*SB0011.1* Januar 10, 2006 SENATE BILL N. 11 DIGEST OF SB 11 (Udated Januar 5, 2006 10:15 am - DI ta) itatins Affected: I 23-2. Snsis: Varius securities matters. Makes varius amendments t the law cncerning securities regulatin. Prvides that transactins exemt frm certain securit registratin requirements include the ffer r sale f securities invlving certain mergers r share exchanges that ccur within r utside the United States. (urrent law exemts the ffer r sale f securities invlving certain mergers r share exchanges that ccur within the United States.) hanges the methd f selectin f hme and branch ffices f registered brker-dealers fr cmletin f cmliance rerts. Prvides that: (1) the chief deut cmmissiner and each designated attrne r investigatr are lice fficers f the state and members f the enfrcement deartment f the securities divisin; (2) a ersn wh is subject t an rder f rescissin, restitutin, disgrgement, r a civil enalt that has nt been satisfied in full is nt eligible fr the issuance r renewal f an license frm an agenc, bard, cmmissiner, fficer, deartment, r bureau f state gvernment; and (3) certain vilatins ma be brught in the cunt where the vilatin allegedl ccurred r Marin unt. hanges the: (1) time a franchisr must renew a registratin frm 30 das befre exiratin f the registratin t nt later than the date the registratin exires; and (2) time an emler wh has an emlee cnducting riginatin activities must register frm 15 das t five das after the emlee first cnducts riginatin activities. Prvides that: (1) the securities cmmissiner ma rvide certain interretive inins r issue determinatins under the law cncerning lan brkers; and (2) certain individuals under the law cncerning lan brkers ma request an aeal frm a denial f an alicatin r a final rder b the securities cmmissiner. Requires that a ersn wh des nt cml with an rder f the curt r judge under the law cncerning lan brkers be unished fr cntemt f curt. Effective: Jul 1, 2006. Drzda Januar 9, 2006, read first time and referred t mmittee n Rules and Legislative Prcedure. Januar 9, 2006, amended; reassigned t mmittee n Insurance and Financial Institutins.
Secnd Regular Sessin 114th General Assembl (2006) Januar 10, 2006 PRINTING ODE. Amendments: Whenever an existing statute (r a sectin f the Indiana nstitutin) is being amended, the text f the existing rvisin will aear in this stle te, additins will aear in this stle te, and deletins will aear in this stle te. Additins: Whenever a new statutr rvisin is being enacted (r a new cnstitutinal rvisin adted), the text f the new rvisin will aear in this stle te. Als, the wrd NEW will aear in that stle te in the intrductr clause f each SETION that adds a new rvisin t the Indiana de r the Indiana nstitutin. nflict recnciliatin: Text in a statute in this stle te r this stle te recnciles cnflicts between statutes enacted b the 2005 Regular Sessin f the General Assembl. SENATE BILL N. 11 A BILL FOR AN AT t amend the Indiana de cncerning business and ther assciatins. Be it enacted b the General Assembl f the State f Indiana: 1 SETION 1. I 23-2-1-2 IS AMENDED TO READ AS FOLLOWS 2 [EFFETIVE JULY 1, 2006]: Sec. 2. (a) The fllwing securities are 3 exemted frm the registratin requirements f sectin 3 f this 4 chater: 5 (1) A securit (including a revenue bligatin) issued r 6 guaranteed b the United States, a state, a litical subdivisin f 7 a state, r an agenc r crrate r ther instrumentalit f ne 8 (1) r mre f the freging r a certificate f desit fr an f 9 the freging. 10 (2) A securit issued r guaranteed b anada, a anadian 11 rvince, a litical subdivisin f a anadian rvince, an 12 agenc, r crrate r ther instrumentalit f ne (1) r mre 13 f the freging, r an ther freign gvernment with which the 14 United States currentl maintains dilmatic relatins, if the 15 securit is recgnized as a valid bligatin b the issuer r 16 guarantr. 17 (3) A securit issued b and reresenting an interest in r a debt
2 1 f, r guaranteed b a bank rganized under the laws f the 2 United States, a bank, savings institutin, r trust cman 3 rganized and suervised under the laws f a state, a federal 4 savings assciatin, a savings assciatin rganized under the 5 laws f a state and authrized t d business in Indiana, a federal 6 credit unin r a credit unin, industrial lan assciatin, r 7 similar assciatin rganized and suervised under the laws f 8 this state, r a crratin r rganizatin whse issuance f 9 securities is required b an ther law t be assed un and 10 authrized b the deartment f financial institutins r b a 11 federal agenc r authrit. 12 (4) A securit issued r guaranteed b a railrad r ther cmmn 13 r cntract carrier, a ublic utilit, r a cmmn r cntract 14 carrier r ublic utilit hlding cman. Hwever, an issuer r 15 guarantr must be subject t regulatin r suervisin as t the 16 issuance f its wn securities b a ublic cmmissin, bard, r 17 fficer f the gvernment f the United States, f a state, territr, 18 r insular ssessin f the United States, f a municialit 19 lcated in a state, territr, r insular ssessin, f the District 20 f lumbia, r f the Dminin f anada r a rvince f 21 anada. 22 (5) A securit listed r arved fr listing un ntice f 23 issuance n the New Yrk Stck Exchange, the American Stck 24 Exchange, the hicag Stck Exchange, r n an ther exchange 25 arved and designated b the cmmissiner, an ther securit 26 f the same issuer that is f senir rank r substantiall equal 27 rank, a securit called fr b subscritin rights r warrants s 28 listed r arved, r a warrant r right t urchase r subscribe 29 t an f the freging. 30 (6) A rmissr nte, draft, bill f exchange, r banker's 31 accetance that is evidence f: 32 (A) an bligatin; 33 (B) a guarantee f an bligatin; 34 () a renewal f an bligatin; r 35 (D) a guarantee f a renewal f an bligatin; 36 t a cash within nine (9) mnths after the date f issuance, 37 excluding grace das, that is issued in denminatins f at least 38 fift thusand dllars ($50,000) and receives a rating in ne (1) 39 f the three (3) highest rating categries frm a natinall 40 recgnized statistical rating rganizatin. 41 (7) A securit issued in cnnectin with an emlee stck 42 urchase, savings, ensin, rfit-sharing, r similar benefit lan.
