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SECOND REGULAR SESSION
HOUSE BILL NO. 2990
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE BUTZ.
6532H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal sections 409.4-410 and 409.6-601, RSMo, and to enact in lieu thereof two new
sections relating to the Missouri securities act.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 409.4-410 and 409.6-601, RSMo, are repealed and two new
2 sections enacted in lieu thereof, to be known as sections 409.4-410 and 409.6-601, to read as
3 follows:
409.4-410. (a) A person shall pay a fee of two hundred dollars when initially filing
2 an application for registration as a broker -dealer and a fee of one hundred dollars when filing
3 a renewal of registration as a broker -dealer . If the filing results in a denial or withdrawal, the
4 commissioner shall retain the entire fee.
5 (b) The fee for an individual is [ fifty ] forty-five dollars when filing an application for
6 registration as an agent, a fee of [ fifty ] forty-five dollars when filing a renewal of registration
7 as an agent, and a fee of [ fifty ] forty-five dollars when filing for a change of registration as an
8 agent. If the filing results in a denial or withdrawal, the commissioner shall retain the entire
9 fee.
10 (c) A person shall pay a fee of two hundred dollars when filing an application for
11 registration as an investment adviser and a fee of one hundred dollars when filing a renewal of
12 registration as an investment adviser . If the filing results in a denial or withdrawal, the
13 commissioner shall retain the entire fee.
14 (d) The fee for an individual is [ fifty ] forty-five dollars when filing an application for
15 registration as an investment adviser representative, a fee of [ fifty ] forty-five dollars when
16 filing a renewal of registration as an investment adviser representative, and a fee of [ fifty ]
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 forty-five dollars when filing a change of registration as an investment adviser representative.
18 If the filing results in a denial or withdrawal, the commissioner shall retain the entire fee.
19 (e) A federal covered investment adviser required to file a notice under section 409.4-
20 405 shall pay an initial fee of two hundred dollars and an annual notice fee of one hundred
21 dollars.
22 (f) A person required to pay a filing or notice fee under this section may transmit the
23 fee through or to a designee as a rule or order provides under this act.
24 (g) An investment adviser representative who is registered as an agent under section
25 409.4-402 and who represents a person that is both registered as a broker -dealer under section
26 409.4-401 and registered as an investment adviser under section 409.4-403 or required as a
27 federal covered investment adviser to make a notice filing under section 409.4-405 is not
28 required to pay an initial or annual registration fee for registration as an investment adviser
29 representative.
30 (h) The commissioner may , by rule, adjust the fees in this section to generate the
31 moneys necessary to cover the expenses or costs associated with administering this act.
32 A fee incr ease shall not be made mor e than one time in any four -year time period and in
33 no case shall the total of all fee increa ses exceed the amount of twenty-five dollars in an
34 eight-year time period. In determining whether a fee increa se is necessary , the
35 commissioner shall consider the following factors:
36 a. The cost of administering and enfor cing the act, including personnel,
37 equipment, and operational expenses;
38 b. Inflation and changes in the cost of living, as measur ed by the Consumer Price
39 Index or other appr opriate indices;
40 c. The adequacy of curr ent fee levels to cover regu latory and oversight
41 functions;
42 d. The gr owth or decline in the number of r egistrations;
43 e. Any legislative, legal, or technological changes or emerging risks that incr ease
44 r egulatory res ponsibilities or service levels;
45 f. The need to maintain appr opriate staffing levels and technical capacity;
46 g. Revenue generated fr om other sources ; and
47 h. Public interes t considerations including, but not limited to, the potential
48 impact of a fee incre ase on individuals subject to the fees in this section.
49 (i) The commissioner shall conduct a compr ehensive financial revi ew of the
50 division's revenu e and expenditures every four years, beginning in fiscal year 2030. The
51 r eview shall include an analysis of all sources of funding and expenditures over the
52 pr eceding four fiscal years, a summary of tr ends in revenu es and expenditures of the
53 pr eceding four fiscal years, and an identification of any budget surplus or deficit for
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54 each year under r eview . The findings of the review shall be published in a r eport and
55 posted to the division's website within ninety days of completion. If the commissioner , in
56 conducting the r eview , determines a budget surplus exists that is not reas onably
57 necessary to meet the anticipated costs of operating the division, the commissioner shall,
58 by order , decr ease the fees in an amount that ensur es that fee r evenue mor e closely
59 aligns with the operational needs of the division. In no event shall fees be decr eased by
60 an amount that would res ult in the fee being less than the amount established by the
61 general assembly under subsections (a) to (f) of this section.
