s. · of the comptroller. the secretary of 1commerce shall provide the comptroller any needed...
TRANSCRIPT
s. 517.2015 1996 SUPPLEMENT TO FLORIDA STATUTES 1995 s. 519.101
pteted or ceases to be active. The information compiled by the department in such an investigation or examination shall remain confidential and exempt from s. 119.07(1) after the department's investigation or examination is completed or ceases to be active if the department submits the information to any law enforcement or administrative agency or regulatory organization for further investigation. Such information shall remain confidential and exempt from s. 119.07( 1) until that agency's or organization's investigation is completed or ceases to be active. For purposes of this section, an investigation or examination shall be considered "active" so long as the department or any law enforcement or administrative agency or regulatory organization is proceeding with reasonable dispatch and has a reasonable good faith belief that the investigation or examination may lead to the filing of an administrative, civil, or criminal proceeding or to the denial or conditional grant of a license, registration, or permit. This section shall not be construed to prohibit disclosure of information which is required by law to be filed with the department and which, but for the investigation or examination, would be subject to s. 119.07(1 ).
(b) Except as necessary for the department to enforce the provisions of this chapter, a consumer complaint and other information relative to an investigation or examination shall remain confidential and exempt from s. 119.07(1) after the investigation or examination is completed or ceases to be active to the extent disclosure would:
1. Jeopardize the integrity of another active investi-gation or examination.
2. Reveal the name, address, telephone number, social security number, or any other identifying number or information of any complainant, customer, or account holder.
3. Disclose the identity of a confidential source. 4. Disclose investigative techniques or procedures. 5. Reveal a trade secret as defined in s. 688.002. (c) In the event that department personnel are or
have been involved in an investigation or examination of such nature as to endanger their lives or physical safety or that of their fami lies, then the home addresses, telephone numbers , places of employment, and photographs of such personnel, together with the home addresses, telephone numbers, photographs , and places of employment of spouses and children of such personnel and the names and locations of schools and day care facilities attended by the children of such personnel are confidential and exempt from s. 119.07(1 ).
(d) Nothing in this section shall be construed to prohibit the department from providing information to any law enforcement or administrative agency or regulatory organization. Any law enforcement or administrative agency or regulatory organization receiving confidential information in connection with its official duties shall maintain the confidentiality of the information so long as it would otherwise be confidential.
(e) All information obtained by the department from any person which is only made available to the department on a confidential or similarly restricted basis shall be confidential and exempt from s. 119.07(1). This exemption shall not be construed to prohibit disclosure
of information which is required by law to be filed with the department or which is otherwise subject to s. 119.07(1 ).
(2) If information subject to subsection (1) is offered in evidence in any administrative, civil, or criminal proceeding, the presiding officer may, in his discretion, prevent the disclosure of information which would be confidential pursuant to paragraph (1 )(b).
(3) A privilege against civil liability is granted to a person who furnishes information or evidence to the department, unless such person acts in bad faith or with malice in providing such information or evidence.
HistoTy.- s. 4. ch. 92- 9: s. 337. ch. 96-406.
517.221 Cease and desist orders.-(1) The department may issue and serve upon a per
son a cease and desist order whenever the department has reason to believe that such person is violating, has violated, or is about to violate any provision of this chapter, any rule or order promulgated by the department, or any written agreement entered into with the department.
(2) Whenever the department finds that conduct described in subsection (1) presents an immediate danger to the public requiring an immediate final order, it may issue an emergency cease and desist order reciting with particularity the facts underlying such findings. The emergency cease and desist order is effective immediately upon service of a copy of the order on the respon· dent named therein and remains effective for 90 days. If the department begins nonemergency cease and desist proceedings under subsection (1 ), the emergency cease and desist order remains effective until conclusion of the proceedings under ss. 120.569 and 120.57.
(3) The department may impose and collect an administrative fine against any person found to have violated any provision of this chapter, any rule or order promulgated by the department , or any written agreement entered into with the department in an amount not to exceed $5,000 for each such violation. All fines collected hereunder shall be deposited as received in the AntiF raud Trust Fund.
Hiatory.-s. 5, ch. 78-435: s. 5, ch. 00-·254: ss. 2, 3, ch. Bl - 318; s . 11, ch. BS-85: ss. 14, 15, ch. 90- 362: s. 4, ch. 91- 429; s. 244, ch. 96-410.
