United States General Accounting Office General Government Division

Washington, D.C. 20548

Page 1 GAO/GGD-00-189R Financing State Securities Regulation

B-285158

August 15, 2000

The Honorable Vito Fossella

House of Representatives

Subject: Expenditures and Revenues of State Securities Regulatory Agencies

Dear Mr. Fossella:

This letter provides information you requested on expenditures and revenues of state

securities regulatory agencies for fiscal years 1998 and 1999. As agreed with your office, the

specific objectives of this letter were, to the extent possible, to (1) provide data on the

expenditures and revenues of state securities regulatory agencies and (2) quantify the

revenues of state securities agencies by types of activity.

To address our objectives, we surveyed all 50 state securities agencies, as well as those in the

District of Columbia and Puerto Rico, between April 5, 2000, and June 9, 2000. The data

collection instrument we used is included as enclosure I, and a list of the individuals we

contacted at the various agencies is provided in enclosure II. We received 46 usable

responses, which represents an overall response rate of 88 percent. In addition, as described

more specifically below and as shown in enclosures III through XII of this letter, the

respondents could not always provide a response to every question in the survey. As a result,

the information provided to us was not always entirely consistent or complete.1

 We

conducted our work in Washington, D.C., and San Francisco, CA, between February 2000 and

August 2000 in accordance with generally accepted government auditing standards.

 1

 Our survey asked state securities departments to provide totals for securities-related expenditures and revenues. Then, they

were asked to allocate revenues by source among several categories and subcategories. Not all departments were able to provide

all the information we requested. The more detailed the breakdown of information requested, the more likely that some

departments did not maintain information in that form. Thus, some states provided totals and such information as they had

available, but did not provide information in all categories and subcategories. Moreover, in the information provided by some

states, the sum of the subcategories did not equal the total for the category. For this letter, the information we report is that

provided by the responding states. In part because the state regulators varied in their ability to respond, and because some

responses were estimates, we did not verify the accuracy of the reported information.
Page 2 GAO/GGD-00-189R Financing State Securities Regulation

Results

Our securities markets operate under a dual system of state and federal regulation. In the

early 1930s, Congress created the Securities and Exchange Commission (SEC). Securities

regulation in some states predates the creation of SEC by more than 2 decades. Federal

securities statutes focus primarily on, among other things, the national markets. State

securities registration requirements, known as blue sky laws, generally are aimed at new and

unproven companies and speculative ventures, which often have local or regional impact.2

Generally, state securities agencies are funded by appropriations from state legislatures. They

also collect revenues from a variety of securities-related activities, including fees for

licensing/registration and securities offerings, as well as fines and fees for a variety of civil

and administrative violations. Most of the state securities departments that responded to our

survey said that revenues exceeded expenditures for securities activities for both 1998 and

1999. (See enclosures III and IV for individual state data.) Two states, California and

Colorado, told us that their state laws require a balancing of revenues and expenditures.

California reported that its securities-related expenditures exceeded revenues in both 1998

and 1999. In Colorado, revenues exceeded expenditures by only a small margin in each year.

However, as shown in figure 1, revenues, on average, were more than 6 times greater than

expenditures for both 1998 and 1999, for all states reporting.3

 2

 Shortly before World War I, state governments wanted to protect their citizens from fly-by-night promotions and fraudulent

investment schemes that followed on the heels of the industrial revolution. The resulting laws were designed to protect the

public from speculative schemes. These state laws have generally become known as “blue sky laws” as a result of an early

Supreme Court opinion describing the primary purpose of these statutes as preventing “speculative schemes which have no

more basis than so many feet of blue sky.” Hall v. Geiger-Jones Co. 242 U.S. 539, 550 (1917).

