Legislative Document No. 1704 H.P. 1219 House of Representatives, May 8, 2019
An Act To Establish the Securities Restitution Assistance Fund for Victims of Securities Violations
Submitted by the Department of Professional and Financial Regulation pursuant to Joint Rule 204. Reference to the Committee on Health Coverage, Insurance and Financial Services suggested and ordered printed.
ROBERT B. HUNT Clerk
Presented by Representative HARNETT of Gardiner. Cosponsored by Senator CARPENTER of Aroostook and Representatives: CARDONE of Bangor, DOORE of Augusta, EVANGELOS of Friendship, McCREA of Fort Fairfield, RECKITT of South Portland, WARREN of Hallowell.
Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 32 MRSA c. 135, sub-c. 5-A is enacted to read:
3 SUBCHAPTER 5-A
4 SECURITIES RESTITUTION ASSISTANCE FUND 5 §16521. Definitions
6 As used in this subchapter, unless the context otherwise indicates, the following 7 terms have the following meanings.
8 1. Claimant. "Claimant" means a victim that files an application for restitution 9 assistance under this subchapter. "Claimant" includes the named party in a restitution 10 award in a final order, the executor of a named party in a restitution award in a final order 11 and the heirs and assigns of a named party in a restitution award in a final order.
12 2. Eligible adult. "Eligible adult" means: 13 A. An individual 65 years of age or older; or 14 B. An individual protected under the Adult Protective Services Act. 15 3. Final order. "Final order" means a final order issued by the administrator under 16 this chapter or a final order issued by the court in a legal action initiated by the 17 administrator under this chapter.
18 4. Fund. "Fund" means the Securities Restitution Assistance Fund established under 19 section 16522.
20 5. Securities violation. "Securities violation" means a violation of this chapter and 21 any related rules.
22 6. Victim. "Victim" means a person that suffered monetary injury as a result of a 23 securities violation and was awarded restitution in a final order.
24 §16522. Securities Restitution Assistance Fund; established
25 1. Fund established. The Securities Restitution Assistance Fund is established 26 within the Department of Professional and Financial Regulation, Office of Securities to 27 provide funds for restitution assistance for victims that were awarded restitution in a final 28 order issued by the administrator under this chapter or were awarded restitution in a final 29 order in a legal action initiated by the administrator under this chapter and have not 30 received the full amount of restitution ordered before the application for restitution 31 assistance is due.
32 2. Funding. The fund consists of amounts received by the administrator from:
Page 1 - 129LR2365(01)-1 1 A. Civil fines ordered or agreed to by the administrator pursuant to section 16412, 2 subsection 3 or section 16604, subsection 4 unless those funds have been designated 3 by the administrator for other purposes; 4 B. Civil fines agreed to by the administrator pursuant to Title 10, section 8003, 5 subsection 5, paragraph B unless those funds have been designated by the 6 administrator for other purposes; 7 C. Civil fines ordered by a court pursuant to section 16603, subsection 2, paragraph 8 B, subparagraph (3) unless those funds have been designated by the court or the 9 administrator for other purposes; 10 D. Five dollars of each broker-dealer agent renewal fee paid if the operating fund 11 balance of the Office of Securities under section 16601, subsection 6 as of October 12 1st of the previous calendar year exceeds 135% of the office's current annual budget; 13 E. Five dollars of each investment adviser representative renewal fee paid if the 14 operating fund balance of the Office of Securities under section 16601, subsection 6 15 as of October 1st of the previous calendar year exceeds 135% of the office's current 16 annual budget; 17 F. All grants, donations and payments received or accepted by the administrator for 18 victim restitution assistance; and 19 G. Any other amounts designated by the administrator for victim restitution 20 assistance. 21 3. Nonlapsing operating fund. The amounts received for the fund may be used by 22 the administrator only to pay awards of restitution assistance under this subchapter and to 23 administer this subchapter and may not be placed in the General Fund. Any balance in the 24 fund does not lapse but must be carried forward to be used for the same purposes.
25 §16523. Claims
26 1. Eligible victims. The following victims are eligible for restitution assistance: 27 A. A natural person who is a resident of the State; and 28 B. A person, other than a natural person, that is domiciled in the State. 29 2. Application. A person that is eligible for restitution assistance under this 30 subchapter may submit an application in a manner and form prescribed by the 31 administrator. The administrator may provide forms for the submission of applications.
32 3. Deadline. The application for restitution assistance under this subchapter must be 33 received by the administrator not more than one year after the date of the final order 34 awarding restitution to the victim.
35 4. Extension. Notwithstanding subsection 3, the administrator may grant an 36 extension of time for submission of an application for restitution assistance for good 37 cause shown by the claimant.
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