HOUSE BILL 283
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
David L. Doyle
AN ACT
RELATING TO SECURITIES; MAKING A PERMANENT APPROPRIATION FROM THE SECURITIES ENFORCEMENT AND INVESTOR EDUCATION FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 58-13C-601 NMSA 1978 (being Laws 2009, Chapter 82, Section 601) is amended to read:
"58-13C-601. ADMINISTRATION.--
A. The director shall administer the New Mexico Uniform Securities Act. The director shall be appointed by the superintendent of regulation and licensing subject to confirmation by the senate. The director shall be chosen solely on the basis of fitness to perform the duties of the office and shall have a minimum of five years relevant experience in the securities or finance field, relevant education and demonstrable knowledge of securities laws and regulations. The division is under the supervision and control of the superintendent of regulation and licensing, subject, however, to the exemptions set forth in Section 9-16-11 NMSA 1978. The director shall, with the approval of the superintendent of regulation and licensing, hire pursuant to the Personnel Act and assign duties to employees necessary to assist the director in the director's duties, and the director may, with the approval of the superintendent of regulation and licensing, appoint commissioned peace officers who shall have the powers of police officers for the purpose of investigating and enforcing the provisions of the New Mexico Uniform Securities Act. Such peace officers shall comply with the certification provisions of Section 29-7-6 NMSA 1978.
B. The director may by rule impose fees as necessary for examination, claims of exemption, requests for advisory opinions and other miscellaneous filings for which no fees are specified elsewhere in the New Mexico Uniform Securities Act and may also require payment of reasonable costs of investigation resulting from enforcement actions taken pursuant to Section [602, 603 or 604 of that act] 58-13C-602, 58-13C-603 or 58-13C-604 NMSA 1978.
C. It is unlawful for the director or an officer, employee or designee of the director to use for personal benefit or the benefit of others records or other information obtained by or filed with the director that are not public pursuant to Subsection B of Section [607 of the New Mexico Uniform Securities Act] 58-13C-607 NMSA 1978. The New Mexico Uniform Securities Act does not authorize the director or an officer, employee or designee of the director to disclose the record or information, except in accordance with Section [602 of that act] 58-13C-602 NMSA 1978, Subsection C of Section [607 of that act] 58-13C-607 NMSA 1978 or Section [608 of that act] 58-13C-608 NMSA 1978.
D. Except as stated in the New Mexico Uniform Securities Act, that act does not create or diminish a privilege or exemption that exists at common law, by statute or by rule or otherwise.
E. The director may develop and implement investor education initiatives to inform the public about investing in securities, with particular emphasis on the prevention and detection of securities fraud. In developing and implementing these initiatives, the director may collaborate with public and nonprofit organizations with an interest in investor education. The director may accept a grant or donation to the securities enforcement and investor education fund established in Subsection F of this section from a person that is not affiliated with the securities industry or from a nonprofit organization, regardless of whether the organization is affiliated with the securities industry, to develop and implement investor education initiatives. This subsection does not authorize the director to require participation or monetary contributions of a registrant in an investor education program.
F. The "securities enforcement and investor education fund" is created as a nonreverting fund in the state treasury to provide money for the purposes specified in Subsections E and G of this section. The division may establish and adopt rules as required to administer the fund. The securities enforcement and investor education fund shall be administered by the division. The fund shall consist of:
(1) five dollars ($5.00) of each fee collected from registrants pursuant to Subsections B and D of Section [410 of the New Mexico Uniform Securities Act] 58-13C-410 NMSA 1978;
(2) all or any portion of civil penalties, costs of investigation and other administrative assessments collected by the division through enforcement actions pursuant to the New Mexico Uniform Securities Act;
(3) appropriations, grants or donations to the fund; and
(4) income from investment of the fund.
G. Money in the securities enforcement and investor education fund [shall be] is appropriated [by the legislature] to the division and shall be used for consumer education and training in matters concerning securities laws and investment issues; education and training of investigative and prosecutorial staff of the division; and costs incurred for the investigation and prosecution of civil and criminal violations of the New Mexico Uniform Securities Act, including expert and other consultant fees, witness fees, deposition costs and travel and training expenses. Money shall be disbursed from the fund only on warrant of the secretary of finance and administration upon vouchers signed by the director or the director's authorized representative. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund."
- 5 -