17-12a602.   Investigations and subpoenas.(a) Authority to investigate. The administratormay:

      (1)   Conduct public or private investigations within or outsideof this state which the administrator considers necessary orappropriate to determine whether a person has violated, isviolating, or is about to violate this act or a rule adopted ororder issued under this act, or to aid in the enforcement of thisact or in the adoption of rules and forms under this act;

      (2)   require or permit a person to testify, file a statement,or produce a record, under oath or otherwise as the administratordetermines, as to all the facts and circumstances concerning amatter to be investigated or about which an action or proceeding is to beinstituted;

      (3)   publish a record concerning an action, proceeding, or aninvestigation under, or a violation of, this act or a rule adoptedor order issued under this act if the administrator determines itis necessary or appropriate in the public interest and for theprotection of investors; and

      (4)   appoint special investigators to aid in investigationsconducted pursuant to this act. Such special investigators shallhave authority to make arrests, serve subpoenas and all otherprocess, conduct searches and seizures, store evidence, and carryfirearms, concealed or otherwise while investigating violations ofthis act and to generally enforce all the criminal laws of the stateas violations of those laws are encountered by such specialinvestigators. The director of police training at the lawenforcement training center is authorized to offer and carry out aspecial course of instruction for special investigators performinglaw enforcement duties under authority of this subsection. Suchspecial investigators shall not carry firearms without having firstsuccessfully completed such special law enforcement training course.

      (b)   Administrator powers to investigate. For the purpose ofan investigation under this act, the administrator or its designatedofficer may administer oaths and affirmations, subpoena witnesses,seek compulsion of attendance, take evidence, require the filing ofstatements, and require the production of any records that theadministrator considers relevant or material to the investigation.

      (c)   Procedure and remedies for noncompliance. If a persondoes not appear or refuses to testify, file a statement, producerecords, or otherwise does not obey a subpoena as required by theadministrator under this act, the administrator may apply to anycourt of competent jurisdiction or a court of another state toenforce compliance. The court may:

      (1)   Hold the person in contempt;

      (2)   order the person to appear before the administrator;

      (3)   order the person to testify about the matter underinvestigation or in question;

      (4)   order the production of records;

      (5)   grant injunctive relief, including restricting orprohibiting the offer or sale of securities or the providing ofinvestment advice;

      (6)   impose a civil penalty of not greater than $25,000 for eachviolation; and

      (7)   grant any other necessary or appropriate relief.

      (d)   Application for relief. This section does not preclude aperson from applying to any court of competent jurisdiction or acourt of another state for relief from a request to appear, testify,file a statement, produce records, or obey a subpoena.

      (e)   Use immunity procedure. An individual is not excused fromattending, testifying, filing a statement, producing a record orother evidence, or obeying a subpoena of the administrator underthis act or in an action or proceeding instituted by the administrator underthis act on the ground that the requiredtestimony, statement, record, or other evidence, directly orindirectly, may tend to incriminate the individual or subject theindividual to a criminal fine, penalty, or forfeiture. If theindividual refuses to testify, file a statement, or produce a recordor other evidence on the basis of the individual's privilege againstself-incrimination, the administrator may compel the testimony, thefiling of the statement, the production of the record, or the givingof other evidence. The testimony, record, or other evidencecompelled under such an order may not be used, directly orindirectly, against the individual in a criminal case, except in aprosecution for perjury or contempt or otherwise failing to complywith the order.

      (f)   Assistance to securities regulator of another jurisdiction.At the request of the securities regulator of another state or aforeign jurisdiction, the administrator may provide assistance ifthe requesting regulator states that it is conducting aninvestigation to determine whether a person has violated, isviolating, or is about to violate a law or rule of the other stateor foreign jurisdiction relating to securities matters that therequesting regulator administers or enforces. The administrator mayprovide the assistance by using the authority to investigate and thepowers conferred by this section as the administrator determines isnecessary or appropriate. The assistance may be provided withoutregard to whether the conduct described in the request would also constitute aviolation of this act or other law of this state ifoccurring in this state. In deciding whether to provide theassistance, the administrator may consider whether the requestingregulator is permitted and has agreed to provide assistancereciprocally within its state or foreign jurisdiction to theadministrator on securities matters when requested; whethercompliance with the request would violate or prejudice the publicpolicy of this state; and the availability of resources andemployees of the administrator to carry out the request forassistance.

      History:   L. 2004, ch. 154, § 41; July 1, 2005.