3

 In general, SEC is funded by a congressional appropriation, and the revenue it collects from the securities industry goes to the

general fund. SEC also collects more in revenue than it spends. Expenditures were $311.1 million in 1998 and $338.9 million in

1999. Revenue collected by SEC equaled $1,859 million in 1998 and $1,794 in 1999. Thus, the ratio of revenue to expenditures for

SEC was 5.98 in 1998 and 5.3 in 1999.
Page 3 GAO/GGD-00-189R Financing State Securities Regulation

a

In 1999, 41 states are included in the figure because five of the 46 respondents provided financial information insufficient for a

comparison of revenues and expenditures. Only 40 states provided complete information on total expenditures and revenues

for fiscal year 1998.

Source: GAO Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures.

Information obtained from several states, as well as from officials of the North American

Securities Administrators Association (NASAA),4

 indicated that, in many states, excess

revenues are deposited in the state’s general fund. State securities officials told us that the

general fund supports a wide range of activities, some of which are directly or indirectly

related to the functioning of securities markets. Such activities can include criminal

investigations and prosecutions of securities laws violations as well as various administrative

or operational functions, such as accounting and facility services operated jointly for the

benefit of the state securities regulatory agency and other state units. One state official told

 4

NASAA is an association representing state securities regulatory agencies, including the District of Columbia and Puerto Rico,

as well as their counterparts in Canada and Mexico.

Figure 1: States’ Securities Regulatory Agency Revenue and Expenditures for Fiscal Years 1998 and

1999a
Page 4 GAO/GGD-00-189R Financing State Securities Regulation

us that: “Healthy securities markets provide the infrastructure for capitalism . . . .” Excess

securities revenues in that state were used, in part, to support the state’s educational system

because: “The public education and higher education systems prepare our children for

modern life, and the importance of the financial education our children receive is rapidly

increasing.”

California and Colorado both operate under systems that require them to lower fee revenues

when they exceed expenditures. A California securities official reported that the agency was

operating under a 2-year policy of waiving certain categories of fees until the agency’s fund

reserve had been reduced to a level approximately equal to 90 days of operating expenses. A

Colorado securities official reported that state statutes required the agency to reduce its fees

if revenues exceeded expenditures in the preceding fiscal year.

We asked state securities departments to break down the total revenues received for

securities-related activities into four categories—fees from licensing and registration of

broker-dealers and investment advisors, fees related to securities offerings and notice filings,

revenues from civil or administrative violations, and all other revenues. Most of the states

that provided total revenue figures were able to show how revenues were divided into these

four categories. Figure 2 shows the percentage breakdown of total revenue in 1999 as

reported by those states that provided the information. Revenue from registration and

licensing constituted 42 percent of the total revenue collected overall by states securities

departments, and revenue from the registration of securities offerings and notice filings

equaled 57 percent. Revenue from violations and penalties was about 1 percent, and other

revenues were a fraction of 1 percent in both years. The reported figures for 1998 were very

similar to those shown for 1999. State-by-state values for these categories are shown in

enclosures V (1998) and VI (1999). We also asked securities department officials to provide

greater detail about fees in each of these categories to the extent that they were able. This

detail, for the states that responded, is in enclosures VII through XII.
Page 5 GAO/GGD-00-189R Financing State Securities Regulation

Source: GAO Survey of State Securities Regulatory Agencies Revenue Collections and Expenditures.

Agency Comments

We requested comments on a draft of this letter from the Executive Director, NASAA,

representing the state securities regulatory agencies. On August 8, 2000, he said that the draft

was fair and unbiased. NASAA staff provided some editorial changes that we included as

appropriate.

As arranged with your office, unless you publicly announce this letter’s contents earlier, we

plan no further distribution for 10 days from the date of the letter. At that time, we will send

copies of the report to The Honorable Tom Bliley, Chairman, and the Honorable John Dingell,

Ranking Minority Member, Committee on Commerce. We will also send copies to Arthur

Levitt, Chairman of the Securities and Exchange Commission. Please call me or

Figure 2: State Securities Regulatory Agency Revenue for Fiscal Year 1999 (by Category)
Page 6 GAO/GGD-00-189R Financing State Securities Regulation

Lawrence D. Cluff at (202) 512-8678 if you or your staff have any questions about the matters

discussed in this letter. Major contributors to this letter were Alexandra Martin-Arseneau,

May Lee, Bruce Engle, and Desiree Whipple.

