17-12a605.   Rules, forms, orders, interpretiveopinions and hearings.(a) Issuance and adoption of forms, orders, andrules. The administrator may:

      (1)   Issue forms and orders and, after notice and comment, mayadopt and amend rules necessary or appropriate to carry out this actand may repeal rules, including rules and forms governingregistration statements, applications, notice filings, reports, andother records;

      (2)   by rule, define terms, whether or not used in this act, butthose definitions may not be inconsistent with this act; and

      (3)   by rule, classify securities, persons, and transactions andadopt different requirements for different classes.

      (b)   Findings and cooperation. Under this act, a rule or formmay not be adopted or amended, or an order issued or amended, unlessthe administrator finds that the rule, form, order, or amendment isnecessary or appropriate in the public interest or for theprotection of investors and is consistent with the purposes intendedby this act. In adopting, amending, and repealing rules and forms,K.S.A. 17-12a608, and amendments thereto, applies in order toachieveuniformity among the states and coordination with federal laws inthe form and content of registration statements, applications,reports, and other records, including the adoption of uniform rules,forms, and procedures.

      (c)   Financial statements. Subject to section 15(h) of thesecurities exchange act and section 222 of the investment advisersact of 1940, the administrator may require that a financialstatement filed under this act be prepared in accordance withgenerally accepted accounting principles in the United States andcomply with other requirements specified by rule adopted or orderissued under this act. A rule adopted or order issued under thisact may establish:

      (1)   Subject to section 15(h) of the securities exchange act andsection 222 of the investment advisers act of 1940, the form andcontent of financial statements required under this act;

      (2)   whether unconsolidated financial statements must be filed;and

      (3)   whether required financial statements must be audited byan independent certified public accountant.

      (d)   Interpretative opinions. The administrator may provideinterpretative opinions or issue determinations that theadministrator will not institute a proceeding or an action underthis act against a specified person for engaging in a specified act,practice, or course of business if the determination is consistentwith this act. A rule adopted or order issued under this act mayestablish a reasonable charge for interpretative opinions ordeterminations that the administrator will not institute an actionor a proceeding under this act.

      (e)   Effect of compliance. No provision of this act imposing anyliability applies to any act done or omitted in good faith inconformity with any rules and regulations, form, or order of thecommissioner, notwithstanding that the rules and regulations, formor order may later be amended, revoked or rescinded or be determinedby judicial or other authority to be invalid for any reason.

      (f)   Presumption for public hearings. A hearing in anadministrative proceeding under this act must be conducted in publicunless the administrator for good cause consistent with this actdetermines that the hearing will not be so conducted.

      History:   L. 2004, ch. 154, § 44; July 1, 2005.