Bill Text: NH HB1410 | 2012 | Regular Session | Amended
Bill Title: Relative to securities regulation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2012-05-16 - Senate Sen. DeBlois Moved Laid on Table, Motion Adopted, Voice Vote [HB1410 Detail]
Download: New_Hampshire-2012-HB1410-Amended.html
HB 1410 – AS AMENDED BY THE HOUSE
7Mar2012… 0442h
2012 SESSION
08/09
HOUSE BILL 1410
AN ACT relative to securities regulation.
SPONSORS: Rep. Gidge, Hills 24
COMMITTEE: Commerce and Consumer Affairs
This bill makes various changes to securities regulation laws, including increasing criminal penalties.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
7Mar2012… 0442h
12-2745
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to securities regulation.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Definitions. Amend RSA 421-B:2 by inserting after paragraph XXII the following new paragraph:
XXIII. “Willful” or “willfully,” especially in connection with RSA 421-B:24, but not limited thereto, means an intentional act or omission to perform an act in that the person was aware of what he or she was doing or failing to do. However, evil motive, scienter, intent to violate this title, or knowledge that this title was being violated is not required.
2 Sales and Purchases. The introductory paragraph of RSA 421-B:3, II is repealed and reenacted to read as follows:
II. For purposes of paragraph I(c), to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, shall include but not be limited to:
3 Criminal Penalty. Amend RSA 421-B:24 to read as follows:
421-B:24 Criminal Penalty.
I. Any person who willfully, as defined in RSA 421-B:2, XXIII, violates any provisions of RSA 421-B:3, 421-B:4, 421-B:5 or fails to comply with an order from the secretary of state to cease and desist or for an injunction issued pursuant to RSA 421-B:23, or who fails to comply with an order to pay a fine, penalty, rescission, restitution, or disgorgement greater than $10,000 pursuant to RSA 421-B:10, 421-B:23, or 421-B:26, or who violates RSA 421-B:19 knowing that the statement was false or misleading in any material respect, shall be guilty of a class B felony. Each of the acts specified shall constitute a separate offense and a prosecution or conviction for any one of such offenses shall not bar prosecution or conviction for any other offense.
II. Any person who willfully violates RSA 421-B:3-a, 421-B:6, 421-B:11 or 421-B:20 shall be guilty of a class A misdemeanor if a natural person, and guilty of a class B felony if any other person. Each of the acts specified shall constitute a separate offense and a prosecution or conviction for any one of such offenses shall not bar prosecution or conviction for any other offense. For any subsequent offense, any person shall be guilty of a class B felony.
III. [Repealed.]
IV. Nothing in this chapter limits the power of the state to punish any person for any conduct which constitutes a crime by statute.
V. The crimes established in paragraphs I and II of this section are public welfare offenses.
4 Hearing Procedures. Amend RSA 421-B:26-a, XXI-XXVIII to read as follows:
XXI. Within a reasonable time after the hearing, the presiding officer shall issue a written decision stating the action to be taken by the department and may set forth findings of fact, conclusions of law, and disposition. All decisions shall be reached upon the basis of a preponderance of the evidence. [The decision of the presiding officer shall be construed as the decision of the secretary of state.]
XXII. Any party to whom notice has been forwarded pursuant to and in accordance with these rules who fails to appear shall have a default judgment rendered against him.
XXIII.(a) Within 30 days after a final decision or disposition of a motion for reconsideration by the presiding officer:
(1) Any party, including the bureau staff, may file an appeal of the presiding officer’s decision to the secretary of state; or
(2) Upon his or her own motion, the secretary of state may elect to review a presiding officer’s decision.
(b) In either case, the procedure for such proceeding shall be the same as in paragraph XXVI.
(c) The secretary of state may elect to conduct the proceeding de novo, on the record, with or without allowing the parties to supplement the record. In the latter case, the procedure shall be the same as that provided for in paragraph XVII.
(d) At the conclusion of the proceedings, by written decision, the secretary of state may accept or reject the presiding officer’s decision, in whole or in part, substitute his or her own findings of fact and conclusions of law, or return the case to the original presiding officer, or to a substitute presiding officer, for action consistent with the secretary’s instruction.
XXIV. The presiding officer may take judicial notice.
[XXIV.] XXV. Where the interests of justice will be better served without prejudice to the substantial rights of any party, a presiding officer may sever one case from another or may consolidate 2 or more cases, preserving to all parties the right of appeal from the single or several decisions rendered.
[XXV.] XXVI. Once a hearing notice has been issued commencing an adjudicatory proceeding, no party shall communicate with the presiding officer or the secretary of state concerning the merits of the case except upon notice to all parties nor shall any party cause another person to make such communications.
[XXVI.] XXVII. Within 30 days after [a] the presiding officer’s final decision, any party including the bureau’s staff, may but is not required to file a motion for reconsideration which shall serve as a petition for rehearing under RSA 541. No distinctions shall be made between the terms “reconsideration” and “rehearing.” A motion for reconsideration shall:
[(1)] (a) Identify each error of law, error of reasoning, or erroneous conclusion contained in the final order which the moving party wishes the [secretary of state] presiding officer to reconsider.
[(2)] (b) Concisely state the correct factual finding, correct reasoning, and correct conclusion being advocated.
[(3)] (c) Include any memorandum of law the petitioner wishes to submit.
[XXVII.] XXVIII. Within 30 days after a final decision, the presiding officer may reconsider, revise or reverse any final action on the presiding officer’s own motion. If reconsideration is based upon the existing record, prior notice shall not be given to the parties. If the presiding officer believes further information or argument should be considered, the parties shall be provided with an appropriate notice and opportunity to be heard before any revision is made in the previous action.
[XXVIII. The filing of a motion for reconsideration shall not operate as a stay of any order or decision, but a motion for stay may be combined with a motion for reconsideration.]
XXIX. During the process outlined in this section, any preliminary order, such as a summary cease and desist order, shall remain in full force and effect. Further, during the process of reconsideration or appeal, any order or decision shall not be stayed. However, the presiding officer or the secretary before whom the case is heard may consider a motion for stay.
5 Effective Date. This act shall take effect January 1, 2013.
