida:

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14         Section 1.  Section 517.302, Florida Statutes, is

15  amended to read:

16         517.302  Criminal penalties; alternative fine;

17  Anti-Fraud Trust Fund; time limitation for criminal

18  prosecution.--

19         (1)(a)  Except as provided in paragraph (b), whoever

20  violates any of the provisions of this chapter commits is

21  guilty of a felony of the third degree, punishable as provided

22  in s. 775.082, s. 775.083, or s. 775.084.

23         (b)  Whoever violates any of the provisions of s.

24  517.275, s. 517.301, or s. 517.311 commits a felony of the

25  second degree, punishable as provided in s. 775.082, s.

26  775.083, or s. 775.084.

27         (2)  Any person who violates the provisions of s.

28  517.312(1) by obtaining money or property of an aggregate

29  value exceeding $50,000 from five or more persons commits is

30  guilty of a life felony of the first degree, punishable as

31  provided in s. 775.082, s. 775.083, or s. 775.084.

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    Florida Senate - 2003                                  SB 1630
    11-378-03




  1         (3)  In lieu of a fine otherwise authorized by law, a

  2  person who has been convicted of or who has pleaded guilty or

  3  no contest to having engaged in conduct in violation of the

  4  provisions of this chapter may be sentenced to pay a fine that

  5  does not exceed the greater of three times the gross value

  6  gained or three times the gross loss caused by such conduct,

  7  plus court costs and the costs of investigation and

  8  prosecution reasonably incurred.

  9         (a)  There is created within the department a trust

10  fund to be known as the Anti-Fraud Trust Fund.  Any amounts

11  assessed as costs of investigation and prosecution under this

12  subsection shall be deposited in the trust fund. Funds

13  deposited in such trust fund shall be used, when authorized by

14  appropriation, for investigation and prosecution of

15  administrative, civil, and criminal actions arising under the

16  provisions of this chapter. In addition, funds may be used,

17  when authorized by appropriation, to compensate victims of

18  criminal violations of this chapter. The department shall

19  adopt rules to administer the disbursement of funds in

20  compensation of such victims, including application forms and

21  methods for substantiation of damages and determination of

22  priority of payment when available funds are insufficient to

23  pay all compensation claims. Funds may also be used to improve

24  the public's awareness and understanding of prudent investing.

25         (b)  The department shall report to the Executive

26  Office of the Governor annually by November 15, the amounts

27  deposited into the Anti-Fraud Trust Fund during the previous

28  fiscal year.  The Executive Office of the Governor shall

29  distribute these reports to the President of the Senate and

30  the Speaker of the House of Representatives.

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    Florida Senate - 2003                                  SB 1630
    11-378-03




  1         (4)  Criminal prosecution for offenses under this

  2  chapter is subject to the time limitations of s. 775.15.

  3         Section 2.  This act shall take effect July 1, 2003.

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  6                          SENATE SUMMARY

  7    Authorizes use of moneys in the Anti-Fraud Trust Fund to
      compensate victims of violations of chapter 517, Florida
  8    Statutes, relating to securities transactions. Increases
      the penalty for violations of that chapter which involve
  9    commodities trading, fraudulent transactions, false
      representations, or boiler room practices.
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CODING: Words stricken are deletions; words underlined are additions.