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	preserving the authority of the office to bring certain
44	administrative actions; specifying time limitations on
45	bringing certain enforcement actions; amending s. 517.221,
46	F.S.; increasing the amount of certain administrative
47	fines; authorizing the office to bar certain persons from
48	submitting applications or notifications for a license or
49	registration under certain circumstances; amending s.
50	517.275, F.S.; revising criteria for prohibited practices
51	relating to commodities; amending s. 905.34, F.S.;
52	expanding subject matter jurisdiction of the statewide
53	grand jury to include certain additional offenses;
54	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 person
244	listed on the application form or subsequent amendment to the
245	application form shall file a complete set of fingerprints. A
246	fingerprint card submitted to the office must be taken by an
247	authorized law enforcement agency or in a manner approved by the
248	commission by rule. The office shall submit the fingerprints to
249	the Department of Law Enforcement for state processing, and the
250	Department of Law Enforcement shall forward the fingerprints to
251	the Federal Bureau of Investigation for federal processing. The
252	cost of the fingerprint processing may be borne by the office,
253	the employer, or the person subject to the background check. The
254	Department of Law Enforcement shall submit an invoice to the
255	office for the fingerprints received each month. The office
256	shall screen the background results to determine if the
257	applicant meets licensure requirements. The commission may
258	waive, by rule, the requirement that applicants or any person
259	listed on the application form must file a set of fingerprints
260	or the requirement that such fingerprints must be processed by
261	the Department of Law Enforcement or the Federal Bureau of
262	Investigation. The commission or office may require information
263	about any such applicant or person concerning such matters as:
264	(a)  His or her full name, and any other names by which he
265	or she may have been known, and his or her age, social security
266	number, photograph, qualifications, and educational and business
267	history.
268	(b)  Any injunction or administrative order by a state or
269	federal agency, national securities exchange, or national
270	securities association involving a security or any aspect of the
271	securities business and any injunction or administrative order
272	by a state or federal agency regulating banking, insurance,
273	finance, or small loan companies, real estate, mortgage brokers,
274	or other related or similar industries, which injunctions or
275	administrative orders relate to such person.
276	(c)  His or her conviction of, or plea of nolo contendere
277	to, a criminal offense or his or her commission of any acts
278	which would be grounds for refusal of an application under s.
279	517.161.
280	(d)  The names and addresses of other persons of whom the
281	office may inquire as to his or her character, reputation, and
282	financial responsibility.
283	(8)  The commission or office may require the applicant or
284	one or more principals or general partners, or natural persons
285	exercising similar functions, or any associated person applicant
286	to successfully pass oral or written examinations. Because any
287	principal, manager, supervisor, or person exercising similar
288	functions shall be responsible for the acts of the associated
289	persons affiliated with a dealer or investment adviser, the
290	examination standards may be higher for a dealer, office
291	manager, principal, or person exercising similar functions than
292	for a nonsupervisory associated person. The commission may waive
293	the examination process when it determines that such
294	examinations are not in the public interest. The office shall
295	waive the examination requirements for any person who has passed
296	any tests as prescribed in s. 15(b)(7) of the Securities
297	Exchange Act of 1934 that relates to the position to be filled
298	by the applicant.
299	(11)  If the office finds that the applicant is of good
300	repute and character and has complied with the provisions of
301	this chapter and the rules made pursuant hereto, it shall
302	register the applicant. The registration of each dealer,
303	investment adviser, branch office, and associated person expires
304	on December 31 of the year the registration became effective
305	unless the registrant has renewed his or her registration on or
306	before that date. The commission may establish by rule
307	procedures for renewing the registration of a branch office
308	through the Central Registration Depository. Registration may be
309	renewed by furnishing such information as the commission may
310	require, together with payment of the fee required in subsection
311	(10) for dealers, investment advisers, associated persons, or
312	branch offices and the payment of any amount lawfully due and
313	owing to the office pursuant to any order of the office or
314	pursuant to any agreement with the office. Any dealer,
315	investment adviser, or associated person, or branch office
316	registrant who has not renewed a registration by the time the
317	current registration expires may request reinstatement of such
318	registration by filing with the office, on or before January 31
319	of the year following the year of expiration, such information
320	as may be required by the commission, together with payment of
321	the fee required in subsection (10) for dealers, investment
322	advisers, or associated persons, or branch office and a late fee
323	equal to the amount of such fee. Any reinstatement of
324	registration granted by the office during the month of January
325	shall be deemed effective retroactive to January 1 of that year.