3 1 (8) A securit issued b an assciatin incrrated under 2 I 15-7-1. 3 (9) A securit that is an industrial develment bnd (as defined 4 in Sectin 103(b)(2) f the Internal Revenue de f 1954) the 5 interest f which is excludable frm grss incme under Sectin 6 103(a)(1) f the Internal Revenue de f 1954 if, b reasn f 7 the alicatin f aragrah (4) r (6) f Sectin 103(b) f the 8 Internal Revenue de f 1954 (determined as if aragrahs 9 (4)(A), (5), and (7) were nt included in Sectin 103(b)), 10 aragrah (1) f Sectin 103(b) des nt al t the securit. 11 (10) A securit issued b a nnrfit crratin that meets the 12 requirements f Sectin 103(e) f the Internal Revenue de f 13 1954 and is designated b the gvernr as the secndar market 14 fr guaranteed student lans under I 20-12-21.2. 15 (11) A securit designated r arved fr designatin un 16 ntice f issuance n the Natinal Assciatin f Securities 17 Dealers Autmatic Qutatin Natinal Market Sstem r an 18 ther natinal market sstem arved and designated b the 19 cmmissiner, an ther securit f the same issuer that is f 20 senir rank r substantiall equal rank, a securit called fr b 21 subscritin rights r warrants s listed r arved, r a warrant 22 r right t urchase r subscribe t an f the freging. 23 (12) A securit that is a "qualified bnd" (as defined in Sectin 24 141(e) f the Internal Revenue de, as amended). 25 (b) The fllwing transactins are exemted frm the registratin 26 requirements f sectin 3 f this chater: 27 (1) An islated nnissuer ffer r sale, whether effected thrugh 28 a brker-dealer r nt. 29 (2) A nnissuer sale effected b r thrugh a registered 30 brker-dealer ursuant t an unslicited rder r ffer t bu. 31 (3) A nnissuer ffer r sale b a registered brker-dealer, acting 32 either as rincial r agent, f issued and utstanding securities 33 if the fllwing cnditins are satisfied: 34 (A) The securities are sld at rices reasnabl related t the 35 current market rice at the time f sale, and if the registered 36 brker-dealer is acting as agent, the cmmissin cllected b 37 the registered brker-dealer n accunt f the sale is nt in 38 excess f usual and custmar cmmissins cllected with 39 resect t securities and transactins having cmarable 40 characteristics. 41 (B) The securities d nt cnstitute an unsld alltment t r 42 subscritin b the brker-dealer as a articiant in the
4 1 distributin f the securities b the issuer r b r thrugh an 2 underwriter. 3 () Either: 4 (i) infrmatin cnsisting f the names f the issuer's 5 fficers and directrs, a balance sheet f the issuer as f a 6 date nt mre than eighteen (18) mnths rir t the date f 7 the sale, and a rfit and lss statement fr either the fiscal 8 ear receding that date r the mst recent ear f 9 eratins is ublished in a securities manual arved b 10 the cmmissiner; 11 (ii) the issuer is required t file rerts with the Securities 12 and Exchange mmissin ursuant t sectins 13 and 15 13 f the Securities Exchange Act f 1934 (15 U.S.. 78m and 14 78) and is nt delinquent in the filing f the rerts n the 15 date f the sale; r 16 (iii) infrmatin cnsisting f the names f the issuer's 17 fficers and directrs, a balance sheet f the issuer as f a 18 date nt mre than sixteen (16) mnths rir t the date f 19 the sale, and a rfit and lss statement fr either the fiscal 20 ear receding that date r the mst recent ear f 21 eratins is n file with the cmmissiner. The infrmatin 22 required b this item t be n file with the cmmissiner 23 must be n a frm and made in a manner as the 24 cmmissiner rescribes. The fee fr the initial filing f the 25 frm shall be twent-five dllars ($25). The fee fr the 26 annual renewal filing shall be fifteen dllars ($15). When a 27 filing is withdrawn r is nt cmleted b the issuer, the 28 cmmissiner must retain the filing fee. 29 (D) There has been cmliance with sectin 6(l) f this 30 chater. 31 (E) Unless the issuer is registered under the Investment 32 man Act f 1940, all the fllwing must be true at the 33 time f the transactin: 34 (i) The securit belngs t a class that has been in the hands 35 f the ublic fr at least ninet (90) das. 36 (ii) The issuer f the securit is a ging cncern, is actuall 37 engaged in business, and is nt in bankrutc r 38 receivershi. 39 (iii) Excet as ermitted b rder f the cmmissiner, the 40 issuer and an redecessrs have been in cntinuus 41 eratin fr at least five (5) ears. An issuer r redecessr 42 is in cntinuus eratin nl if the issuer r redecessr
5 1 has grss erating revenue in each f the five (5) ears 2 immediatel receding the issuer's r redecessr's claim f 3 exemtin and has had ttal grss erating revenue f at 4 least tw millin five hundred thusand dllars ($2,500,000) 5 fr thse five (5) ears r has had grss erating revenue f 6 at least five hundred thusand dllars ($500,000) in nt less 7 than three (3) f thse five (5) ears. 8 The cmmissiner ma revke the exemtin affrded b this 9 subdivisin with resect t an securities b issuing an rder: 10 (i) if the cmmissiner finds that the further sale f the 11 securities in this state wuld wrk r tend t wrk a fraud n 12 urchasers f the securities; 13 (ii) if the cmmissiner finds that the financial cnditin f 14 the issuer is such that it is in the ublic interest and is 15 necessar fr the rtectin f investrs t revke r restrict 16 the exemtin affrded b this subsectin; r 17 (iii) if the cmmissiner finds that, due t the limited 18 number f shares in the hands f the ublic r due t the 19 limited number f brker-dealers making a market in the 20 securities, there is nt a sufficient market fr the securities 21 s that there is nt a current market rice fr the securities. 22 (4) A transactin between the issuer r ther ersn n whse 23 behalf the ffering is made b an underwriter, r amng 24 underwriters. 25 (5) A transactin in a bnd r ther evidence f indebtedness 26 secured b a real r chattel mrtgage r deed f trust, r b 27 agreement fr the sale f real estate r chattels, if the entire 28 mrtgage, deed f trust, r agreement, tgether with all the bnds 29 r ther evidences f indebtedness, is ffered and sld as a unit. 30 (6) A transactin b an executr, administratr, ersnal 31 reresentative, sheriff, marshal, receiver, trustee in bankrutc, 32 guardian, cnservatr, r a ersn acting in a trust r fiduciar 33 caacit where the transactin is effected ursuant t the authrit 34 f r subject t arval b a curt f cmetent jurisdictin. 35 (7) A transactin executed b a bna fide ledgee withut an 36 urse f evading this chater. 37 (8) An ffer r sale t a bank, a savings institutin, a trust 38 cman, an insurance cman, an investment cman (as 39 defined in the Investment man Act f 1940 (15 U.S.. 80a-1 40 thrugh 80a-52)), a ensin r rfit-sharing trust, r ther 41 financial institutin r institutinal buer, r t a brker-dealer, 42 whether the urchaser is acting fr itself r in a fiduciar caacit.
