2011-2012 Bill 5038: Cease and Desist Orders Issued by Securities Commissioner - South

1 South Carolina General Assembly 2 119th Session, 2011-2012 3 4 H. 5038 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Reps. Putnam, Thayer, Bowen, Agnew, Gambrell and White 10 Document Path: l:\council\bills\dka\4026sd12.docx 11 12 Introduced in the House on March 20, 2012 13 Currently residing in the House Committee on Judiciary 14 15 Summary: Cease and desist orders issued by Securities Commissioner 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 3/20/2012 House Introduced and read first time ( House Journalpage 47) 22 3/20/2012 House Referred to Committee on Judiciary ( House Journalpage 47) 23 24 25 VERSIONS OF THIS BILL 26 27 3/20/2012 28 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 351604, CODE OF LAWS OF SOUTH 12 CAROLINA, 1976, RELATING TO THE ADMINISTRATIVE 13 ENFORCEMENT OF THE UNIFORM SECURITIES ACT BY 14 THE ATTORNEY GENERAL ACTING AS THE SECURITIES 15 COMMISSIONER INCLUDING THE AUTHORITY TO ISSUE 16 CEASE AND DESIST ORDERS, SO AS TO REQUIRE CEASE 17 AND DESIST ORDERS ISSUED BY THE SECURITIES 18 COMMISSIONER TO BE AFFIXED BY THE PERSON OR 19 ENTITY WHO IS THE SUBJECT OF THE ORDER TO EACH 20 ENTRANCE OF THE PLACE OF BUSINESS WHERE THE 21 COMMISSIONER DETERMINES THE VIOLATION 22 OCCURRED, TO PROVIDE FOR THE NOTIFICATION OF 23 PRINT AND BROADCAST MEDIA AND OTHER ENTITIES 24 OF THE ISSUANCE OF SUCH CEASE AND DESIST ORDERS 25 BY THE COMMISSIONER, AND TO PROVIDE FOR A CIVIL 26 FINE TO BE IMPOSED FOR FAILURE TO AFFIX THE 27 ORDERS TO THE ENTRANCES OF THE PLACE OF 28 BUSINESS WHERE THE VIOLATION OCCURRED. 29 30 Be it enacted by the General Assembly of the State of South 31 Carolina: 32 33 SECTION 1. Section 35-1-604 of the 1976 Code is amended by 34 adding a new subsection to read: 35 36 “(h)(1) When the Securities Commissioner has issued a cease 37 and desist order under the provisions of this section directing a 38 person or entity to cease and desist from engaging in an act, 39 practice, or course of business in violation of this chapter, the 40 person or entity who is the subject of the order is required to affix 41 a copy of the order to each entrance of the place of business where 42 the Commissioner determines the violation occurred which shall

[5038] 2 1 remain affixed for a period of ninety days or until such time as a 2 court of competent jurisdiction orders the cease and desist order 3 removed. In addition, the Securities Commissioner shall notify 4 print and broadcast media outlets and the Better Business Bureau, 5 if any, in the community where the violation occurred of the 6 issuance of the cease and desist order, that it can be located on the 7 Securities Commissioner’s website, and that it may be subject to 8 further procedural steps or appeals. 9 (2) A person or entity who is the subject of a cease and 10 desist order and who fails to post the order as required by item (1) 11 of this subsection, in addition to all other penalties provided by 12 law, may be punished by a civil fine to be imposed by the 13 Securities Commissioner of one thousand dollars per day for each 14 day the failure to post the cease and desist order occurred. 15 (3) The confidentiality provisions of Section 35-1-607 and 16 the State Freedom of Information Act do not apply to the contents 17 of cease and desist orders subject to the provisions of this 18 subsection.” 19 20 SECTION 2. This act takes effect upon approval by the 21 Governor. 22 XX 23

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