326	(15)
327	(b)  In lieu of filing with the office the applications
328	specified in subsection (6), the fees required by subsection
329	(10), the renewals required by subsection (11), and the
330	termination notices required by subsection (12), the commission
331	may by rule establish procedures for the deposit of such fees
332	and documents with the Central Registration Depository or the
333	Investment Adviser Registration Depository of the Financial
334	Industry Regulatory Authority National Association of Securities
335	Dealers, Inc., as developed under contract with the North
336	American Securities Administrators Association, Inc.
337	Section 5.  Subsection (3) is added to section 517.121,
338	Florida Statutes, to read:
339	517.121  Books and records requirements; examinations.--
340	(3)  Registration under s. 517.12 may be immediately
341	suspended by the office if the registrant fails to promptly
342	provide to the office, after a written request, any of the
343	records required by this section and the rules adopted under
344	this section. The suspension may be rescinded if the registrant
345	submits the requested records to the office. For purposes of s.
346	120.60(6), failure to provide any of such records constitutes
347	immediate and serious danger to the public health, safety, and
348	welfare.
349	Section 6.  Subsection (2) of section 517.1215, Florida
350	Statutes, is amended to read:
351	517.1215  Requirements, rules of conduct, and prohibited
352	business practices for investment advisors and their associated
353	persons.--
354	(2)  The commission shall by rule establish rules of
355	conduct and prohibited business practices for investment
356	advisers and their associated persons. In adopting the rules,
357	the commission shall consider general industry standards as
358	expressed in the rules and regulations of the various federal
359	and self-regulatory agencies and regulatory associations,
360	including, but not limited to, the United States Securities and
361	Exchange Commission, the Financial Industry Regulatory Authority
362	National Association of Securities Dealers, and the North
363	American Securities Administrators Association.
364	Section 7.  Section 517.1217, Florida Statutes, is amended
365	to read:
366	517.1217  Rules of conduct and prohibited business
367	practices for dealers and their associated persons.--The
368	commission by rule may establish rules of conduct and prohibited
369	business practices for dealers and their associated persons. In
370	adopting the rules, the commission shall consider general
371	industry standards as expressed in the rules and regulations of
372	the various federal and self-regulatory agencies and regulatory
373	associations, including, but not limited to, the United States
374	Securities and Exchange Commission, the Financial Industry
375	Regulatory Authority National Association of Securities Dealers,
376	and the North American Securities Administrators Association.
377	Section 8.  Subsection (1) of section 517.141, Florida
378	Statutes, is amended to read:
379	517.141  Payment from the fund.--
380	(1)  Any person who meets all of the conditions prescribed
381	in s. 517.131 may apply to the office for payment to be made to
382	such person from the Securities Guaranty Fund in the amount
383	equal to the unsatisfied portion of such person's judgment or
384	$10,000, whichever is less, but only to the extent and amount
385	reflected in the judgment as being actual or compensatory
386	damages, excluding postjudgment interest, costs, and attorney's
387	fees.
388	Section 9.  Subsections (1) and (6) of section 517.161,
389	Florida Statutes, are amended to read:
390	517.161  Revocation, denial, or suspension of registration
391	of dealer, investment adviser, associated person, or branch
392	office.--
393	(1)  Registration under s. 517.12 may be denied or any
394	registration granted may be revoked, restricted, or suspended by
395	the office if the office determines that such applicant or
396	registrant; any partner, member, officer, or director of the
397	applicant or registrant or any person having a similar status or
398	performing similar functions; or any person directly or
399	indirectly controlling the applicant or registrant:
400	(a)  Has violated any provision of this chapter or any rule
401	or order made under this chapter;
402	(b)  Has made a material false statement in the application
403	for registration;
404	(c)  Has been guilty of a fraudulent act in connection with
405	rendering investment advice or in connection with any sale of
406	securities, has been or is engaged or is about to engage in
407	making fictitious or pretended sales or purchases of any such
408	securities or in any practice involving the rendering of
409	investment advice or the sale of securities which is fraudulent
410	or in violation of the law;
411	(d)  Has made a misrepresentation or false statement to, or
412	concealed any essential or material fact from, any person in the
413	rendering of investment advice or the sale of a security to such
414	person;
415	(e)  Has failed to account to persons interested for all
416	money and property received;
417	(f)  Has not delivered, after a reasonable time, to persons
418	entitled thereto securities held or agreed to be delivered by
419	the dealer, broker, or investment adviser, as and when paid for,
420	and due to be delivered;