6 1 (9) The ffer r sale f securities f an issuer: 2 (i) t a ersn wh is: 3 (A) a directr, an executive fficer, a general artner, an 4 administratr, r a ersn wh erfrms similar functins 5 fr r wh is similarl situated with resect t the issuer; 6 (B) a directr, an executive fficer, r a general artner f a 7 general artner f the issuer; r 8 () an ther natural ersn emled n a full-time basis 9 b the issuer as an attrne r accuntant if the ersn has 10 been acting in this caacit fr at least ne (1) ear 11 immediatel rir t the ffer r sale; 12 (ii) t an entit affiliated with the issuer; 13 (iii) if the issuer is a crratin, t a ersn wh is the wner 14 f shares f the crratin r f an affiliated crratin 15 reresenting and ssessing ten ercent (10%) r mre f the 16 ttal cmbined vting wer f all classes f stck (f the 17 crratin r affiliated crratin) issued and utstanding 18 and wh is entitled t vte; r 19 (iv) if the issuer is a limited liabilit cman, t a ersn wh 20 is the wner f an interest in the limited liabilit cman 21 reresenting and ssessing at least ten ercent (10%) f the 22 ttal cmbined vting wer f all classes f such interests (f 23 the limited liabilit cman r affiliated limited liabilit 24 cman) issued and utstanding. 25 (10) The ffer r sale f a securit b the issuer f the securit if 26 all f the fllwing cnditins are satisfied: 27 (A) The issuer reasnabl believes that either: 28 (i) there are n mre than thirt-five (35) urchasers f the 29 securities frm the issuer in an ffering ursuant t this 30 subsectin, including urchasers utside Indiana; r 31 (ii) there are n mre than twent (20) urchasers in 32 Indiana. 33 In either case, there shall be excluded in determining the 34 number f urchasers a urchaser whm the issuer reasnabl 35 believes t be an accredited investr r wh urchases the 36 securities after the are registered under this chater. 37 (B) The issuer des nt ffer r sell the securities b means f 38 a frm f general advertisement r general slicitatin. 39 () The issuer reasnabl believes that each urchaser f the 40 securities is acquiring the securities fr the urchaser's wn 41 investment and is aware f an restrictins imsed n 42 transferabilit and resale f the securities. The basis fr
7 1 reasnable belief ma include: 2 (i) btaining a written reresentatin signed b the 3 urchaser that the urchaser is acquiring the securities fr 4 the urchaser's wn investment and is aware f an 5 restrictins imsed n the transferabilit and resale f the 6 securities; and 7 (ii) lacement f a legend n the certificate r ther 8 dcument that evidences the securities stating that the 9 securities have nt been registered under sectin 3 f this 10 chater, and setting frth r referring t the restrictins n 11 transferabilit and sale f the securities. 12 (D) The issuer: 13 (i) files with the cmmissiner and rvides t each 14 urchaser in this state an ffering statement that sets frth 15 all material facts with resect t the securities; and 16 (ii) reasnabl believes immediatel befre making a sale 17 that each urchaser wh is nt an accredited investr either 18 alne r with a urchaser reresentative has knwledge and 19 exerience in financial and business matters t the extent 20 that the urchaser is caable f evaluating the merits and 21 risks f the rsective investment. 22 (E) If the aggregate ffering rice f the securities in an 23 ffering ursuant t this subdivisin (including securities sld 24 utside f Indiana) des nt exceed five hundred thusand 25 dllars ($500,000), the issuer is nt required t cml with 26 clause (D) if the issuer files with the cmmissiner and 27 rvides t each urchaser in Indiana the fllwing 28 infrmatin and materials: 29 (i) cies f all written materials, if an, cncerning the 30 securities that have been rvided b the issuer t an 31 urchaser; and 32 (ii) unless clearl resented in all written materials, a written 33 ntificatin setting frth the name, address, and frm f 34 rganizatin f the issuer and an affiliate, the nature f the 35 rincial businesses f the issuer and an affiliate, and the 36 infrmatin required in sectin 5(b)(1)(B), 5(b)(1)(), 37 5(b)(1)(D), 5(b)(1)(E), 5(b)(1)(H), and 5(b)(1)(I) f this 38 chater. 39 (F) The cmmissiner des nt disallw the exemtin 40 rvided b this subdivisin within ten (10) full business das 41 after receit f the filing required b clause (D) r (E). The 42 issuer ma make ffers (but nt sales) befre and during the
8 1 ten (10) da erid, if: 2 (i) each rsective urchaser is advised in writing that the 3 ffer is reliminar and subject t material change; and 4 (ii) n enfrceable ffer t urchase the securities ma be 5 made b a rsective urchaser, and n cnsideratin in 6 an frm ma be acceted r received (directl r indirectl) 7 frm a rsective urchaser, befre the exiratin f the 8 ten (10) da erid and the vacatin f an rder disallwing 9 the exemtin. 10 (G) The issuer need nt cml with clause (D), (E), r (F) if: 11 (i) each urchaser has access t all the material facts with 12 resect t the securities b reasn f the urchaser's active 13 invlvement in the rganizatin r management f the issuer 14 r the urchaser's famil relatinshi with a ersn activel 15 invlved in the rganizatin r management f the issuer; 16 (ii) there are nt mre than fifteen (15) urchasers in Indiana 17 and each Indiana urchaser is an accredited investr r is a 18 urchaser described in item (i); r 19 (iii) the aggregate ffering rice f the securities, including 20 securities sld utside Indiana, des nt exceed five hundred 21 thusand dllars ($500,000), the ttal number f urchasers, 22 including urchasers utside f Indiana, des nt exceed 23 twent-five (25) and each urchaser either receives all f the 24 material facts with resect t the securit r is an accredited 25 investr r a urchaser described in item (i). 26 (H) If the issuer makes r is required t make a filing with the 27 cmmissiner under clause (D) r (E), the issuer must als file 28 with the cmmissiner at the time f the filing the cnsent t 29 service f rcess required b sectin 16 f this chater. The 30 issuer shall als file with the cmmissiner, at the times and 31 in the frms as the cmmissiner ma rescribe, ntices f 32 sales made in reliance un this subdivisin. 33 (I) The cmmissiner ma b rule den exemtin rvided in 34 this subdivisin t a articular class f issuers, r ma make 35 the exemtin available t the issuers un cmliance with 36 additinal cnditins and requirements, if arriate in 37 furtherance f the intent f this chater. 38 (11) An ffer r sale f securities t existing securit hlders f 39 the issuer, including ersns wh at the time f the transactin are 40 hlders f cnvertible securities, nntransferable warrants, r 41 transferable warrants exercisable within nt mre than ninet (90) 42 das f their issuance if n cmmissin r ther remuneratin
