Enrolled Bill Summary

            House Bill 2255 amends The Securities Act to continue the State Securities Board until September 1, 2013, and to include or update sunset across-the-board provisions. The bill also increases the membership of the board from three to five members and requires that their terms be staggered, with as near as possible to one-third of the terms expiring January 20 of each odd-numbered year; requires the securities commissioner to develop and implement investor education initiatives to inform the public about the basics of investing in securities; prohibits a person from rendering services as an investment adviser or an investment adviser representative in this state unless the person registers with the board or is specifically exempt under the act or board rule; and includes registered investment advisers and representatives in provisions relating to the application and examination for registration, the posting of registration certificates, fees, and administrative sanctions and enforcement actions.

            The bill authorizes the securities commissioner to access criminal history record information maintained by the Department of Public Safety relating to certificate applicants, certificate holders, applicants for employment, and employees. The bill also authorizes the commissioner to inspect registered dealers or investment advisers to ensure compliance with applicable law and rules and to issue emergency cease and desist orders to or assess an administrative fine against a person, including an investment adviser or investment adviser representative, engaging in or about to engage in fraud. Finally, the bill provides that a corporation is criminally responsible for certain offenses if their commission is authorized, requested, or condoned by a majority of the corporation's governing board or by a high managerial agent acting on its behalf and that investment advisers and investment adviser representatives are civilly liable to purchasers for damages under certain circumstances.