HCS HB 380 -- SECURITIES REGULATION (Byrd)

This substitute substantially revises and modernizes the
securities regulation laws, incorporating many provisions of the
Uniform Securities Act.  In its main provisions, the substitute:

(1)  Authorizes the Secretary of State to seek court orders
requiring violators to disgorge illicit profits, pay restitution,
and pay into the Investor Education and Protection Fund, which
the substitute establishes;

(2)  Increases criminal fines to $1 million;

(3)  Requires banks with on-premise brokerage firms to comply
with federal rules;

(4)  Modernizes, simplifies, and broadens exemptions from
securities registration with the state;

(5)  Promotes consistency with other states and the Securities
and Exchange Commission in the definition of "security";

(6)  Authorizes civil prosecution of individuals who materially
aid in violations; and

(7)  Adds civil penalties of $10,000 for one violation and up to
$1 million for more than one violation.

FISCAL NOTE:  Total Estimated Net Effect to Secretary of State's
Investor Education and Protection Fund of $0 in FY 2004, FY 2005,
and FY 2006.  Oversight assumes cost would equal income.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am