9 1 (ther than a standb cmmissin) is aid r given fr sliciting 2 a securit hlder in this state. 3 (12) An ffer (but nt a sale) f a securit fr which registratin 4 statements r alicatins have been filed under this chater and 5 the Securities Act f 1933 (15 U.S.. 77a-77aa), if n st rder 6 r refusal rder is in effect and n ublic rceeding r 7 examinatin lking tward an rder is ending under either law. 8 (13) The desit f shares under a vting-trust agreement and the 9 issue f vting-trust certificates fr the desit. 10 (14) The ffer r sale f a cmmdit futures cntract. 11 (15) The ffer r sale f securities t r fr the benefit f securit 12 hlders incident t a vte b the securit hlders ursuant t the 13 articles f incrratin r alicable instrument, n a merger r 14 share exchange under I 23-1-40 r the laws f anther state, 15 statutril arved merger r share exchange, 16 reclassificatin f securities, exchange f securities under 17 I 28-1-7.5, r sale f assets f the issuer in cnsideratin f the 18 issuance f securities f the same r anther issuer. 19 (16) A limited ffering transactinal exemtin, which ma be 20 created b rule adted b the cmmissiner. The exemtin 21 must further the bjectives f cmatibilit with federal 22 exemtins and unifrmit amng the states. 23 (c) The cmmissiner ma cnsider and determine if a rsed 24 sale, transactin, issue, r securit is entitled t an exemtin accrded 25 b this sectin. The cmmissiner ma decline t exercise the 26 cmmissiner's authrit as t a rsed sale, transactin, issue, r 27 securit. An interested art desiring the cmmissiner t exercise the 28 cmmissiner's authrit must submit t the cmmissiner a verified 29 statement f all material facts relating t the rsed sale, transactin, 30 issue, r securit, which must be accmanied b a request fr a ruling 31 as t the articular exemtin claimed, tgether with a filing fee f ne 32 hundred dllars ($100). After ntice t the interested arties as the 33 cmmissiner determines is rer and after a hearing, if an, the 34 cmmissiner ma enter an rder finding the rsed sale, 35 transactin, issue, r securit entitled r nt entitled t the exemtin 36 claimed. An rder entered, unless an aeal is taken frm it in the 37 manner rescribed in sectin 20 f this chater, is binding un the 38 cmmissiner and un all interested arties, rvided that the 39 rsed sale, transactin, issue, r securit when cnsummated r 40 issued cnfrms in ever relevant and material articular with the facts 41 as set frth in the verified statement submitted. 42 (d) The cmmissiner ma b rder den r revke an exemtin
10 1 secified in subsectin (a)(6), (a)(7), r (b) with resect t a secific 2 securit r transactin, if the cmmissiner finds that the securities t 3 which the exemtin alies wuld nt qualif fr registratin under 4 sectins 4 and 5 f this chater. N rder ma be entered withut 5 arriate rir ntice t all interested arties, rtunit fr 6 hearing, and written findings f fact and cnclusins f law, excet that 7 the cmmissiner ma b rder summaril den r revke an f the 8 secific exemtins ending final determinatin f a rceeding under 9 this subsectin. Un the entr f a summar rder, the cmmissiner 10 shall rmtl ntif all interested arties that it has been entered, f 11 the reasns fr the rder, and that within fifteen (15) das f the receit 12 f a written request the matter will be set dwn fr hearing. If n 13 hearing is requested and nne is rdered b the cmmissiner, the 14 rder will remain in effect until it is mdified r vacated b the 15 cmmissiner. If a hearing is requested r rdered, the cmmissiner, 16 after ntice f and rtunit fr hearing t all interested ersns, 17 ma mdif r vacate the rder r extend it until final determinatin. 18 N rder under this subsectin ma erate retractivel. N ersn 19 ma be cnsidered t have vilated sectin 3 f this chater b reasn 20 f an ffer r sale effected after the entr f an rder under this 21 subsectin if the ersn sustains the burden f rf that the ersn did 22 nt knw, and in the exercise f reasnable care culd nt have knwn, 23 f the rder. 24 (e) If, with resect t an ffering f securities, an ntices r written 25 statements are required t be filed with the cmmissiner under 26 subsectin (b)(10), the first filing made with resect t the ffering 27 must be accmanied b a filing fee f ne hundred dllars ($100). 28 (f) A cnditin, stiulatin, r rvisin requiring a ersn 29 acquiring a securit t waive cmliance with this chater r a rule r 30 rder under this chater is vid. 31 SETION 2. I 23-2-1-10 IS AMENDED TO READ AS 32 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 10. (a) A registered 33 brker-dealer shall make and kee accunts, crresndence, 34 memranda, aers, bks, and ther recrds as the cmmissiner 35 requires b rule r therwise. The cmmissiner's requirements ma 36 nt exceed the limitatins rvided in Sectin 15 f the Securities and 37 Exchange Act f 1934 (15 U.S.. 78). 38 (b) An investment adviser shall make and kee accunts, 39 crresndence, memranda, aers, bks, and ther recrds as the 40 cmmissiner requires b rule r therwise. The cmmissiner's 41 requirements ma nt exceed the limitatins rvided in Sectin 222 42 f the Investment Advisers Act f 1940 (15 U.S.. 80b-18a). The
11 1 cmmissiner ma rescribe b rule r therwise the erid that an 2 investment adviser must retain recrds. 3 (c) All the recrds f a registered brker-dealer r an investment 4 adviser are subject at an time t reasnable eridic, secial, r ther 5 examinatins b reresentatives f the cmmissiner, within r withut 6 Indiana, as the cmmissiner deems necessar r arriate in the 7 ublic interest r fr the rtectin f investrs. N charges r ther 8 examinatin fees ma be assessed against a registered brker-dealer r 9 an investment adviser as a result f an examinatin under this 10 subsectin unless the examinatin results in an investigatin r 11 examinatin made under sectin 16(d) f this chater. T avid 12 dulicatin f examinatins f recrds, the cmmissiner ma 13 cerate with the securities administratrs f ther states, the 14 Securities and Exchange mmissin, and an natinal securities 15 exchange r natinal securities assciatin registered under the 16 Securities and Exchange Act f 1934 (15 U.S.. 77b et seq.). 17 (d) Ever registered brker-dealer and investment adviser shall file 18 financial rerts and ther rerts as the cmmissiner b rule r rder 19 rescribes. The cmmissiner's rerting requirements fr registered 20 brker-dealers ma nt exceed the limitatins rvided in Sectin 15 21 f the Securities and Exchange Act f 1934 (15 U.S.. 78). The 22 cmmissiner's rerting requirements fr investment advisers ma nt 23 exceed the limitatins rvided in Sectin 222 f the Investment 24 Advisers Act f 1940 (15 U.S.. 80b-18a). 25 (e) If the infrmatin cntained in a dcument filed with the 26 cmmissiner is r becmes inaccurate r incmlete in an material 27 resect, the registrant shall rmtl file a crrecting amendment. 28 (f) The cmmissiner ma require investment advisers t furnish r 29 disseminate certain infrmatin necessar r arriate fr the ublic 30 interest r t rtect investrs r clients. The cmmissiner ma 31 determine that the infrmatin furnished t clients r rsective 32 clients f an investment adviser under the Investment Advisrs Act f 33 1940 (15 U.S.. 80a-1 et seq.) and the rules adted under the 34 Investment Advisers Act f 1940 ma be used t satisf this 35 requirement. 36 (g) The cmmissiner ma annuall select as man as twent-five 37 ercent (25%) f all Indiana hme and branch ffices f registered 38 brker-dealers fr cmletin f cmliance rerts. The ffices shall 39 be selected at randm. Each brker-dealer ffice that is selected shall 40 file its cmliance rert accrding t rules adted b the 41 cmmissiner under I 4-22-2 nt mre than ninet (90) das after 42 being ntified f selectin under this subsectin. N charges r ther
