Ga. Comp. R. & Regs. R. 80-12-12-.01 - Administrative Fines and Penalties
(1)
In addition to all other enforcement actions available to it, the Department
establishes the following fines and penalties for violation of the Act or its
rules:
(a) Deposit taking. An MALPB that
takes or holds a deposit from an individual or entity other than a corporation
that owns a majority of the shares of the MALPB in violation of O.C.G.A. §
7-9-12 shall be subject to a fine
of $10,000 for each day that a prohibited deposit is held.
(b) Unapproved incidental activities. An
MALPB that engages in incidental activities without prior written approval from
the Department in violation of Rule
80-12-4-.01(2)
shall be subject to a fine of $5,000 for each day the unapproved incidental
activity is engaged in by the MALPB.
(c) Unauthorized activities. An MALPB that
engages in unauthorized activities in violation of Rule
80-12-4-.01(3) or
80-12-4-.01(4)
shall be subject to a fine of $10,000 for each individual occasion the MALPB
engaged in the unauthorized activity.
(d) Self-acquiring activities. An MALPB that
engages in self-acquiring activities in violation of O.C.G.A. §
7-9-12 or Rule
80-12-4-.02(1)
shall be subject to a fine of $1,000 for each impermissible
transaction.
(e) Control by a
merchant. An MALPB or MALPB holding company that is controlled by a merchant in
violation of Rule
80-12-4-.02 shall be subject to a
fine of $10,000 per day until the merchant no longer exercises control over the
MALPB or the MALPB holding company.
(f) Minimum number of employees. An MALPB
that fails to continuously employee the number of required employees that
reside in Georgia within the first year of beginning operations in violation of
Rule 80-12-4-.04
shall be subject to a fine of $10,000 per day that the MALPB fails to satisfy
this requirement.
(g) Hiring a
felon. An MALPB that hires or retains an employee that has been convicted of a
felony shall be subject to a fine of $10,000 per employee or former employee
found to be convicted of a felony.
(h) Advertising. An MALPB that fails to
comply with the advertising limitations in violation of Rule
80-12-4-.06 shall be subject to a
fine of $1,000 for each violation.
(i) Untimely SRRs. An MALPB that fails to
make or file its SRRs within the appropriate period of time in violation of
Rule 80-12-5-.04
shall be subject to a fine of $1,000 per day that each SRR is not
filed.
(j) Untimely reports. An
MALPB that fails to make or file a report within the appropriate period of time
in violation of Rule
80-12-5-.04, other than an SRR,
shall be subject to a fine of $500 per day that the report is not
filed.
(k) Books and records
violations. If the Department finds that an MALPB has failed to maintain its
books and records as required by Rules
80-12-5-.05 or Rules
80-12-5-.06, the MALPB shall be
subject to a fine of $5,000 for each violation of the books and records
requirements set forth in the Department's rules.
(l) Relocation of main office. An MALPB that
relocates its main office without the Department's prior written approval in
violation of Rule
80-12-6-.01 shall be subject to a
fine of $5,000.
(m) Unapproved
office. An MALPB that operates an unapproved location in violation of Rule
80-12-6-.02 shall be subject to a
fine of $5,000 per unapproved location.
(n) Refusal to submit to examination. An
MALPB that refuses to permit an investigation or examination of its books and
records by the Department or a third-party expert designated by the Department
pursuant to Rule
80-12-2-.09 or Rule
80-12-6-.03 shall be subject to a
fine of $20,000 for each day the refusal continues.
(o) False statements. An MALPB that makes
false statements or material misrepresentations to the Department or any of its
agents, including, but not limited to any third-party expert retained to assist
the Department, in connection with any examination, investigation, or records
or reports made available to the Department shall be subject to a fine of
$10,000 for each false statement or material misrepresentation.
(p) Minimum capital requirements. An MALPB
that fails to continuously maintain the minimum leverage capital ratio, PV
capital, risk capital, or statutory capital requirement in violation of Rule
80-12-7-.01 shall be subject to a
fine of $10,000 for each day it is below the minimum capital
requirement.
(q)
Reserved.
(r) Eligible organization
or support organization. An MALPB that enters into a contract or amends a
contract with an eligible organization or support organization and fails to
provide the Department with timely notice in violation of Rule
80-12-8-.02 shall be subject to a
fine of $5,000.
(s) Intercompany
dealings. An MALPB that engages in unauthorized intercompany dealings in
violation of Rule
80-12-9-.01 shall be subject to a
fine of $5,000 per each unauthorized transaction.
(t) Control person and principal shareholders
of MALPB. An MALPB that has a new control person or principal shareholder
without complying with the notice provisions set forth in Rules
80-12-10-.01 or
80-12-11-.02, shall be subject to a
fine of $25,000.
(u) Directors and
executive officers of MALPB. An MALPB that appoints a new director or employs a
new executive officer without complying with the notice provisions set forth in
Rule 80-12-10-.01,
shall be subject to a fine of $5,000.
(v) Directors and principal shareholders of
holding company. An MALPB holding company that appoints a new director or has a
new principal shareholder without complying with the notice provisions set
forth in Rule
80-12-11-.02 shall be subject to a
fine of $5,000.
(w) Acquisition. An
MALPB that is acquired without first obtaining the Department's prior written
approval in violation of Rules
80-12-10-.02 or
80-12-11-.03 shall be subject to a
fine of $100,000 each day until the transaction is unwound.
(x) Unapproved activities. Unless otherwise
addressed in this regulation, an MALPB that takes any action that requires
Department approval without first obtaining the Department's prior written
approval shall be subject to a fine or $5,000 for each such
occurrence.
(y) Merchant funds. An
MALPB that fails to deposit and account for merchant funds as required by Rule
80-12-7-.02 shall be subject to a
fine of $50,000 for each day that merchant funds are not properly accounted for
or deposited.
(2) The
Department, in its sole discretion, may waive or modify a fine based upon the
gravity of the violation, history of previous violations, willfulness of the
violation, and the facts and circumstances of the violation.
(3) All fines levied by the Department are
due within thirty (30) days after the date of assessment.
(4) All fines paid to the Department are
nonrefundable.
Notes
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