South Carolina General Assembly
109th Session, 1991-1992

Bill 1394


                    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

History


 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 Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(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.