12 1 examinatin fees ma be assessed against a registered brker-dealer as 2 a result f the examinatin f a cmliance rert filed under this 3 subsectin unless the examinatin results in an investigatin r 4 examinatin made under sectin 16(d) f this chater. 5 SETION 3. I 23-2-1-15 IS AMENDED TO READ AS 6 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 15. (a) This chater 7 shall be administered b a divisin f the ffice f the secretar f 8 state. The secretar f state shall aint a securities cmmissiner 9 wh shall be resnsible fr the directin and suervisin f the 10 divisin and the administratin f this chater under the directin and 11 cntrl f the secretar f state. The salar f the securities 12 cmmissiner shall be aid ut f the funds arriated fr the 13 administratin f this chater. The cmmissiner shall serve at the will 14 f the secretar f state. 15 (b) The secretar f state: 16 (1) shall eml a chief deut, a senir investigatr, a senir 17 accuntant, and ther deuties, investigatrs, accuntants, clerks, 18 stengrahers, and ther emlees necessar fr the 19 administratin f this chater; and 20 (2) shall fix their cmensatin with the arval f the budget 21 agenc. 22 The chief deut, ther deuties, the senir investigatr, and the senir 23 accuntant, nce emled under this chater, ma be dismissed nl 24 fr cause b the secretar f state un ten (10) das ntice in writing 25 stating the reasns fr dismissal. Within fifteen (15) das after 26 dismissal, the chief deut, ther deuties, the senir investigatr, and 27 the senir accuntant ma aeal t the state ersnnel bard. The 28 state ersnnel bard shall hld a hearing, and if it finds that the 29 aealing art was dismissed fr a litical, scial, religius, r racial 30 reasn, the aealing art shall be reinstated t the aealing art's 31 sitin withut lss f a. In all ther cases, if the decisin is 32 favrable t the aealing art, the secretar f state shall fllw the 33 findings and recmmendatins f the bard, which ma include 34 reinstatement and ament f salar r wages lst. The hearing and an 35 subsequent rceedings r aeals shall be gverned b the rvisins 36 f I 4-15-2 and I 4-21.5. 37 (c) Fees and funds f whatever character accruing frm the 38 administratin f this chater shall be accunted fr b the secretar f 39 state and shall be desited with the treasurer f state t be desited 40 b the treasurer f state in the general fund f the state. Exenses 41 incurred in the administratin f this chater shall be aid frm the 42 general fund un arriatin being made fr the exenses in the
13 1 manner rvided b law fr the making f thse arriatins. 2 Hwever, csts f investigatins recvered under sectins 16(d) and 3 17.1(c) f this chater shall be desited with the treasurer f state t 4 be desited b the treasurer f state in a searate accunt t be knwn 5 as the securities divisin enfrcement accunt. The funds in the 6 accunt shall be available, with the arval f the budget agenc, t 7 augment and sulement the funds arriated fr the administratin 8 f this chater. The funds in the accunt d nt revert t the general 9 fund at the end f an fiscal ear. 10 (d) In cnnectin with the administratin and enfrcement f the 11 rvisins f this chater, the attrne general shall render all 12 necessar assistance t the securities cmmissiner un the 13 cmmissiner's request, and t that end, the attrne general shall 14 eml legal and ther rfessinal services as are necessar t 15 adequatel and full erfrm the service under the directin f the 16 securities cmmissiner as the demands f the securities divisin shall 17 require. Exenses incurred b the attrne general fr the urses 18 stated in this subsectin shall be chargeable against and aid ut f 19 funds arriated t the attrne general fr the administratin f the 20 attrne general's ffice. 21 (e) Neither the secretar f state, the securities cmmissiner, nr 22 an emlee f the securities divisin shall be liable in their individual 23 caacit, excet t the state, fr an act dne r mitted in cnnectin 24 with the erfrmance f their resective duties under this chater. 25 (f) The cmmissiner, subject t the arval f the secretar f 26 state, ma adt rules, rders, and frms necessar t carr ut this 27 chater, including rules and frms cncerning registratin statements, 28 alicatins, rerts, and the definitins f an terms if the definitins 29 are cnsistent with this chater. The cmmissiner ma b rule r rder 30 allw fr exemtins frm registratin requirements under sectins 3 31 and 8 f this chater if the exemtins are cnsistent with the ublic 32 interest and this chater. 33 (g) The rvisins f this chater delegating and granting wer t 34 the secretar f state, the securities divisin, and the securities 35 cmmissiner shall be liberall cnstrued t the end that: 36 (1) the ractice r cmmissin f fraud ma be rhibited and 37 revented; 38 (2) disclsure f sufficient and reliable infrmatin in rder t 39 affrd reasnable rtunit fr the exercise f indeendent 40 judgment f the ersns invlved ma be assured; and 41 (3) the qualificatins ma be rescribed t assure availabilit f 42 reliable brker-dealers, investment advisers, and agents engaged