CHAPTER 519
EQUITY EXCHANGES
519.101 Florida equity exchange feasibi lity study; structure, operation, and regulation.
519.101 Florida equity exchange feasibility study; structure, operation, and regulation.-
(1) There may be created one or more Florida equity exchanges, with one or more offices each, upon a determination by the Comptroller that each such exchange has a reasonable promise of successful operation, will promote economic development, will produce net economic benefits in the state, and will not expose the public to undue risk of financial loss. This determination shall
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s. 519.101 1996 SUPPLEMENT TO FLORIDA STATUTES 1995 5. 519.101
be based on the results of a feasibility study concerning the possible structure, operation, and regulation of each such exchange, to be carried out under the supervision of the Comptroller. The Secretary of 1commerce shall provide the Comptroller any needed advice on economic development aspects of the feasibility study. Said feasibility study shall evaluate to what extent securities laws may limit the transferability of investments in which any exchange would deal; to what extent companies financed through securities in which the exchange would deal would prefer a stable group of investors; to what extent the particular investment objectives of potential participants in any exchange might be inconsistent with an exchange operation; and the possibility that the frequency of investment opportunities of the type in which an exchange would deal would be too low to economically operate any exchange. The determination of the Comptroller shall constitute a final order as defined in s. 120.52 and shall be subject to the provisions of chapter 120. Nothing in this section, however, shall be construed to require the expenditure of state funds for the purpose of conducting any such feasibility study. For the purposes of this section, the term "exchange" shall apply to any such Florida equity exchange proposed or created under this section.
(2) The purpose of the exchange shall be to provide a marketplace for the negotiation, arrangement, exchange, sale, purchase, brokerage, syndication, and underwriting, and all activities incidental thereto, of investment opportunities, in an institutionalized and, to the maximum extent possible, self-regulated fashion.
(3) Within 30 days following such determination, a committee shall be appointed to write the constitution and bylaws of the exchange. The Comptroller may provide technical assistance to the committee on the development of the constitution and bylaws of the exchange. The committee shall consist of 15 members, 11 members to be appointed by the Governor, 2 members to be appointed by the Speaker of the House of Representatives, and 2 members to be appointed by the President of the Senate. The chairman shall be elected by a majority of the committee. The committee shall transmit such proposed constitution, bylaws, and other recommendations for the approval of the Comptroller no later than 90 days following the first meeting of the committee. In reviewing the constitution and the bylaws of the exchange, as well as any other recommendations made to the Comptroller by the committee, the Comptroller shall consider whether such constitution, bylaws, and recommendations are reasonably consistent with the public interest and the efficient functioning of the exchange. The Comptroller shall approve the constitution and bylaws of the exchange if he finds that they specifically describe the types of business that the exchange will conduct, that such business activities are not inconsistent with state or federal law, that the form of business organization of the exchange complies with statutory requirements, and that the interest of owners or members of the exchange would be adequately protected. The submission of the proposed constitution and bylaws to the Comptroller shall be deemed an application for a license and shall be subject to the provisions of s. 120.80(9).
(4) The exchange shall have full authority to function 60 days after its constitution and bylaws are approved by the Comptroller. The initial Board of Governors of the exchange shall consist of the members of the committee who shall serve until the first election pursuant to the constitution and bylaws. If the constitution and bylaws are disapproved by the Comptroller, the committee, in consultation with the Comptroller, shall have 60 days from the date of such disapproval within which to submit an acceptable constitution and bylaws.
(5) The constitution and bylaws of the exchange shall include provision that:
(a) There shall be no less than 9 nor more than 15 governors of the exchange, at least one-third of whom shall not be members of the exchange.
(b) The principal offices of each exchange and the principal offices of its members shall be located within this state for the purpose of conducting the type of business described in subsection (2). Any exchange may have such other offices around the state as it deems necessary from time to time, subject to a determination by the Comptroller that such additional offices will be necessary for the efficient operation of the exchange and will be in the public interest.
(c) All members and applicants for membership on the exchange shall submit all financial information reasonably required by the Comptroller.
(d) The ex.change shall establish or participate in a security fund which shall be capitalized or underwritten in such form and amount as will reasonably protect persons transacting business through the exchange from any harm or loss occasioned by the insolvency of any member of the exchange. The formation of such security fund and the adequacy of the financial security provided thereby shall be subject to the approval of the Department of Banking and Finance based Upon the types and amounts of transactions effected through the facilities of the exchange.
(e) Rules shall be adopted prescribing eligibility for membership and the voting power, duties, and rights to participate in the conduct and management of the affairs of the exchange by the members thereof, such rights and duties to include, without limitation, the manner and form of conducting business, financial stability requirements, dues, membership fees, resolution of dispute mechanisms, and all other matters necessary or appropriate to conduct any business permitted herein; however, such rules shall not impose any limit on the number of members of any such exchange. Any amendments to the constitution and bylaws shall be subject to the approval of the Comptroller.
(f) Elections to the Board of Governors of the exchange shall be held once every 2 years, with those persons receiving the greatest number of votes cast being elected thereto.
(6) If the exchange contemplated by this section is established, the Comptroller shall furnish the chairmen of the finance and taxation committees of the Legislature with copies of its constitution and bylaws. Upon receipt of the constitution and bylaws, the Legislature shall consider what tax policy and tax exemptions are needed to facilitate successful operation of the exchange.