Sincerely yours,

Richard J. Hillman

Associate Director, Financial Institutions and Markets
Enclosure I

Survey of State Securities Regulatory

Agencies’ Revenue Collections and

Expenditures

Page 7 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 8 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 9 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 10 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 11 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 12 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure I

Survey of State Securities Regulatory Agencies’ Revenue Collections and Expenditures

Page 13 GAO/GGD-00-189R Financing State Securities Regulation
Enclosure II

List of Contacts at State Securities Regulatory

Agencies

Page 14 GAO/GGD-00-189R Financing State Securities Regulation

State Contact person

Alabama Joseph P. Borg, Director

Alaska Vincent L. Usera, Senior Securities Examiner

Arizona Victor Rodarte, Assistant Director

Arkansas Mac Dodson, Commissioner

California William Kenefick, Acting Commissioner of Corporations

Colorado Fred Joseph, Securities Commissioner

Connecticut Percy Cave, Fiscal Manager

Delaware James B. Ropp, Securities Commissioner

District of Columbia Larry N. Coates, Acting Director – Securities Bureau

Floridaa Don Saxon, Director – Department of Banking and Finance

Georgiaa Mary Beth Strebel, Administrative Specialist

Hawaii Ryan S. Ushijima, Commissioner of Securities

Idaho Jean Knox, Supporting Services Bureau Chief

Illinois Tanya Solov, Director

Indiana Brad Skolnik, Securities Commissioner

Iowa Craig A. Goettsch, Superintendent of Securities

Kansas Steve Wassom, Director of Finance and Administration

Kentucky Colleen Keefe, Director – Division of Securities

Louisiana Harry C. Stansbury, Deputy Commissioner of Securities

Maine Christine A. Bruenn, Securities Administrator

Maryland a Melanie Senter Lubin, Securities Commissioner

Massachusetts Diane Young-Spitzer, Associate Director and General Counsel

Michigan Ron Jones, Chief Deputy Commissioner

Minnesota Lee Spelbrink, Fiscal Manager

Mississippi Nancy Thompson, Director of Regulation and Enforcement

Missouri Mary Hosmer, Assistant Commissioner

Montana Lynne Egan, Securities Examiner/Analyst II

Nebraska Jack E. Herstein, Assistant Director

Nevada Charles Moore, Securities Administrator

New Hampshirea Peter C. Hildreth, Director of Securities Regulation

New Jersey Franklin L. Widmann, Chief – Bureau of Securities

New Mexico Michael J. Vargon, Deputy Director

New York a Eric Dinallo, Assistant Attorney General in Charge

North Carolina David Massey, Deputy Securities Administrator

North Dakota a Syver Vinje, Commissioner

Ohio Thomas E. Geyer, Commissioner

Oklahoma Irving L. Faught, Administrator

Oregon Patricia A. Locnikar, Chief of Licensing & Registration

Pennsylvania Simon J. Dengel, Director – Management Services

Puerto Rico Felipe Cruz, Assistant Commissioner

Rhode Island Maria Piccirilli, Associate Director and Superintendent of Securities

South Carolina David Jonson, Deputy Securities Commissioner

South Dakota Gail Sheppick, Director

Tennessee Daphne D. Smith, Assistant Commissioner – Securities

Texas Tom Spradlin, Director – Information Resources and Planning

Utah S. Anthony Taggart, Director

Vermont Blythe McLaughlin, Deputy Commissioner

Virginia Thomas M. Gouldin, Deputy Director

Washington Deborah Bortner, Director of Securities
Enclosure II

List of Contacts at State Securities Regulatory Agencies

Page 15 GAO/GGD-00-189R Financing State Securities Regulation

State Contact person

West Virginia Chester Thompson, Deputy Commissioner of Securities

Wisconsin Patricia D. Struck, Administrator, Dept. of Financial Institutions, Division of Securities

