17-12a601.   Administration; investor educationfund.(a) Administration. (1) This act shall beadministered by the securities commissioner of Kansas.

      (2)   All fees herein provided for shall be collected by theadministrator. All salaries and expenses necessarily incurred in theadministration of this act shall be paid from the securities act feefund.

      (3)   The administrator shall remit all moneys received from allfees, charges, deposits or penalties which have been collected underthis act or other laws of this state regulating the issuance, saleor disposal of securities or regulating dealers in this state orunder the uniform land sales practices act, to the state treasurerat least monthly. Upon receipt of any such remittance, the statetreasurer shall deposit the entire amount thereof in the statetreasury. In accordance with subsection (a) of K.S.A. 75-3170 [75-3170a],andamendments thereto, 20% of each such deposit shall be credited tothe 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 reportsshall transfer from the securities act fee fundto the state general fund any remaining unencumbered amount in thesecurities act fee fund exceeding $50,000 so that the beginningunencumbered balance in the securities act fee fund on the first dayof each fiscal year is $50,000. All expenditures from the securitiesact fee fund shall be made in accordance with appropriation actsupon warrants of the director of accounts and reports issuedpursuant to vouchers approved by the administrator or by a personor persons designated by the administrator.

      (5)   All amounts transferred from the securities act fee fundto the state general fund under paragraph (4) are to reimburse thestate general fund for accounting, auditing, budgeting, legal,payroll, personnel and purchasing services and any othergovernmental services which are performed on behalf of the stateagency involved by other state agencies which receive appropriationsfrom the state general fund to provide such services. Suchreimbursements are in addition to those authorized by K.S.A. 75-3170a andamendments thereto.

      (b)   Prohibited conduct. (1) It is unlawful for theadministrator or an officer, employee, or designee of theadministrator to use for personal benefit or the benefit of othersrecords or other information obtained by or filed with theadministrator that are not public underK.S.A. 17-12a607(b), andamendments thereto. This act does not authorize the administratoror an officer, employee, or designee of the administrator to disclose therecord or information, except in accordance withK.S.A. 17-12a602, 17-12a607(c), or 17-12a608, and amendmentsthereto.

      (2)   Neither the administrator nor any employee of theadministrator shall be interested as an officer, director, orstockholder in securing any authorization to sell securities underthe provisions of this act.

      (c)   No privilege or exemption created or diminished. This actdoes not create or diminish a privilege or exemption that exists atcommon law, by statute or rule, or otherwise.

      (d)   Investor education. (1) The administrator may develop andimplement investor education initiatives to inform the public aboutinvesting in securities, with particular emphasis on the preventionand detection of securities fraud. In developing and implementingthese initiatives, the administrator may collaborate with public andnonprofit organizations with an interest in investor education. Theadministrator may accept a grant or donation from a person that isnot affiliated with the securities industry or from a nonprofitorganization, regardless of whether the organization is affiliatedwith the securities industry, to develop and implement investoreducation initiatives. This subsection does not authorize theadministrator to require participation or monetary contributions ofa registrant in an investor education program.

      (2)   There is hereby established in the state treasury theinvestor education fund. Such fund shall be administered by theadministrator for the purposes described in subsection (d)(1) and for theeducation of registrants, including official hospitality. Moneyscollected as civil penalties under this act shall be creditedto the investor education fund. The administrator may also receivepayments designated to be credited to the investor education fundas a condition in settlements of cases arising out of investigationsor examinations. All expenditures from the investor education fundshall be made in accordance with appropriation acts upon warrantsof the director of accounts and reports issued pursuant to vouchersapproved by the administrator or by a person or persons designatedby the administrator. Two years after the effective date of thisact, the administrator shall conduct a review and submit a reportto the governor and the legislature concerning the expenditures fromthe investor education fund and the results achieved from theinvestor education program.

      History:   L. 2004, ch. 154, § 40; July 1, 2005.