409.6-601. (a) This act shall be administered by the commissioner of securities who
2 shall be appointed by and act under the direction of the secretary of state, and shall receive
3 compensation as provided by law .
4 (b) The attorney general shall appear on behalf of and represent the commissioner in
5 all proceedings before the administrative hearing commission, and in the circuit court of any
6 county of the state or any city not within a county , or any court of another state in all civil
7 enforcement actions brought under this act. The attorney general may appoint attorneys
8 employed by the secretary of state as special assistant attorneys general to appear on behalf of
9 and represent the commissioner .
10 (c) It is unlawful for the secretary of state, commissioner or an of ficer , employee, or
11 designee of the commissioner to use for personal benefit or the benefit of others records or
12 other information obtained by or filed with the commissioner that are not public under section
13 409.6-607(b). This act does not authorize the secretary of state, commissioner or an of ficer ,
14 employee, or designee of the commissioner to disclose the record or information, except in
15 accordance with section 409.6-602, 409.6-607(c), or 409.6-608.
16 (d) This act does not create or diminish a privilege or exemption that exists at
17 common law , by statute or rule, or otherwise.
18 (e) The commissioner may develop and implement investor education initiatives to
19 inform the public about investing in securities, with particular emphasis on the prevention and
20 detection of securities fraud. In developing and implementing these initiatives, the
21 commissioner may collaborate with public and nonprofit or ganizations with an interest in
22 investor education. The commissioner may accept a grant or donation from a person that is
23 not af filiated with the securities industry or from a nonprofit or ganization, regardless of
24 whether the or ganization is af filiated with the securities industry , to develop and implement
25 investor education initiatives. This subsection does not authorize the commissioner to require
26 participation or monetary contributions of a registrant in an investor education program.
27 (f) The "Investor Education and Protection Fund" is created to provide funds for the
28 purposes identified in subsection (e). Notwithstanding the provisions of section 33.080, any
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29 funds remaining in the secretary of state's investor education and protection fund at the end of
30 any biennium shall not be transferred to the general revenue fund.
31 (g) The "Securities Division Fund" is cr eated to fund the operation of the
32 securities division of the secr etary of state's office. All moneys collected to reim burse
33 the securities division for the reas onable costs of audits or inspections made under
34 section 409.4-41 1(d) and all moneys collected that are attributable to a fee incr ease
35 implemented by rule under subsection (h) of section 409.4-410 shall be deposited in the
36 state trea sury to the credi t of the securities division fund and shall be appr opriated by
37 the general assembly only for use by the securities division of the secr etary of state's
38 office. The fund shall be used for reas onable costs of operating the division. The
39 commissioner , in addition to using the fund for expenses r elated to operating the
40 division, may use the fund for the purposes identified in subsection (h) of section 409.4-
41 410. Notwithstanding the pr ovisions of section 33.080, any funds rem aining in the
42 securities division fund shall not be transferr ed to the general r evenue ref und.
43 (h) A "Restitution Recovery Fund" is creat ed to offer r estitution assistance to
44 aggrieved investors who were awarded res titution in a final order issued under this act
45 but who did not receive payment in full of the amount awarded. The commissioner may
46 adopt rules to administer the r estitution r ecovery fund. Restitution assistance may be
47 awarded in an amount that is the lesser of twenty-five thousand dollars or twenty-five
48 per cent of unpaid res titution awarded in the final order . If payment of r estitution
49 assistance would res ult in a res titution recovery fund balance below fifty thousand
50 dollars, the commissioner may suspend r estitution assistance until such time as the
51 commissioner determines a sufficient balance has been res tore d to the fund. If the
52 balance of the res titution re covery fund exceeds two hundred and fifty thousand dollars
53 at the end of the calendar year , the amount in excess of two hundred and fifty thousand
54 dollars shall be transferr ed to the investor education and pr otection fund.
✔
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