421	(g)  Is rendering investment advice or selling or offering
422	for sale securities through any associated person not registered
423	in compliance with the provisions of this chapter;
424	(h)  Has demonstrated unworthiness to transact the business
425	of dealer, investment adviser, or associated person;
426	(i)  Has exercised management or policy control over or
427	owned 10 percent or more of the securities of any dealer or
428	investment adviser that has been declared bankrupt, or had a
429	trustee appointed under the Securities Investor Protection Act;
430	or is, in the case of a dealer or investment adviser, insolvent;
431	(j)  Has been convicted of, or has entered a plea of guilty
432	or nolo contendere to, regardless of whether adjudication was
433	withheld, a crime against the laws of this state or any other
434	state or of the United States or of any other country or
435	government which relates to registration as a dealer, investment
436	adviser, issuer of securities, associated person, or branch
437	office; which relates to the application for such registration;
438	or which involves moral turpitude or fraudulent or dishonest
439	dealing;
440	(k)  Has had a final judgment entered against her or him in
441	a civil action upon grounds of fraud, embezzlement,
442	misrepresentation, or deceit;
443	(l)  Is of bad business repute;
444	(m)  Has been the subject of any decision, finding, award,
445	injunction, suspension, prohibition, revocation, denial,
446	judgment, or administrative order by any court of competent
447	jurisdiction, administrative law judge, or by any state or
448	federal agency, national securities, commodities, or option
449	exchange, or national securities, commodities, or option
450	association, involving a violation of any federal or state
451	securities or commodities law or any rule or regulation
452	promulgated thereunder, or any rule or regulation of any
453	national securities, commodities, or options exchange or
454	national securities, commodities, or options association, or has
455	been the subject of any injunction or adverse administrative
456	order by a state or federal agency regulating banking,
457	insurance, finance or small loan companies, real estate,
458	mortgage brokers or lenders, money transmitters, or other
459	related or similar industries. For purposes of this subsection,
460	the office may not deny registration to any applicant who has
461	been continuously registered with the office for 5 years after
462	from the date of entry of such decision, finding, injunction,
463	suspension, prohibition, revocation, denial, judgment, or
464	administrative order provided such decision, finding,
465	injunction, suspension, prohibition, revocation, denial,
466	judgment, or administrative order has been timely reported to
467	the office pursuant to the commission's rules. For purposes of
468	this paragraph, the term "state" includes Canadian provinces,
469	and the term "national" includes other countries; or
470	(n)  Made payment to the office for a registration or
471	notice filing with a check or electronic transmission of funds
472	that is dishonored by the applicant's, registrant's, or notice
473	filer's financial institution.
474	(6)  Registration under s. 517.12 may be denied or any
475	registration granted may be suspended or restricted if an
476	applicant or registrant is charged, in a pending enforcement
477	action or pending criminal prosecution, with any conduct that
478	would authorize denial or revocation under subsection (1).
479	Registration under s. 517.12 may be suspended or restricted if a
480	registrant is arrested for any conduct that would authorize
481	revocation under subsection (1).
482	(a)  Any denial of registration ordered under this
483	subsection shall be without prejudice to the applicant's ability
484	to reapply for registration.
485	(b)  Any order of suspension or restriction under this
486	subsection shall:
487	1.  Take effect only after a hearing, unless no hearing is
488	requested by the registrant or unless the suspension or
489	restriction is made in accordance with s. 120.60(6).
490	2.  Contain a finding that evidence of a prima facie case
491	supports the charge made in the enforcement action or criminal
492	prosecution.
493	3.  Operate for no longer than 10 days beyond receipt of
494	notice by the office of termination with respect to the
495	registrant of the enforcement action or criminal prosecution.
496	(c)  For purposes of this subsection:
497	1.  The term "enforcement action" means any judicial
498	proceeding or any administrative proceeding where such judicial
499	or administrative proceeding is brought by an agency of the
500	United States or of any state to enforce or restrain violation
501	of any state or federal law, or any disciplinary proceeding
502	maintained by the Financial Industry Regulatory Authority
503	National Association of Securities Dealers, the National Futures
504	Association, the New York Stock Exchange, or any other similar
505	self-regulatory organization.
506	2.  An enforcement action is pending at any time after
507	notice to the applicant or registrant of such action and is
508	terminated at any time after entry of final judgment or decree
509	in the case of judicial proceedings, final agency action in the
510	case of administrative proceedings, and final disposition by a
511	self-regulatory organization in the case of disciplinary
512	proceedings.
