Current Status Introducing Body:Senate Bill Number:1394 Ratification Number:537 Act Number:451 Primary Sponsor:Bryan Type of Legislation:GB Subject:Uniform Securities Act Companion Bill Number:4593 Date Bill Passed both Bodies:Jun 02, 1992 Computer Document Number:CYY/18907.SD Governor's Action:S Date of Governor's Action:Jun 15, 1992 Introduced Date:Mar 17, 1992 Date of Last Amendment:May 27, 1992 Last History Body:------ Last History Date:Jun 15, 1992 Last History Type:Act No. 451 Scope of Legislation:Statewide All Sponsors:Bryan J. Verne Smith Courtney Mullinax Rose Thomas Lourie Wilson Type of Legislation:General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 1394 ------ Jun 15, 1992 Act No. 451 1394 ------ Jun 15, 1992 Signed by Governor 1394 ------ Jun 04, 1992 Ratified R 537 1394 Senate Jun 02, 1992 Concurred in House amendment, enrolled for ratification 1394 House May 28, 1992 Read third time, returned to Senate with amendment 1394 House May 27, 1992 Amended, read second time 1394 House May 19, 1992 Committee Report: Favorable 26 with amendment 1394 House Apr 02, 1992 Introduced, read first time, 26 referred to Committee 1394 Senate Apr 01, 1992 Read third time, sent to House 1394 Senate Mar 31, 1992 Read second time 1394 Senate Mar 26, 1992 Committee Report: Favorable 02 1394 Senate Mar 17, 1992 Introduced, read first time, 02 referred to CommitteeView additional legislative information at the LPITS web site.
(A451, R537, S1394)
AN ACT TO AMEND SECTION 35-1-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROMULGATION OF RULES, FORMS, AND ORDERS BY THE SECURITIES COMMISSIONER UNDER THE UNIFORM SECURITIES ACT, SO AS TO AUTHORIZE THE COMMISSIONER TO ISSUE CEASE AND DESIST ORDERS; TO AMEND SECTION 35-1-540, RELATING TO THE TIME LIMITATION ON SUSPENSION OR REVOCATION PROCEEDINGS INSTITUTED BY THE COMMISSIONER, SO AS TO REVISE THIS TIME LIMITATION; TO AMEND SECTION 35-1-1310, RELATING TO PETITIONS FOR REVIEW OF FINAL ORDERS OF THE COMMISSIONER IN A COURT OF COMPETENT JURISDICTION, SO AS TO REVISE THE TIME WITHIN WHICH A PETITION FOR SUCH A REVIEW MAY BE FILED AND FOR THE MANNER IN WHICH THE FINAL ORDERS OF THE COMMISSIONER MAY BE STAYED; TO AMEND SECTION 35-1-1460, RELATING TO THE SECURITIES COMMISSIONER APPLYING TO A COURT OF COMPETENT JURISDICTION TO COMPEL OBEDIENCE OF WITNESSES, SO AS TO AUTHORIZE THE COURT TO IMPOSE CERTAIN FINES FOR FAILURE TO COMPLY AND TO PROVIDE THAT THE COURT MAY AWARD TO THE SECURITIES COMMISSIONER FEES AND COSTS INCURRED IN APPEARING BEFORE THE COURT; TO AMEND THE 1976 CODE BY ADDING SECTION 35-1-1475 SO AS TO AUTHORIZE THE SECURITIES COMMISSIONER TO IMPOSE AND COLLECT CERTAIN ADMINISTRATIVE FINES; TO AMEND SECTION 35-1-1580, RELATING TO THE INSTITUTION OF CRIMINAL PROCEEDINGS BY THE ATTORNEY GENERAL AFTER REFERENCE TO HIM OF EVIDENCE BY THE SECURITIES COMMISSIONER, SO AS TO ALSO AUTHORIZE A CIRCUIT SOLICITOR TO INSTITUTE SUCH PROCEEDINGS; AND TO AMEND SECTION 35-1-1590, RELATING TO CRIMINAL PENALTIES FOR WILFULL VIOLATIONS OF THE UNIFORM SECURITIES ACT, SO AS TO INCREASE THE DOLLAR AMOUNT OF THE AUTHORIZED FINE.