Wyoming Thomas Cowan, Securities Division Director

a

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure III

Fiscal Year 1998 Securities-Related

Expenditures and Revenues of State

Securities Regulatory Agencies

Page 16 GAO/GGD-00-189R Financing State Securities Regulation

State

Reported

expenditures

(Q1.98)a

Reported

revenues

(Q2.98)a

Net revenues

(revenues minus

expenditures)

Expenditures as a

percentage of revenues

Alabama $1,747,055 $8,871,144 $7,124,089 20%

Alaska $539,400 $6,957,863 $6,418,463 8%

Arizona $3,806,600 $14,874,549 $11,067,949 26%

Arkansas $1,717,622 $10,477,974 $8,760,352 16%

California $12,926,000b $8,817,666b ($4,108,334) 147%

Colorado $2,145,749 $2,220,482 $74,733 97%

Connecticut c $9,589,450

Delaware $373,400 $8,095,057 $7,721,657 5%

District of Columbia $337,054 $2,459,890 $2,122,836 14%

Florida d d

Georgia d d

Hawaii c $4,524,116

Idaho $991,081e $3,118,000 $2,126,919 32%

Illinois $3,360,338 $17,569,541 $14,209,203 19%

Indiana $877,107 $5,238,955e $4,361,848 17%

Iowa $881,535e $7,739,105 $6,857,570 11%

Kansas $1,756,460 $7,080,110 $5,323,650 25%

Kentucky $800,000e $5,845,000e $5,045,000 14%

Louisiana c $9,546,097

Maine $803,464 $8,582,393 $7,778,929 9%

Maryland d d

Massachusetts c $23,166,483

Michigan $2,342,859 $13,461,344 $11,118,485 17%

Minnesota $609,402 $27,608,034 $26,998,632 2%

Mississippi c $5,997,418

Missouri $821,771 $8,961,533 $8,139,762 9%

Montana $512,634 $6,250,227 $5,737,593 8%

Nebraska $861,660 $12,136,574e $11,274,914 7%

Nevada $1,080,099 $7,052,603 $5,972,504 15%

New Hampshire d d

New Jersey $6,274,462 $6,546,266 $271,804 96%

New Mexico $870,000 $9,808,500 $8,938,500 9%

New York d d

North Carolina $882,189 $7,986,954 $7,104,765 11%

North Dakota d d

Ohio $3,312,346 $11,913,067 $8,600,721 28%

Oklahoma $1,992,227 $11,525,063 $9,532,836 17%

Oregon $1,435,686 $2,852,203 $1,416,517 50%

Pennsylvania $5,143,381 $17,662,405 $12,519,024 29%

Puerto Rico $908,000e $8,890,277 $7,982,277 10%

Rhode Island $529,367e $5,542,959 $5,013,592 10%

South Carolina d d

South Dakota $331,043 $26,223,240 $25,892,197 1%

Tennessee $990,898 $12,670,625 $11,679,727 8%

Texas $3,444,543 $102,299,704 $98,855,161 3%

Utah $1,686,520 $4,576,666 $2,890,146 37%

Vermont $350,060 $10,328,863 $9,978,803 3%
Enclosure III

Fiscal Year 1998 Securities-Related Expenditures and Revenues of State Securities

Regulatory Agencies

Page 17 GAO/GGD-00-189R Financing State Securities Regulation

State

Reported

expenditures

(Q1.98)a

Reported

revenues

(Q2.98)a

Net revenues

(revenues minus

expenditures)

Expenditures as a

percentage of revenues

Virginia $2,831,603 $6,534,237 $3,702,634 43%

Washington $6,207,576 $25,770,030 $19,562,454 24%

West Virginia $609,593 $5,690,624 $5,081,031 11%

Wisconsin $1,932,600 $10,509,085 $8,576,485 18%

Wyoming $315,717e $2,253,302 $1,937,585 14%

Totalf$79,339,101g$483,002,114g$403,663,013 16%

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

Expenditures for California exceeded revenues because the state securities regulatory agency

temporarily waived certain categories of fees to reduce the fund reserve level.

c

State securities regulatory agency officials indicated that the expenditure amount was not available.