14 1 in and in cnnectin with the issuance, barter, sale, urchase, 2 transfer, r dissitin f securities in this state. 3 It is the intent and urse f this chater t delegate and grant t and 4 vest in the secretar f state, the securities divisin, and the securities 5 cmmissiner full and cmlete wer t carr int effect and 6 accmlish the urse f this chater and t charge them with full and 7 cmlete resnsibilit fr its effective administratin. 8 (h) It is the dut f a rsecuting attrne, as well as f the attrne 9 general, t assist the securities cmmissiner un the cmmissiner's 10 request in the rsecutin t final judgment f a vilatin f the enal 11 rvisins f this chater and in a civil rceeding r actin arising 12 under this chater. If the cmmissiner determines that an actin based 13 n the securities divisin's investigatins is meritrius: 14 (1) the cmmissiner r a designee emwered b the 15 cmmissiner shall certif the facts drawn frm the investigatin 16 t the rsecuting attrne f the judicial circuit in which the 17 crime ma have been cmmitted; 18 (2) the cmmissiner and the securities divisin shall assist the 19 rsecuting attrne in rsecuting an actin under this sectin, 20 which ma include a securities divisin attrne serving as a 21 secial deut rsecutr ainted b the rsecuting attrne; 22 (3) a rsecuting attrne t whm facts cncerning fraud are 23 certified under subdivisin (1) ma refer the matter t the attrne 24 general; and 25 (4) if a matter has been referred t the attrne general under 26 subdivisin (3), the attrne general ma: 27 (A) file an infrmatin in a curt with jurisdictin ver the 28 matter in the cunt in which the ffense is alleged t have 29 been cmmitted; and 30 (B) rsecute the alleged ffense. 31 (i) The securities cmmissiner shall take, rescribe, and file the 32 ath f ffice rescribed b law. The securities cmmissiner, senir 33 investigatr, the chief deut cmmissiner, and each deut 34 attrne r investigatr designated b the cmmissiner are lice 35 fficers f the state and shall: 36 (1) have all the wers and duties f lice fficers in making 37 arrests fr vilatins f this chater, r in serving an rcess, 38 ntice, r rder cnnected with the enfrcement f this chater b 39 whatever fficer r authrit r curt issued; The securities 40 cmmissiner, the deut cmmissiners fr enfrcement, and 41 the investigatrs and 42 (2) cmrise the enfrcement deartment f the divisin;
15 1 and are cnsidered a criminal justice agenc fr urses f I 5-2-4 2 and I 10-13-3. 3 (j) The securities cmmissiner and each emlee f the securities 4 divisin shall be reimbursed fr necessar htel and travel exenses 5 when required t travel n fficial dut. Htel and travel 6 reimbursements shall be aid in accrdance with the travel regulatins 7 rescribed b the budget agenc. 8 (k) It is unlawful fr the secretar f state, the securities 9 cmmissiner, r the securities divisin's emlees t use fr ersnal 10 benefit infrmatin that is filed with r btained b the securities 11 divisin and that is nt made ublic. N rvisin f this chater 12 authrizes the secretar f state, the securities cmmissiner, r the 13 emlees f the securities divisin t disclse infrmatin excet 14 amng themselves, r when necessar r arriate, in a rceeding 15 r investigatin under this chater. N rvisin f this chater either 16 creates r dergates frm a rivilege that exists at cmmn law r 17 therwise when dcumentar r ther evidence is sught under a 18 subena directed t the secretar f state, the securities cmmissiner, 19 r the securities divisin r its emlees. 20 (l) The cmmissiner ma hnr requests frm interested ersns 21 fr interretative inins and frm interested ersns fr 22 determinatins that the cmmissiner will nt institute enfrcement 23 rceedings against secified ersns fr secified activities. A 24 determinatin nt t institute enfrcement rceedings must be 25 cnsistent with this chater. A ersn ma nt request an interretive 26 inin cncerning an activit that: 27 (1) ccurred befre; r 28 (2) is ccurring n; 29 the date that the inin is requested. The cmmissiner shall charge 30 a fee f ne hundred dllars ($100) fr an interretative inin r 31 determinatin. 32 SETION 4. I 23-2-1-17.1 IS AMENDED TO READ AS 33 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 17.1. (a) Whenever it 34 aears t the cmmissiner that a ersn has engaged in r is abut 35 t engage in an act r ractice cnstituting a vilatin f this chater 36 r a rule r rder under this chater, the cmmissiner ma investigate 37 and ma issue, with r withut a rir hearing, rders and ntices as 38 the cmmissiner determines t be in the ublic interest, including 39 cease and desist rders, rders t shw cause, and ntices. After ntice 40 and hearing, the cmmissiner ma enter an rder f rescissin, 41 restitutin, r disgrgement, including interest at the rate f eight 42 ercent (8%) er ear, directed t a ersn wh has vilated this
16 1 chater r a rule r rder under this chater. In additin t all ther 2 remedies, the cmmissiner ma bring an actin in the name and n 3 behalf f the state against the ersn and an ther ersn articiating 4 in r abut t articiate in a vilatin f this chater, t enjin the 5 ersn frm cntinuing r ding an act furthering a vilatin f this 6 chater and ma btain the aintment f a receiver r cnservatr. 7 Un a rer shwing b the cmmissiner, the curt shall enter an 8 rder f the cmmissiner directing rescissin, restitutin, r 9 disgrgement t a ersn wh has vilated this chater r a rule r 10 rder under this chater. In a curt rceeding, the cmmissiner ma 11 al fr and n due shwing be entitled t have issued the curt's 12 subena requiring the aearance f a defendant and the defendant's 13 emlees r agents and the rductin f dcuments, bks, and 14 recrds as ma aear necessar fr the hearing f the etitin, t 15 testif and give evidence cncerning the acts r cnduct r things 16 cmlained f in the actin. In the actin, the circuit r suerir curts 17 shall have jurisdictin f the subject matter. The curt ma nt require 18 the cmmissiner t st a bnd. 19 (b) Un the issuance f an rder r ntice b the cmmissiner 20 under subsectin (a), the cmmissiner shall rmtl ntif the 21 resndent that it has been issued and the reasns it has been issued 22 and that un the receit f a written request the matter will be set 23 dwn fr a hearing t cmmence within frt-five (45) business das 24 after receit f the request unless the resndent cnsents t a later 25 date. If n hearing is requested and nne is rdered b the 26 cmmissiner, the rder will remain in effect until it is mdified r 27 vacated b the cmmissiner. If a hearing is requested r rdered, the 28 cmmissiner, after ntice f an rtunit fr hearing ma mdif 29 r vacate the rder r extend it until final determinatin. 30 (c) In a rceeding in a circuit r suerir curt under this sectin, 31 the cmmissiner shall be entitled t recver all csts and exenses f 32 investigatin t which the cmmissiner wuld be entitled in an 33 administrative rceeding under sectin 16(d) f this chater, and the 34 curt shall include the csts in its final judgment. 35 (d) The cmmissiner shall ntif the insurance cmmissiner when 36 an administrative actin r civil rceeding is filed under this sectin. 37 (e) A ersn wh has: 38 (1) an rder f rescissin, restitutin, r disgrgement entered 39 against the ersn; r 40 (2) a civil enalt imsed un the ersn; 41 under this chater that has nt been satisfied in full is nt eligible 42 fr issuance r renewal f an license frm an agenc, bard,
