COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 1406-04
Bill No.: Truly Agreed to and Finally Passed SCS for HCS for HB 380
Subject: Secretary of State: Securities
Type: Original
Date: June 3, 2003
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Office of Secretary of State- Securities Division assume no fiscal impact.
Officials of the Office of Attorney General assume no fiscal impact.
Officials of the Office of State Courts Administrator assume no fiscal impact to the Courts.
Officials of the Departments of Labor and Industrial Relations and Insurance assume no fiscal impact.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This bill substantially revises and modernizes the securities regulation laws, incorporating many provisions of the Uniform Securities Act. In its main provisions, the bill:
(1) Authorizes the Secretary of State to seek court orders requiring violators to disgorge illicit profits, pay restitution, and pay into the Investor Education and Protection Fund, which the bill establishes;
(2) Increases criminal fines to $1 million;
(3) Requires banks with on-premise brokerage firms to comply with federal rules;
(4) Modernizes, simplifies, and broadens exemptions from securities registration with the state;
(5) Promotes consistency with other states and the Securities and Exchange Commission in the definition of "security";
(6) Authorizes civil prosecution of individuals who materially aid in violations; and
(7) Adds civil penalties of $10,000 for one violation and up to $1 million for more than one violation.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of Secretary of State- Securities Division
Office of Attorney General
Office of State Courts Administrator
Department of Labor and Industrial Relations
Department of Insurance
Mickey Wilson, CPA
Director
June 3, 2003