17-12a601. Administration; investor education fund.
17-12a601
17-12a601. Administration; investor education
fund.
(a) Administration. (1) This act shall be
administered by the securities commissioner of Kansas.
(2) All fees herein provided for shall be collected by the
administrator. All salaries and expenses necessarily incurred in the
administration of this act shall be paid from the securities act fee
fund.
(3) The administrator shall remit all moneys received from all
fees, charges, deposits or penalties which have been collected under
this act or other laws of this state regulating the issuance, sale
or disposal of securities or regulating dealers in this state or
under the uniform land sales practices act, to the state treasurer
at least monthly. Upon receipt of any such remittance, the state
treasurer shall deposit the entire amount thereof in the state
treasury. In accordance with subsection (a) of K.S.A. 75-3170 [75-3170a],
and
amendments thereto, 20% of each such deposit shall be credited to
the state general fund and, except as provided in subsection (d),
the balance shall be credited to the securities act fee fund.
(4) On the last day of each fiscal year, the director of accounts and reports
shall transfer from the securities act fee fund
to the state general fund any remaining unencumbered amount in the
securities act fee fund exceeding $50,000 so that the beginning
unencumbered balance in the securities act fee fund on the first day
of each fiscal year is $50,000. All expenditures from the securities
act fee fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued
pursuant to vouchers approved by the administrator or by a person
or persons designated by the administrator.
(5) All amounts transferred from the securities act fee fund
to the state general fund under paragraph (4) are to reimburse the
state general fund for accounting, auditing, budgeting, legal,
payroll, personnel and purchasing services and any other
governmental services which are performed on behalf of the state
agency involved by other state agencies which receive appropriations
from the state general fund to provide such services. Such
reimbursements are in addition to those authorized by K.S.A. 75-3170a and
amendments thereto.
(b) Prohibited conduct. (1) It is unlawful for the
administrator or an officer, employee, or designee of the
administrator to use for personal benefit or the benefit of others
records or other information obtained by or filed with the
administrator that are not public under
K.S.A. 17-12a607(b), and
amendments thereto. This act does not authorize the administrator
or an officer, employee, or designee of the administrator to disclose the
record or information, except in accordance with
K.S.A. 17-12a602, 17-12a607(c), or 17-12a608, and amendments
thereto.
(2) Neither the administrator nor any employee of the
administrator shall be interested as an officer, director, or
stockholder in securing any authorization to sell securities under
the provisions of this act.
(c) No privilege or exemption created or diminished. This act
does not create or diminish a privilege or exemption that exists at
common law, by statute or rule, or otherwise.
(d) Investor education. (1) The administrator 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 administrator may collaborate with public and
nonprofit organizations with an interest in investor education. The
administrator 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
administrator to require participation or monetary contributions of
a registrant in an investor education program.
(2) There is hereby established in the state treasury the
investor education fund. Such fund shall be administered by the
administrator for the purposes described in subsection (d)(1) and for the
education of registrants, including official hospitality. Moneys
collected as civil penalties under this act shall be credited
to the investor education fund. The administrator may also receive
payments designated to be credited to the investor education fund
as a condition in settlements of cases arising out of investigations
or examinations. All expenditures from the investor education fund
shall be made in accordance with appropriation acts upon warrants
of the director of accounts and reports issued pursuant to vouchers
approved by the administrator or by a person or persons designated
by the administrator. Two years after the effective date of this
act, the administrator shall conduct a review and submit a report
to the governor and the legislature concerning the expenditures from
the investor education fund and the results achieved from the
investor education program.
History: L. 2004, ch. 154, § 40; July 1, 2005.