d

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

e

State securities regulatory agency officials provided an estimated expenditure or revenue amount.

f

Totals are the sum of both actual amounts and estimates, as provided by the state securities

regulatory agency officials.

g

State securities regulatory agency officials in four states indicated that total securities-related

expenditure amounts were not available. As a result, these states have been excluded from the totals

for both expenditures and revenues.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure IV

Fiscal Year 1999 Securities-Related

Expenditures and Revenues of State

Securities Regulatory Agencies

Page 18 GAO/GGD-00-189R Financing State Securities Regulation

State

Reported

expenditures

(1.99)a

Reported revenues

(2.99)a

Net revenues

(revenues minus

expenditures)

Expenditures as a

percentage of

revenues

Alabama $1,836,611 $9,278,666 $7,442,055 20%

Alaska $559,000 $7,269,464 $6,710,464 8%

Arizona $3,986,915 $16,080,647 $12,093,732 25%

Arkansas $1,682,668 $10,891,268 $9,208,600 15%

California $13,860,000b c $8,078,000b c ($5,782,000) 172%

Colorado $2,268,915 $2,291,909 $22,994 99%

Connecticut d d

Delaware $517,652 $8,419,683 $7,902,031 6%

District of Columbia $728,770 $2,653,545 $1,924,775 27%

Florida e e

Georgia e e

Hawaii d $4,627,343

Idaho $936,983 $3,363,000 $2,426,017 28%

Illinois $3,456,193 $17,943,182 $14,486,989 19%

Indiana $951,887 $5,566,937c $4,615,050 17%

Iowa $1,015,507c $8,446,951 $7,431,444 12%

Kansas $1,863,909 $7,651,891 $5,787,982 24%

Kentucky $1,046,559c $6,759,000c $5,712,441 15%

Louisiana d $10,020,691

Maine $874,889 $9,296,182 $8,421,293 9%

Maryland e e

Massachusetts $1,870,235 $25,673,032 $23,802,797 7%

Michigan $2,227,927 $13,750,423 $11,522,496 16%

Minnesota $671,794 $29,575,346 $28,903,552 2%

Mississippi d $6,193,038

Missouri $811,710 $9,884,578 $9,072,868 8%

Montana $530,450 $6,655,546 $6,125,096 8%

Nebraska $903,478 $12,886,190c $11,982,712 7%

Nevada $1,100,000 $7,465,685 $6,365,685 15%

New Hampshire e e

New Jersey $6,705,349 $6,900,996 $195,647 97%

New Mexico $900,500 $11,081,800 $10,181,300 8%

New York e e

North Carolina $959,557 $9,168,143 $8,208,586 10%

North Dakota e e

Ohio $3,316,169 $12,385,013 $9,068,844 27%

Oklahoma $2,020,153 $10,757,324 $8,737,171 19%

Oregon $1,644,928 $3,161,042 $1,516,114 52%

Pennsylvania $5,713,118 $19,220,328 $13,507,210 30%

Puerto Rico $917,000c $10,413,447 $9,496,447 9%

Rhode Island $575,638c $5,997,377 $5,421,739 10%

South Carolina e e

South Dakota $346,387 $28,619,753 $28,273,366 1%

Tennessee $1,177,449 $12,553,861 $11,375,931 9%

Texas $3,480,273 $111,186,093 $107,705,820 3%

Utah $1,362,590 $4,632,950 $3,270,359 29%

Vermont $332,270 $11,077,213 $10,744,943 3%
Enclosure IV

Fiscal Year 1999 Securities-Related Expenditures and Revenues of State Securities

Regulatory Agencies

Page 19 GAO/GGD-00-189R Financing State Securities Regulation

State

Reported

expenditures

(1.99)a

Reported revenues

(2.99)a

Net revenues

(revenues minus

expenditures)