Be it enacted by the General Assembly of the State of South Carolina:
Cease and desist orders
SECTION 1. Section 35-1-60 of the 1976 Code is amended to read:
"Section 35-1-60. The Securities Commissioner may make, amend, and rescind those rules, forms, and orders, including cease and desist orders, as are necessary to carry out the provisions of this chapter, including rules and forms governing registration statements, applications, and reports and defining any terms, whether or not used in this chapter, insofar as the definitions are not inconsistent with the provisions of this chapter. For the purpose of rules and forms, the Securities Commissioner may classify securities, persons, and matters within his jurisdiction and prescribe different requirements for different classes.
No rule, form, or order may be made, amended, or rescinded unless the Securities Commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of this chapter. In prescribing rules and forms the Securities Commissioner may cooperate with the securities administrators of the other states and the Securities and Exchange Commission with a view to effectuating the policy of this chapter to achieve maximum uniformity in the form and content of registration statements, applications, and reports wherever practicable.
All rules and forms of the Securities Commissioner must be published."
Time limitation revised
SECTION 2. Section 35-1-540 of the 1976 Code is amended to read:
"Section 35-1-540. The Securities Commissioner may not institute a suspension or revocation proceeding on the basis of a fact or transaction actually known to him when registration became effective unless the proceeding is instituted within the next one hundred sixty days; provided that this time limitation is suspended during the time period of any investigation commenced by the Securities Commissioner."
Review and stay of final orders
SECTION 3. Section 35-1-1310 of the 1976 Code is amended to read:
"Section 35-1-1310. Any person aggrieved by a final order of the Securities Commissioner may obtain a review of the order in the court of common pleas for Richland County or in the county wherein the person resides by filing in court, within thirty days after the entry of the order, a written petition praying that the order be modified or set aside in whole or in part. The filing of a written petition for review, accompanied by the posting of any bond set by the court in which a petition is filed, shall stay the effectiveness of the commissioner's final order until such time as the court has reviewed the order. A copy of the petition must be served upon the Securities Commissioner, and the Securities Commissioner shall certify and file in court a copy of the filing and evidence upon which the order was entered. When these have been filed, the court has exclusive jurisdiction to affirm, modify, enforce or set aside the order, in whole or in part. The findings of the Securities Commissioner as to the facts, if supported by competent, material, and substantial evidence, are conclusive."
Fines, fees, and costs may be imposed or awarded
SECTION 4. Section 35-1-1460 of the 1976 Code is amended to read:
"Section 35-1-1460. In case of contumacy by, or refusal to obey a subpoena issued to, any person, the court of common pleas, upon application by the Securities Commissioner, may issue to the person an order requiring him to appear before the Securities Commissioner or the officer designated by him, to produce documentary evidence, if so ordered, or to give evidence touching the matter under investigation or in question. The court may fine the person not exceeding three thousand dollars if it finds that the person's failure to respond fully to the subpoena was not in good faith or was for purposes of delay. In any case the court may award the Securities Commissioner fees and costs incurred in appearing before the court. Failure to obey the order of the court may be punished by the court as a contempt of court in addition to the other penalties authorized by this section."
Administrative fine
SECTION 5. The 1976 Code is amended by adding:
"Section 35-1-1475. The Securities Commissioner 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 commissioner, or any written agreement entered into with the commissioner in an amount not exceeding five thousand dollars for each violation."
Instituting criminal proceedings
SECTION 6. Section 35-1-1580 of the 1976 Code is amended to read:
"Section 35-1-1580. The Securities Commissioner may refer that evidence as is available concerning violations of this chapter or of any rule or order under this chapter to the Attorney General or the appropriate circuit solicitor, who may, with or without such a reference, institute the appropriate criminal proceedings under this chapter."
Amount of fine increased
SECTION 7. Section 35-1-1590 of the 1976 Code is amended to read:
"Section 35-1-1590. Any person who wilfully violates any provision of this chapter except Section 35-1-160, who wilfully violates any rule or order under this chapter or who wilfully violates Section 35-1-160, knowing the statement made to be false or misleading in any material respect, is guilty of a misdemeanor and, upon conviction, must be fined not more than fifty thousand dollars or imprisoned not more than three years, or both. However, no person may be imprisoned for the violation of any rule or order if he proves that he had no knowledge of the rule or order."
Time effective
SECTION 8. This act takes effect upon approval by the Governor.
Approved the 15th day of June, 1992.