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s. 519.101 1996 SUPPLEMENT TO FLORIDA STATUTES 1995 s. 520.9965
(7) If the exchange contemplated by this section is finally established, the Comptroller shall forthwith adopt rules providing for the reimbursement by the exchange or any member thereof of the actual costs incurred by the Comptroller in connection with the regulation and supervision of the exchange. As used in this section, "actual costs' means all direct and indirect costs and expenses incurred by the Comptroller in connection with the exchange including, without limitation, general administrative costs, travel expenses, salaries, and other benefits given to persons involved in the regulation and supervision of the exchange. The Comptroller shall have the power to make any allocations that are deemed reasonable and necessary and may require the exchange or any members to pay interim assessments related to estimated final assessments.
(8) The Florida securities laws and rules shall apply to the exchange and to its members.
(9) The Comptroller may establish limitations on investments in members of the exchange by any person or company, consistent with the public interest and the efficient functioning of the exchange.
Hietory.-s. 2, ch. 86-152; s . 2, ch. 86-180; s . 2, ch. 66-216; s . 36, ch. 91-220; s. 245, ch. 96-410.
1Note. - Section 20.17, which created the Department of Commerce, was repealed effective December 31. 1996, by s. 3, ch. 96-320.
CHAPTER 520
RETAIL INSTALLMENT SALES
PARTY
DEPARTMENT REGULATION OF SALES AND FINANCE
520.994 Powers of department. 520.9965 Confidentiality of information relating to
investigations and examinations.
520.994 Powers of department.-( 1) The department may issue and serve subpoenas
to compel the attendance of witnesses and the production of documents, papers, books, records, and other evidence before it in any matter pertaining to this chapter. The department may administer oaths and affirmations to any person whose testimony is required . If any person refuses to testify, produce books, records, and documents, or otherwise refuses to obey a subpoena issued under this section, the department may present its petition to a court of competent jurisdiction in or for the county in which such person resides or has its principal place of business, whereupon the court shall issue its rule nisi requiring such person to obey forthwith the subpoena issued by the department or show cause for failing to obey such subpoena. Unless the person shows sufficient cause for failing to obey the subpoena. the court shall for.thwith direct such person to obey the subpoena, subject to such punishment as the court may direct, including, but not limited to, the restraint, by injunction or by appointment of a receiver, of any transfer, pledge, assignment, or other disposition of such person's assets or any concealment, alteration, destruc-
lion, or other disposition of subpoenaed books, records, or documents as the court deems appropriate, until such person has fully complied with such subpoena and the department has completed its investigation or examination. The department is entitled to the summary procedure provided in s. 51.011, and the court shall advance the cause on its calendar. Costs incurred by the department to obtain an order granting, in whole or in part, its petition shall be taxed against the subpoenaed person, and failure to comply with such order is a contempt of court. Witnesses are entitled to the same fees and mileage as they are entitled to by law for attending as witnesses in the circuit court, unless such examination or investigation is held at the place of business or residence of the witness.
(2) In addition to any other powers conferred upon it to enforce or administer this chapter, the department may bring an action in any court of competent jurisdiction to enforce or administer any provision of this chapter, any rule or order adopted pursuant to this chapter, or any written agreement entered into with the department. In such action, the department may seek temporary or permanent injunction, appointment of a receiver or administrator, or an order of restitution. If in any such action the department alleges that five or more persons have been defrauded by acts constituting violations of this chapter, it shall state the circumstances constituting such fraud with particularity and may seek any appropriate remedy at law or in equity, provided the remedy does not impair any rights granted by law to any holder in due course as defined in 1s. 673.302.
(3) In addition to any other powers conferred upon it to enforce or administer this chapter, the department may issue and serve upon a person a cease and desist order whenever the department finds that such person is violating, has violated, or is about to violate any provision of this chapter, any rule or order adopted pursuant to this chapter, or any written agreement entered into with the department. Any such order shall contain a notice of the rights provided by ss. 120.569 and 120.57.
(4) In addition to any other powers conferred upon it to enforce or administer this chapter, the department may impose and collect an administrative fine against any person found to have violated any provision of this chapter, any rule or order adopted pursuant to this chapter, or any written agreement entered into with the department, in an amount not to exceed $1,000 for each violation.
(5) The department may adopt rules and perform such other acts as are necessary or convenient for the proper administration, enforcement, and interpretation of this chapter.
History.-ss. 34, 36. ch. 90-103; s. 4, ch. 91-429; s . 246, ch. 96-410. 1Hote.- Repealed bys. 1, ch. 92- 62
520.9965 Confidentiality of information relating to investigations and examinations.-
(1 )(a) Except as otherwise provided by this section, information relative to an investigation or examination by the department pursuant to this chapter, including any consumer complaint, is confidential and exempt from s. 119.07(1) until the investigation or examination is completed or ceases to be active. The information compiled
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