(a)This article shall be administered by a
division of the office of the secretary of state. The secretary of state
shall appoint a securities commissioner who shall be responsible for
the direction and supervision of the division and the administration of
this article under the direction and control of the secretary of state. The
salary of the securities commissioner shall be paid out of the funds
appropriated for the administration of this article. The commissioner
shall serve at the will of the secretary of state.
(b)The secretary of state:
(1)shall employ a chief deputy, attorneys, a senior investigator,
a senior accountant, and other deputies, investigators,
accountants, clerks, stenographers, and other employees necessary
for the administration of this article; and
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(a) This article shall be administered by a
division of the office of the secretary of state. The secretary of state
shall appoint a securities commissioner who shall be responsible for
the direction and supervision of the division and the administration of
this article under the direction and control of the secretary of state. The
salary of the securities commissioner shall be paid out of the funds
appropriated for the administration of this article. The commissioner
shall serve at the will of the secretary of state.
(b) The secretary of state:
(1) shall employ a chief deputy, attorneys, a senior investigator,
a senior accountant, and other deputies, investigators,
accountants, clerks, stenographers, and other employees necessary
for the administration of this article; and
(2) shall fix their compensation with the approval of the budget
agency.
(c) It is unlawful for the commissioner or an officer, employee, or
designee of the commissioner to use for personal benefit or the benefit
of others records or other information obtained by or filed with the
commissioner that is not public under section 7(b) of this chapter. This
article does not authorize the commissioner or an officer, employee, or
designee of the commissioner to disclose the record or information,
except in accordance with section 2, 7(c), or 8 of this chapter.
(d) This article does not create or diminish a privilege or exemption
that exists at common law, by statute or rule, or otherwise.
(e) Subject to IC 4-2-6-15, the commissioner 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 commissioner may collaborate with public and nonprofit
organizations with an interest in investor education. The commissioner
may accept a grant or donation 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 commissioner to require participation or
monetary contributions of a registrant in an investor education
program.
(f) The securities division enforcement account is established.
Except as provided in subsection (o), fees and funds of whatever
character accruing from the administration of this article shall be
accounted for by the secretary of state and shall be deposited with the
treasurer of state to be deposited by the treasurer of the state in either
the state general fund or the securities division enforcement account.
Subject to IC 4-2-6-15, expenses incurred in the administration of this
article shall be paid from the state general fund upon appropriation
being made for the expenses in the manner provided by law for the
making of those appropriations. The following shall be deposited by the
treasurer of state in the securities division enforcement account:
(1) Grants and donations received under subsection (e).
(2) Costs of investigations recovered under section 4(e) of this
chapter.
(3) Fifty percent (50%) of the first four million dollars
($4,000,000):
(A) of a civil penalty recovered under section 3(b) or 4(d) of
this chapter;
(B) recovered in a settlement of an action initiated to enforce
this article; or
(C) awarded as a judgment in an action to enforce this article.
(g) The following shall be deposited by the treasurer of state in the
state general fund:
(1) Fifty percent (50%) of the first four million dollars
($4,000,000):
(A) of a civil penalty recovered under section 3(b) or 4(d) of
this chapter;
(B) recovered in a settlement of an action initiated to enforce
this article; or
(C) awarded as a judgment in an action to enforce this article.
(2) Any amount exceeding four million dollars ($4,000,000):
(A) of a civil penalty recovered under section 3(b) or 4(d) of
this chapter;
(B) recovered in a settlement of an action initiated to enforce
this article; or
(C) awarded as a judgment in an action to enforce this article.
(3) Subject to subsection (o), other fees and revenues that are not
designated for deposit in the securities division enforcement
account or the securities restitution fund.
(h) Notwithstanding IC 23-2-2.5-34, IC 23-2-2.5-43, IC 23-2.5-2, IC 23-19-4-12, IC 25-11-1-15, and this chapter, five percent (5%) of funds
received for deposit in the securities division enforcement account shall
instead be deposited in the securities restitution fund established by IC 23-20-1-25. Subject to appropriation by the general assembly and
subject to IC 4-2-6-15, the funds deposited in the enforcement account
shall be available, with the approval of the budget agency:
(1) to augment and supplement the funds appropriated for the
administration of this article; and
(2) for grants and awards to nonprofit entities for programs and
activities that will further investor education and financial literacy
in the state.
The funds in the enforcement account do not revert to the state general
fund at the end of any state fiscal year. The fund may be augmented
after budget committee review.
(i) In connection with the administration and enforcement of this
article, the attorney general shall render all necessary assistance to the
commissioner upon the commissioner's request, and to that end, the
attorney general shall employ legal and other professional services as
are necessary to adequately and fully perform the service under the
direction of the commissioner as the demands of the securities division
shall require. Expenses incurred by the attorney general for the
purposes stated in this subsection shall be chargeable against and paid
out of funds appropriated to the attorney general for the administration
of the attorney general's office. The attorney general may authorize the
commissioner and the commissioner's designee to represent the
commissioner and the securities division in any proceeding involving
enforcement or defense of this article.
(j) Neither the secretary of state, the commissioner, nor an employee
of the securities division shall be liable in their individual capacity,
except to the state, for an act done or omitted in connection with the
performance of their respective duties under this article.
(k) The commissioner shall take, prescribe, and file the oath of
office prescribed by law. The commissioner, chief deputy
commissioner, and each attorney or investigator designated by the
commissioner are police officers of the state and shall have all the
powers and duties of police officers in making arrests for violations of
this article, or in serving any process, notice, or order connected with
the enforcement of this article by whatever officer, authority, or court
issued and shall comprise the enforcement department of the division
and are considered a criminal justice agency for purposes of IC 5-2-4
and IC 10-13-3.
(l) The provisions of this article delegating and granting power to
the secretary of state, the securities division, and the commissioner
shall be liberally construed to the end that:
(1) the practice or commission of fraud may be prohibited and
prevented;
(2) disclosure of sufficient and reliable information in order to
afford reasonable opportunity for the exercise of independent
judgment of the persons involved may be assured; and
(3) the qualifications may be prescribed to assure availability of
reliable broker-dealers, investment advisers, and agents engaged
in and in connection with the issuance, barter, sale, purchase,
transfer, or disposition of securities in this state.
It is the intent and purpose of this article to delegate and grant to and
vest in the secretary of state, the securities division, and the
commissioner full and complete power to carry into effect and
accomplish the purpose of this article and to charge them with full and
complete responsibility for its effective administration.
(m) Copies of any statement and documents filed in the office of the
secretary of state and of any records of the secretary of state certified
by the commissioner shall be admissible in any prosecution, action,
suit, or proceeding based upon, arising out of, or under this article to
the same effect as the original of such statement, document, or record
would be if actually produced.
(n) IC 4-21.5 and any rules of practice adopted by the securities
division are applicable to administrative proceedings under this article.
(o) Notwithstanding any other law, two percent (2%) of funds
received for deposit in the state general fund as described in subsection
(g)(3) shall instead be deposited in the securities restitution fund
established by IC 23-20-1-25.