513	3.  A criminal prosecution is pending at any time after
514	criminal charges are filed and is terminated at any time after
515	conviction, acquittal, or dismissal.
516	Section 10.  Section 517.1611, Florida Statutes, is created
517	to read:
518	517.1611  Guidelines.--
519	(1)  The commission shall adopt by rule disciplinary
520	guidelines applicable to each ground for disciplinary action
521	that may be imposed by the office.
522	(a)  The disciplinary guidelines shall specify a range of
523	penalties based upon the severity and repetition of specific
524	offenses. The disciplinary guidelines shall distinguish minor
525	violations from violations that endanger the public health,
526	safety, or welfare; provide reasonable notice to the public of
527	penalties that may be imposed for proscribed conduct; and ensure
528	that penalties are imposed in a consistent manner by the office.
529	(b)  The commission shall identify mitigating and
530	aggravating circumstances by rule that allow the office to
531	impose a penalty other than that specified in the guidelines.
532	(2)  The commission shall adopt by rule disqualifying
533	periods pursuant to which an applicant will be disqualified from
534	eligibility for registration based upon criminal convictions,
535	pleas of nolo contendere, or pleas of guilt, regardless of
536	whether adjudication was withheld, by the applicant; any
537	partner, member, officer, or director of the applicant or any
538	person having a similar status or performing similar functions;
539	or any person directly or indirectly controlling the applicant.
540	(a)  The disqualifying periods shall be 15 years for a
541	felony and 5 years for a misdemeanor.
542	(b)  The disqualifying periods shall be related to crimes
543	involving registration as a dealer, investment adviser, issuer
544	of securities, associated person, or branch office or the
545	application for such registration or involving moral turpitude
546	or fraudulent or dishonest dealing.
547	(c)  The rules may also address mitigating factors, an
548	additional waiting period based upon dates of imprisonment or
549	community supervision, an additional waiting period based upon
550	commitment of multiple crimes, and other factors reasonably
551	related to the consideration of an applicant's criminal history.
552	(d)  An applicant is not eligible for registration until
553	the expiration of the disqualifying period set by rule. Section
554	112.011 does not apply to the registration provisions under this
555	chapter. Nothing in this section changes or amends the grounds
556	for denial under s. 517.161.
557	Section 11.  Subsection (3) of section 517.191, Florida
558	Statutes, is amended, and subsections (4), (5), (6), and (7) are
559	added to that section, to read:
560	517.191  Injunction to restrain violations; civil
561	penalties; enforcement by Attorney General.--
562	(3)  In addition to, or in lieu of, any other remedies
563	provided by this chapter, the office may apply to the court
564	hearing this matter for an order directing the defendant of
565	restitution whereby the defendants in such action shall be
566	ordered to make restitution of those sums shown by the office to
567	have been obtained by them in violation of any of the provisions
568	of this chapter. The office has standing to request such
569	restitution on behalf of victims in cases brought by the office
570	under this chapter, regardless of the appointment of an
571	administrator or receiver under subsection (2) or an injunction
572	under subsection (1). Further, such restitution shall, at the
573	option of the court, be payable to the administrator or receiver
574	appointed pursuant to this section or directly to the persons
575	whose assets were obtained in violation of this chapter.
576	(4)  In addition to any other remedies provided by this
577	chapter, the office may apply to the court hearing the matter
578	for, and the court shall have jurisdiction to impose, a civil
579	penalty against any person found to have violated any provision
580	of this chapter, any rule or order adopted by the commission or
581	office, or any written agreement entered into with the office in
582	an amount not to exceed $10,000 for a natural person or $25,000
583	for any other person, or the gross amount of any pecuniary gain
584	to such defendant for each such violation other than a violation
585	of s. 517.301 plus $50,000 for a natural person or $250,000 for
586	any other person, or the gross amount of any pecuniary gain to
587	such defendant for each violation of s. 517.301. All civil
588	penalties collected pursuant to this subsection shall be
589	deposited into the Anti-Fraud Trust Fund.
590	(5)  In addition to all other means provided by law for
591	enforcing any of the provisions of this chapter, when it appears
592	to the Attorney General upon complaint or otherwise that a
593	person has engaged or is engaged in any act or practice
594	constituting a violation of s. 517.275, s. 517.301, s. 517.311,
595	or s. 517.312, or any rule or order issued under such sections,
596	the Attorney General may act as an enforcing authority of this
597	chapter as specified in this chapter, after written approval
598	from the office. The Attorney General may investigate and
599	enforce the provisions of this section in the same manner as
600	provided in ss. 517.201, 517.2015, and 517.171 and shall be
601	subject to s. 517.2015. Whenever the Attorney General is acting
602	as an enforcing authority of this chapter and has reason to
603	believe that any such person has engaged or is engaged in any
604	act or practice constituting a violation of s. 517.275, s.