17 1 cmmissiner, fficer, deartment, r bureau f state gvernment. 2 SETION 5. I 23-2-1-18.1 IS AMENDED TO READ AS 3 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 18.1. (a) A ersn wh 4 knwingl vilates this chater cmmits a lass feln. 5 (b) An actin fr a vilatin f sectin 3 r 8(a) f this chater 6 ma be brught in: 7 (1) the cunt where the vilatin allegedl ccurred; r 8 (2) Marin unt. 9 SETION 6. I 23-2-2.5-18 IS AMENDED TO READ AS 10 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 18. A registratin b 11 ntificatin ma be renewed b submitting t the cmmissiner a 12 registratin renewal frm n nt later than thirt (30) das rir t the 13 exiratin f the registratin unless that thirt (30) da erid is 14 waived b the cmmissiner. the date the registratin is due t 15 exire. If n st rder r ther rder under sectin 14 f this chater 16 is in effect, registratin f the ffer is renewed at the time the 17 registratin wuld have exired. A renewal is effective fr a erid f 18 ne (1) ear unless the cmmissiner secified a shrter erid. 19 SETION 7. I 23-2-5-10 IS AMENDED TO READ AS 20 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 10. (a) Whenever it 21 aears t the cmmissiner that a ersn has engaged in r is abut 22 t engage in an act r a ractice cnstituting a vilatin f this chater 23 r a rule r an rder under this chater, the cmmissiner ma 24 investigate and ma issue, with a rir hearing if there exists n 25 substantial threat f immediate irrearable harm r withut a rir 26 hearing, if there exists a substantial threat f immediate irrearable 27 harm, rders and ntices as the cmmissiner determines t be in the 28 ublic interest, including cease and desist rders, rders t shw cause, 29 and ntices. After ntice and hearing, the cmmissiner ma enter an 30 rder f rescissin, restitutin, r disgrgement, including interest at 31 the rate f eight ercent (8%) er ear, directed t a ersn wh has 32 vilated this chater r a rule r rder under this chater. 33 (b) Un the issuance f an rder r ntice withut a rir hearing 34 b the cmmissiner under subsectin (a), the cmmissiner shall 35 rmtl ntif the resndent: 36 (1) that the rder r ntice has been issued; 37 (2) f the reasns the rder r ntice has been issued; and 38 (3) that un the receit f a written request the matter will be set 39 dwn fr a hearing t cmmence within fifteen (15) business das 40 after receit f the request unless the resndent cnsents t a 41 later date. 42 If a hearing is nt requested and nt rdered b the cmmissiner, an
18 1 rder remains in effect until it is mdified r vacated b the 2 cmmissiner. If a hearing is requested r rdered, the cmmissiner, 3 after ntice f an rtunit fr hearing, ma mdif r vacate the 4 rder r extend it until final determinatin. 5 (c) The cmmissiner ma den, susend, r revke the license f 6 a licensee r the registratin f a registrant if the licensee r the 7 registrant: 8 (1) fails t maintain the bnd required under sectin 5 f this 9 chater; 10 (2) is inslvent; 11 (3) has vilated an rvisin f this chater; 12 (4) has knwingl filed with the cmmissiner an dcument r 13 statement cntaining an false reresentatin f a material fact r 14 mitting t state a material fact r if a reresentatin becmes 15 false after the filing but during the term f a license r certificate 16 f registratin as rvided in subsectin (g); r 17 (5) has been cnvicted, within ten (10) ears befre the date f the 18 alicatin, renewal, r review, f an crime invlving fraud r 19 deceit. 20 (d) The cmmissiner ma nt enter a final rder dening, 21 susending, r revking the license f a licensee r the registratin f 22 a registrant withut rir ntice t all interested arties, rtunit fr 23 a hearing, and written findings f fact and cnclusins f law. 24 Hwever, the cmmissiner ma b summar rder den, susend, r 25 revke a license r certificate f registratin ending final 26 determinatin f an rceeding under this sectin. Un the entr f 27 a summar rder, the cmmissiner shall rmtl ntif all interested 28 arties that it has been entered, f the reasns fr the summar rder, 29 and that un receit b the cmmissiner f a written request frm a 30 art, the matter will be set fr hearing t cmmence within fifteen 31 (15) business das after receit f the request. If n hearing is 32 requested and nne is rdered b the cmmissiner, the rder remains 33 in effect until it is mdified r vacated b the cmmissiner. If a 34 hearing is requested r rdered, the cmmissiner, after ntice f the 35 hearing has been given t all interested ersns and the hearing has 36 been held, ma mdif r vacate the rder r extend it until final 37 determinatin. 38 (e) I 4-21.5 des nt al t a rceeding under this sectin. 39 (f) If: 40 (1) a licensee desires t have a reviusl unregistered emlee 41 begin engaging in riginatin activities; r 42 (2) an individual wh was reviusl registered under this chater
19 1 is emled b anther licensee wh desires t have the registrant 2 engage in riginatin activities; 3 the emler licensee shall, within fifteen (15) five (5) business das 4 after the emlee first cnducts riginatin activities, submit t the 5 cmmissiner, n a frm rescribed b the cmmissiner, ntice f the 6 registrant's emlment. If the emlee has nt reviusl been 7 registered, the licensee shall submit evidence that the emlee has 8 cmleted the educatin requirements f sectin 21 f this chater. 9 (g) If a material fact r statement included in an alicatin under 10 this chater changes after the alicatin has been submitted, the 11 alicant shall rvide written ntice t the cmmissiner f the 12 change. The cmmissiner ma revke r refuse t renew the license 13 r registratin f an ersn wh: 14 (1) is required t submit a written ntice under this subsectin 15 and fails t rvide the required ntice within tw (2) business 16 das after the ersn discvers r shuld have discvered the 17 change; r 18 (2) wuld nt qualif fr licensure r registratin under this 19 chater as a result f a change in material fact r statement. 20 SETION 8. I 23-2-5-11 IS AMENDED TO READ AS 21 FOLLOWS [EFFETIVE JULY 1, 2006]: Sec. 11. (a) The 22 cmmissiner ma d the fllwing: 23 (1) Adt rules under I 4-22-2 t imlement this chater. 24 (2) Make investigatins and examinatins: 25 (A) in cnnectin with an alicatin fr licensure r fr 26 registratin f a licensee r registrant r with an license r 27 certificate f registratin alread granted; r 28 (B) whenever it aears t the cmmissiner, un the basis 29 f a cmlaint r infrmatin, that reasnable grunds exist 30 fr the belief that an investigatin r examinatin is necessar 31 r advisable fr the mre cmlete rtectin f the interests 32 f the ublic. 33 (3) harge as csts f investigatin r examinatin all reasnable 34 exenses, including a er diem rrated un the salar f the 35 cmmissiner r emlee and actual traveling and htel 36 exenses. All reasnable exenses are t be aid b the art r 37 arties under investigatin r examinatin if the art has vilated 38 this chater. 39 (4) Issue ntices and rders, including cease and desist ntices 40 and rders, after making an investigatin r examinatin under 41 subdivisin (2). The cmmissiner ma als bring an actin n 42 behalf f the state t enjin a ersn frm vilating this chater.
