HB 1643 2003
1	A bill to be entitled
2	An act relating to securities transactions; amending s.
3	517.03, F.S.; authorizing the Attorney General to enforce
4	certain provisions and to initiate certain actions;
5	amending s. 517.191, F.S.; authorizing the Attorney
6	General to bring civil actions to recover civil penalties,
7	action costs, and attorney's fees; amending s. 517.2015,
8	F.S.; deleting a provision granting a privilege against
9	civil immunity for furnishing certain information or
10	evidence; amending s. 517.302, F.S.; providing a criminal
11	penalty for violations of specified sections of ch. 517,
12	F.S.; deleting a criminal penalty for violating a
13	provision of ch. 517, F.S.; authorizing the use of funds
14	from the Anti-Fraud Trust Fund to compensate victims of
15	violations of ch. 517, F.S.; assigning duties for
16	administering the program of compensation; providing for
17	rules; providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1. Subsection (3) is added to section 517.03,
22	Florida Statutes, to read:
23	517.03 Rulemaking; immunity for acts in conformity with
24	rules.--
25	(3) Notwithstanding any other provision of this chapter,
26	the Attorney General may enforce the provisions of ss. 517.07,
27	517.12, 517.275, 517.301, 517.311, and 517.312; may commence any
28	proceeding, issue any order, or conduct any investigation
29	pursuant to this chapter for violations of this chapter or a
30	rule or order under this chapter; and may seek all available
31	remedies. Any information relative to a civil investigation or
32	examination by the Attorney General pursuant to this chapter is
33	subject to s. 517.2015.
34	Section 2. Section 517.191, Florida Statutes, is amended
35	to read:
36	517.191 Injunction to restrain violations; civil action.--
37	(1) When it shall appear to the department, either upon
38	complaint or otherwise, that a person has engaged or is about to
39	engage in any act or practice constituting a violation of this
40	chapter or a rule or order hereunder, the department may
41	investigate; and whenever it shall believe from evidence
42	satisfactory to it that any such person has engaged, is engaged,
43	or is about to engage in any act or practice constituting a
44	violation of this chapter or a rule or order hereunder, the
45	department may, in addition to any other remedies, bring action
46	in the name and on behalf of the state against such person and
47	any other person concerned in or in any way participating in or
48	about to participate in such practices or engaging therein or
49	doing any act or acts in furtherance thereof or in violation of
50	this chapter to enjoin such person or persons from continuing
51	such fraudulent practices or engaging therein or doing any act
52	or acts in furtherance thereof or in violation of this chapter.
53	In any such court proceedings, the department may apply for, and
54	on due showing be entitled to have issued, the court's subpoena
55	requiring forthwith the appearance of any defendant and her or
56	his employees, associated persons, or agents and the production
57	of documents, books, and records that may appear necessary for
58	the hearing of such petition, to testify or give evidence
59	concerning the acts or conduct or things complained of in such
60	application for injunction. In such action, the equity courts
61	shall have jurisdiction of the subject matter, and a judgment
62	may be entered awarding such injunction as may be proper.
63	(2) In addition to all other means provided by law for the
64	enforcement of any temporary restraining order, temporary
65	injunction, or permanent injunction issued in any such court
66	proceedings, the court shall have the power and jurisdiction,
67	upon application of the department, to impound and to appoint a
68	receiver or administrator for the property, assets, and business
69	of the defendant, including, but not limited to, the books,
70	records, documents, and papers appertaining thereto. Such
71	receiver or administrator, when appointed and qualified, shall
72	have all powers and duties as to custody, collection,
73	administration, winding up, and liquidation of said property and
74	business as shall from time to time be conferred upon her or him
75	by the court. In any such action, the court may issue orders and
76	decrees staying all pending suits and enjoining any further
77	suits affecting the receiver's or administrator's custody or
78	possession of the said property, assets, and business or, in its
79	discretion, may with the consent of the presiding judge of the
80	circuit require that all such suits be assigned to the circuit
81	court judge appointing the said receiver or administrator.
82	(3) In addition to any other remedies provided by this
83	chapter, the department may apply to the court hearing this
84	matter for an order of restitution whereby the defendants in
85	such action shall be ordered to make restitution of those sums
86	shown by the department to have been obtained by them in
87	violation of any of the provisions of this chapter. Such
88	restitution shall, at the option of the court, be payable to the
89	administrator or receiver appointed pursuant to this section or
90	directly to the persons whose assets were obtained in violation
91	of this chapter.
92	(4) In addition to all other actions provided for by this
93	chapter, the Attorney General may bring a civil action in the
94	name of the state to recover civil penalties not to exceed
95	$10,000 for each violation of this chapter or a rule or order
96	under this chapter and the cost of such action, including
97	reasonable attorney’s fees.
98	Section 3. Subsection (3) of section 517.2015, Florida
99	Statutes, is amended to read:
100	517.2015 Confidentiality of information relating to
101	investigations and examinations.--
102	(3) A privilege against civil liability is granted to a
103	person who furnishes information or evidence to the department,
104	unless such person acts in bad faith or with malice in providing
105	such information or evidence.
106	Section 4. Section 517.302, Florida Statutes, is amended
107	to read:
108	517.302 Criminal penalties; alternative fine; Anti-Fraud
109	Trust Fund; time limitation for criminal prosecution.--
110	(1)(a) Except as provided in paragraph (b),whoever
111	violates any of the provisions of this chapter commitsis guilty
112	ofa felony of the third degree, punishable as provided in s.
113	775.082, s. 775.083, or s. 775.084.
114	(b) Whoever violates any of the provisions of s. 517.275,
115	s. 517.301, or s. 517.311 commits a felony of the second degree,
116	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
117	(2) Any person who violates the provisions of s.
118	517.312(1) by obtaining money or property of an aggregate value
119	exceeding $50,000 from five or more persons is guilty of a
120	felony of the first degree, punishable as provided in s.
121	775.082, s. 775.083, or s. 775.084.
122	(2)(3)In lieu of a fine otherwise authorized by law, a
123	person who has been convicted of or who has pleaded guilty or no
124	contest to having engaged in conduct in violation of the
125	provisions of this chapter may be sentenced to pay a fine that
126	does not exceed the greater of three times the gross value
127	gained or three times the gross loss caused by such conduct,
128	plus court costs and the costs of investigation and prosecution
129	reasonably incurred.
130	(a) There is created within the department a trust fund to
131	be known as the Anti-Fraud Trust Fund. Any amounts assessed as
132	costs of investigation and prosecution under this subsection
133	shall be deposited in the trust fund. Funds deposited in such
134	trust fund shall be used, when authorized by appropriation, for
135	investigation and prosecution of administrative, civil, and
136	criminal actions arising under the provisions of this chapter.
137	In addition, funds may be used, when authorized by
138	appropriation, to compensate victims of criminal violations of
139	this chapter. The department shall adopt rules to administer the
140	disbursement of funds in compensation of such victims, including
141	application forms and methods for substantiation of damages and
142	determination of priority of payment when available funds are
143	insufficient to pay all compensation claims.Funds may also be
144	used to improve the public's awareness and understanding of
145	prudent investing.
146	(b) The department shall report to the Executive Office of
147	the Governor annually by November 15, the amounts deposited into
148	the Anti-Fraud Trust Fund during the previous fiscal year. The
149	Executive Office of the Governor shall distribute these reports
150	to the President of the Senate and the Speaker of the House of
151	Representatives.
152	(3)(4)Criminal prosecution for offenses under this
153	chapter is subject to the time limitations of s. 775.15.
154	Section 5. This act shall take effect July 1, 2003.