Bill Text: OH HB52 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To specify the form of financial statements and to include administrative assessments and other remedies as a remedy for a violation of the Ohio Securities Act.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-01-26 - To Financial Institutions, Housing & Urban Development [HB52 Detail]

Download: Ohio-2011-HB52-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 52

Representatives Snitchler, Okey 

Cosponsors: Representatives Burke, Huffman, Murray, Pillich, Blessing 

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A BILL

To amend section 1707.20 and to enact section 1707.49

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of the Revised Code to specify the form of

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financial statements and to include administrative

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assessments and other remedies as a remedy for a

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violation of the Ohio Securities Act.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 1707.20 be amended and section	6
1707.49 of the Revised Code be enacted to read as follows:	7

Sec. 1707.20.  (A)(1) The division of securities may adopt,	8
amend, and rescind such rules, forms, and orders as are necessary	9
to carry out sections 1707.01 to 1707.45 of the Revised Code,	10
including rules and forms governing registration statements,	11
applications, and reports, and defining any terms, whether or not	12
used in sections 1707.01 to 1707.45 of the Revised Code, insofar	13
as the definitions are not inconsistent with these sections. For	14
the purpose of rules and forms, the division may classify	15
securities, persons, and matters within its jurisdiction, and	16
prescribe different requirements for different classes.	17

(2) Notwithstanding sections 121.71 to 121.76 of the Revised	18
Code, the division may incorporate by reference into its rules any	19
statute enacted by the United States congress or any rule,	20
regulation, or form promulgated by the securities and exchange	21
commission, or by another federal agency, in a manner that also	22
incorporates all future amendments to the statute, rule,	23
regulation, or form.	24

(B) No rule, form, or order may be made, amended, or	25
rescinded unless the division finds that the action is necessary	26
or appropriate in the public interest or for the protection of	27
investors, clients, prospective clients, state retirement systems,	28
or the workers' compensation system and consistent with the	29
purposes fairly intended by the policy and provisions of sections	30
1707.01 to 1707.45 of the Revised Code. In prescribing rules and	31
forms and in otherwise administering sections 1707.01 to 1707.45	32
of the Revised Code, the division may cooperate with the	33
securities administrators of the other states and the securities	34
and exchange commission with a view of effectuating the policy of	35
this section to achieve maximum uniformity in the form and content	36
of registration statements, applications, reports, and overall	37
securities regulation wherever practicable.	38

(C) The division may by rule or order prescribe:

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(1) The form and content of financial statements required	40
under sections 1707.01 to 1707.45 of the Revised Code;	41

(2) The circumstances under which consolidated financial	42
statements will be filed;	43

(3) Whether any required financial statements shall be	44
certifiedaudited by independent or certified public accountants.	45
All financial statements shall be prepared in accordance with	46
generally accepted accounting practicesprinciples and comply with	47
other requirements specified by rule adopted or order issued under	48
sections 1707.01 to 1707.45 of the Revised Code.	49

(D) All rules and forms of the division shall be published;	50
and in addition to fulfilling the requirements of Chapter 119. of	51
the Revised Code, the division shall prescribe, and shall publish	52
and make available its rules regarding the sale of securities, the	53
administration of sections 1707.01 to 1707.45 of the Revised Code,	54
and the procedure and practice before the division.	55

(E)(1) No provision of sections 1707.01 to 1707.45 of the	56
Revised Code imposing any liability applies to any act done or	57
omitted in good faith in conformity with any rule, form, or order	58
of the division of securities, notwithstanding that the rule,	59
form, or order may later be amended or rescinded or be determined	60
by judicial or other authority to be invalid for any reason,	61
except that the issuance of an order granting effectiveness to a	62
registration under section 1707.09 or 1707.091 of the Revised Code	63
for the purposes of this division shall not be deemed an order	64
other than as the establishment of the fact of registration.	65

(2) No provision of sections 1707.01 to 1707.45 of the	66
Revised Code imposing any liability, penalty, sanction, or	67
disqualification applies to any act done or omitted in good faith	68
in conformity with either of the following:	69

(a) Any provision of sections 1707.01 to 1707.45 of the	70
Revised Code that incorporates by reference a federal statute,	71
rule, regulation, or form;	72

(b) Any rule, form, or order of the division that	73
incorporates by reference a federal statute, rule, regulation, or	74
form.	75

Division (E)(2) of this section applies notwithstanding that	76
the incorporation by reference, or any application of the	77
incorporated provision, is later determined by judicial or other	78
authority to be unconstitutional or invalid for any reason.	79

Sec. 1707.49.  (A) If the commissioner finds, as a result of	80
an investigation, that any person has violated any provision of	81
this chapter, or any rule or order adopted or issued under this	82
chapter, the commissioner may, in the commissioner's discretion	83
and in addition to other remedies provided in this chapter, order	84
the payment of an administrative assessment not to exceed ten	85
thousand dollars for any single violation.	86

(B) Each violation shall be treated as a separate offense. In	87
the case of a continuing violation, each day of continued	88
violation constitutes a separate offense.	89

(C) An administrative assessment collected pursuant to	90
division (A) of this section shall be deposited into the division	91
of securities investor education and enforcement expense fund	92
created by division (B) of section 1707.37 of the Revised Code.	93

(D) The commissioner may, in addition to or in lieu of	94
ordering an administrative assessment under division (A) of this	95
section, issue an order directed at a person who has engaged in an	96
act, practice, or course of business constituting a violation of	97
this chapter to do any of the following:	98

(1) Rescind the transaction related to the violation;

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(2) Order the person to disgorge any assets acquired or	100
profits made as a result of the violation;	101

(3) Order the person to make restitution;

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(4) Order the person to pay the costs of the investigation or	103
costs of expenses, including attorney's and witness fees;	104

(5) Order the person to pay interest at the legal rate on any	105
payment ordered under division (D)(3) or (4) of this section.	106

(E) The limitations on administrative assessments contained	107
in this section shall not apply to settlement agreements.	108

Section 2. That existing section 1707.20 of the Revised Code	109
is hereby repealed.	110