605	517.301, s. 517.311, or s. 517.312, or any rule or orders issued
606	under such sections, the Attorney General may bring an action
607	against such person and any other person in any way
608	participating in such act or practice or engaging in such act or
609	practice or doing any act in furtherance of such act or
610	practice, to obtain injunctive relief, restitution, civil
611	penalties, and any remedies provided for in this section. The
612	Attorney General may recover any costs and attorney fees related
613	to the investigation or enforcement of this section.
614	Notwithstanding any other provision of law, moneys recovered by
615	the Attorney General for costs, attorney fees, and civil
616	penalties for a violation of s. 517.275, s. 517.301, s. 517.311,
617	or s. 517.312, or any rule or order issued pursuant such
618	sections, shall be deposited in the Legal Affairs Revolving
619	Trust Fund.
620	(6)  This section does not limit the authority of the
621	office to bring an administrative action against any person that
622	is the subject of a civil action brought pursuant to this
623	section or limit the authority of the office to engage in
624	investigations or enforcement actions with the Attorney General.
625	(7)  Notwithstanding s. 95.11(4)(e), an enforcement action
626	brought under this section based on a violation of any provision
627	of this chapter or any rule or order issued under this chapter
628	shall be brought within 6 years after the facts giving rise to
629	the cause of action were discovered or should have been
630	discovered with the exercise of due diligence, but not more than
631	10 years after the date such violation occurred.
632	Section 12.  Subsection (3) of section 517.221, Florida
633	Statutes, is amended, and subsection (4) is added to that
634	section, to read:
635	517.221  Cease and desist orders.--
636	(3)  The office may impose and collect an administrative
637	fine against any person found to have violated any provision of
638	this chapter, any rule or order promulgated by the commission or
639	office, or any written agreement entered into with the office in
640	an amount not to exceed $10,000 $5,000 for each such violation.
641	All fines collected hereunder shall be deposited as received in
642	the Anti-Fraud Trust Fund.
643	(4)  The office may bar, permanently or for a specific time
644	period, any person found to have violated any provision of this
645	chapter, any rule or order adopted by the commission or office,
646	or any written agreement entered into with the office from
647	submitting an application or notification for a license or
648	registration with the office.
649	Section 13.  Section 517.275, Florida Statutes, is amended
650	to read:
651	517.275  Commodities; prohibited practices.--It is unlawful
652	and a violation of this chapter for any person to engage in any
653	act or practice in or from this state, which act or practice
654	constitutes a violation of any provision of the Commodity
655	Exchange Act, 7 U.S.C. ss. 1 et seq., as amended, or the rules
656	and regulations of the Commodity Futures Trading Commission
657	adopted under that act as amended upon the effective date of
658	this act.
659	Section 14.  Subsection (9) of section 905.34, Florida
660	Statutes, is amended, and subsections (11) and (12) are added to
661	that section, to read:
662	905.34  Powers and duties; law applicable.--The
663	jurisdiction of a statewide grand jury impaneled under this
664	chapter shall extend throughout the state. The subject matter
665	jurisdiction of the statewide grand jury shall be limited to the
666	offenses of:
667	(9)  Any criminal violation of part I of chapter 499; or
668	(11)  Any criminal violation of the Florida Money
669	Laundering Act; or
670	(12)  Any criminal violation of the Florida Securities and
671	Investor Protection Act;
672
673	or any attempt, solicitation, or conspiracy to commit any
674	violation of the crimes specifically enumerated above, when any
675	such offense is occurring, or has occurred, in two or more
676	judicial circuits as part of a related transaction or when any
677	such offense is connected with an organized criminal conspiracy
678	affecting two or more judicial circuits. The statewide grand
679	jury may return indictments and presentments irrespective of the
680	county or judicial circuit where the offense is committed or
681	triable. If an indictment is returned, it shall be certified and
682	transferred for trial to the county where the offense was
683	committed. The powers and duties of, and law applicable to,
684	county grand juries shall apply to a statewide grand jury except
685	when such powers, duties, and law are inconsistent with the
686	provisions of ss. 905.31-905.40.
687	Section 15.  This act shall take effect July 1, 2009.

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