Rule 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.(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.Ga. Comp. R. & Regs. R. 80-12-12-.01
O.C.G.A. §§ 7-9-3, 7-9-13.
Original Rule entitled "Administrative Fines and Penalties" adopted. F. Dec. 3, 2013; eff. Dec. 23, 2013.Amended: F. June 15, 2015; eff. July 5, 2015.Amended: F. July 12, 2024; eff. Aug. 1, 2024.