20 1 The cmmissiner shall ntif the ersn that an rder r ntice 2 has been issued, the reasns fr it, and that a hearing will be set 3 within fifteen (15) das after the cmmissiner receives a written 4 request frm the ersn requesting a hearing. 5 (5) Sign all rders, fficial certificatins, dcuments, r aers 6 issued under this chater r delegate the authrit t sign an f 7 thse items t a deut. 8 (6) Hld and cnduct hearings. 9 (7) Hear evidence. 10 (8) nduct inquiries with r withut hearings. 11 (9) Receive rerts f investigatrs r ther fficers r emlees 12 f the state f Indiana r f an municial crratin r 13 gvernmental subdivisin within the state. 14 (10) Administer aths, r cause them t be administered. 15 (11) Subena witnesses, and cmel them t attend and testif. 16 (12) mel the rductin f bks, recrds, and ther 17 dcuments. 18 (13) Order desitins t be taken f an witness residing within 19 r withut the state. The desitins shall be taken in the manner 20 rescribed b law fr desitins in civil actins and made 21 returnable t the cmmissiner. 22 (14) Order that each witness aearing under the cmmissiner's 23 rder t testif befre the cmmissiner shall receive the fees and 24 mileage allwances rvided fr witnesses in civil cases. 25 (15) Prvide interretive inins r issue determinatins 26 that the cmmissiner will nt institute a rceeding r an 27 actin under this chater against a secified ersn fr 28 engaging in a secified act, ractice, r curse f business if 29 the determinatin is cnsistent with this chater. The 30 cmmissiner ma adt rules t establish fees fr individuals 31 requesting an interretive inin r a determinatin under 32 this subdivisin. A ersn ma nt request an interretive 33 inin r a determinatin cncerning an activit that: 34 (A) ccurred befre; r 35 (B) is ccurring n; 36 the date the inin r determinatin is requested. 37 (b) If a witness, in an hearing, inquir, r investigatin cnducted 38 under this chater, refuses t answer an questin r rduce an item, 39 the cmmissiner ma file a written etitin with the circuit r suerir 40 curt in the cunt where the hearing, investigatin, r inquir in 41 questin is being cnducted requesting a hearing n the refusal. The 42 curt shall hld a hearing t determine if the witness ma refuse t
21 1 answer the questin r rduce the item. If the curt determines that 2 the witness, based un the witness's rivilege against 3 self-incriminatin, ma rerl refuse t answer r rduce an item, 4 the cmmissiner ma make a written request that the curt grant use 5 immunit t the witness. Un written request f the cmmissiner, the 6 curt shall grant use immunit t a witness. The curt shall instruct the 7 witness, b written rder r in en curt, that: 8 (1) an evidence the witness gives, r evidence derived frm that 9 evidence, ma nt be used in an criminal rceedings against 10 that witness, unless the evidence is vlunteered b the witness r 11 is nt resnsive t a questin; and 12 (2) the witness must answer the questins asked and rduce the 13 items requested. 14 A grant f use immunit des nt rhibit evidence that the witness 15 gives in a hearing, investigatin, r inquir frm being used in a 16 rsecutin fr erjur under I 35-44-2-1. If a witness refuses t give 17 the evidence after he the witness has been granted use immunit, the 18 curt ma find him the witness in cntemt. 19 (c) In an rsecutin, actin, suit, r rceeding based un r 20 arising ut f this chater, the cmmissiner ma sign a certificate 21 shwing cmliance r nncmliance with this chater b an ersn. 22 This shall cnstitute rima facie evidence f cmliance r 23 nncmliance with this chater and shall be admissible in evidence 24 in an actin at law r in equit t enfrce this chater. 25 (d) If: 26 (1) a ersn disbes an lawful: 27 (A) subena issued under this chater; r 28 (B) rder r demand requiring the rductin f an 29 bks, accunts, aers, recrds, dcuments, r ther 30 evidence r infrmatin as rvided in this chater; r 31 (2) a witness refuses t: 32 (A) aear when subenaed; 33 (B) testif t an matter abut which the witness ma be 34 lawfull interrgated; r 35 () take r subscribe t an ath required b this chater; 36 the circuit r suerir curt f the cunt in which the hearing, 37 inquir, r investigatin in questin is held, if demand is made r 38 if, un written etitin, the rductin is rdered t be made, r 39 the cmmissiner r a hearing fficer ainted b the 40 cmmissiner, shall cmel cmliance with the lawful 41 requirements f the subena, rder, r demand, cmel the 42 rductin f the necessar r required bks, aers, recrds,
22 1 dcuments, and ther evidence and infrmatin, and cmel an 2 witness t attend in an Indiana cunt and t testif t an matter 3 abut which the witness ma lawfull be interrgated, and t take 4 r subscribe t an ath required. 5 (e) If a ersn fails, refuses, r neglects t cml with a curt 6 rder under this sectin, the ersn shall be unished fr cntemt 7 f curt. 8 SETION 9. I 23-2-5-22 IS ADDED TO THE INDIANA ODE 9 AS A NEW SETION TO READ AS FOLLOWS [EFFETIVE JULY 10 1, 2006]: Sec. 22. (a) An aeal ma be taken b: 11 (1) an lan brker r rincial un whse alicatin fr 12 registratin fr a lan brker license is granted r denied, 13 frm an final rder f the cmmissiner cncerning the 14 alicatin r registratin; 15 (2) an alicant fr registratin as a lan brker r 16 riginatr, frm an final rder f the cmmissiner affecting 17 the alicatin r registratin as a lan brker r riginatr; 18 (3) an ersn against whm a civil enalt is imsed under 19 sectin 14(a) f this chater, frm the final rder f the 20 cmmissiner imsing the civil enalt; r 21 (4) an ersn wh is named as a resndent, frm an final 22 rder issued b the cmmissiner under sectin 10 r 11 f 23 this chater; 24 t the Marin circuit curt r t the circuit r suerir curt f the 25 cunt where the ersn taking the aeal resides r maintains a 26 lace f business. 27 (b) Nt later than twent (20) das after the entr f the rder, 28 the cmmissiner shall be served with: 29 (1) a written ntice f the aeal stating the curt t which the 30 aeal will be taken and the grunds un which a reversal f 31 the final rder is sught; 32 (2) a demand in writing frm the aellant fr a certified 33 transcrit f the recrd and f all aers n file in the 34 cmmissiner's ffice affecting r relating t the rder; and 35 (3) a bnd in the enal sum f five hundred dllars ($500) t 36 the state f Indiana with sufficient suret t be arved b 37 the cmmissiner, cnditined un the faithful rsecutin 38 f the aeal t final judgment and the ament f all csts 39 that are adjudged against the aellant. 40 (c) Nt later than ten (10) das after the cmmissiner is served 41 with the items listed in subsectin (b), the cmmissiner shall 42 make, certif, and deliver t the aellant the transcrit, and the
23 1 aellant shall, nt later than five (5) das after the date the 2 aellant receives the transcrit, file the transcrit and a c f 3 the ntice f aeal with the clerk f the curt. The ntice f aeal 4 serves as the aellant's cmlaint. The cmmissiner ma aear 5 and file an mtin r leading and frm the issue. The cause shall 6 be entered n the trial calendar fr trial de nv and given 7 recedence ver all matters ending in the curt. 8 (d) The curt shall receive and cnsider an ertinent ral r 9 written evidence cncerning the rder f the cmmissiner frm 10 which the aeal is taken. If the rder f the cmmissiner is 11 reversed, the curt shall in its mandate secificall direct the 12 cmmissiner as t the cmmissiner's further actin in the 13 matter. The cmmissiner is nt barred frm revking r altering 14 the rder fr an rer cause that accrues r is discvered after 15 the rder is entered. If the rder is affirmed, the aellant is nt 16 barred after thirt (30) das frm the date the rder is affirmed 17 frm filing a new alicatin if the alicatin is nt therwise 18 barred r limited. During the endenc f the aeal, the rder 19 frm which the aeal is taken is nt susended but remains in 20 effect unless therwise rdered b the curt. An aeal ma be 21 taken frm the judgment f the curt n the same terms and 22 cnditins as an aeal is taken in civil actins.
24 SENATE MOTION Madam President: I mve that Senatr Gartn be remved as authr f Senate Bill 11 and that Senatr Drzda be substituted therefr. GARTON OMMITTEE REPORT Madam President: The Senate mmittee n Rules and Legislative Prcedure, t which was referred Senate Bill N. 11, has had the same under cnsideratin and begs leave t rert the same back t the Senate with the recmmendatin that said bill be AMENDED as fllws: Delete the title and insert the fllwing: A BILL FOR AN AT t amend the Indiana de cncerning business and ther assciatins. Delete everthing after the enacting clause and insert the fllwing: (SEE TEXT OF BILL) and when s amended that said bill be reassigned t the Senate mmittee n Insurance and Financial Institutins. (Reference is t SB 11 as intrduced.) GARTON, hairersn