Expenditures as a

percentage of

revenues

Virginia $3,368,703 $6,724,526 $3,355,823 50%

Washington $7,939,535 $33,571,302 $25,631,767 24%

West Virginia $994,789 $5,955,100 $4,960,311 17%

Wisconsin $2,047,000 $11,413,037 $9,366,037 18%

Wyoming $313,072c $2,161,657 $1,848,585 14%

Totalf$87,816,532g$546,862,087g$459,045,073 16%

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

Expenditures for California exceeded revenues because the state securities regulatory agency

temporarily waived certain categories of fees to reduce the fund reserve level.

c

State securities regulatory agency officials provided an estimated expenditure or revenue amount.

d

State securities regulatory agency officials indicated that the expenditure or revenue amount was not

available.

e

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

f

Totals are the sum of both actual amounts and estimates, as provided by the state securities

regulatory agency officials.

g

State securities regulatory agency officials in four states indicated that total securities-related

expenditure amounts were not available. As a result, these states have been excluded from the totals

for both expenditures and revenues.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure V

Fiscal Year 1998 Securities-Related Revenue

Categories as Reported by State Securities

Regulatory Agencies

Page 20 GAO/GGD-00-189R Financing State Securities Regulation

Revenue category

State

Licensing and

registration

(Q3.a.98)b

Securities offerings

and notice filings

(Q4.a.98)b

Violation revenues

(Q5.a.98.)b

Other revenuesa

(Q6.a.98)b

Total securities

revenues

(Q2.98)b

Alabama $4,032,240 $4,633,424 $187,350 $18,130 $8,871,144

Alaska $3,742,230 $3,170,133 $45,500 $0 $6,957,863

Arizona $5,414,540 $9,311,101 $115,579 $33,329 $14,874,549

Arkansas $5,051,325 $5,405,649 $21,000 $0 $10,477,974

California $3,071,000 $4,825,594 $313,067 $608,005 $8,817,666

Colorado $1,678,027 $542,455c $0 $0 $2,220,482

Connecticut d d $112,360c $0 $9,589,450

Delaware $3,651,945 $4,315,279 $126,969 $864 $8,095,057

District of Columbia $2,458,890 $0e $1,000 $0 $2,459,890

Floridaf

Georgiaf

Hawaii $2,845,300 $606,400 $42,612 $1,029,804 $4,524,116

Idaho $1,250,500 $1,839,500 $28,000 $0 $3,118,000

Illinois $12,546,884 $4,875,497 $147,160 $0 $17,569,541

Indiana $2,581,425 c $73,885 $0 $5,238,955c

Iowa $2,392,540 $5,327,478 $17,508 $1,579 $7,739,105

Kansas $3,857,290 $3,197,700 $9,375 $15,745 $7,080,110

Kentucky $3,646,667c $2,198,333c $0 $0 $5,845,000c

Louisiana $4,638,780 $4,907,317 $0 $0 $9,546,097

Maine $2,415,760 $6,144,800 $21,428 $405 $8,582,393

Marylandf

Massachusetts $7,656,825 $15,492,079 $10,801 $6,778 $23,166,483

Michigan $3,832,169 $9,560,348 $62,786 $6,041 $13,461,344

Minnesota $4,753,500 $22,842,034 $12,500 $0 $27,608,034

Mississippi $3,090,712 $2,378,678 $528,028 $0 $5,997,418

Missouri d d $22,980 $0 $8,961,533

Montana $2,874,020 $3,343,995 $32,212 $0 $6,250,227

Nebraska $2,700,465c $9,362,018 $54,246c $19,845 $12,136,574c

Nevada $4,830,855 $2,188,994 $6,473 $26,281 $7,052,603

New Hampshiref

New Jersey $5,774,646 $616,750 $154,870 $0 $6,546,266

New Mexico $2,870,100 $6,841,000 $95,000 $2,400 $9,808,500

New Yorkf

North Carolina $6,926,275 $1,056,485 $0 $4,194 $7,986,954

North Dakotaf

Ohio $7,882,021 $4,031,046 $0 $0 $11,913,067

Oklahoma $4,225,278 $6,444,534 $825,750 $29,501 $11,525,063

Oregon $942,580c $1,556,002c $55,566 $298,055 $2,852,203

Pennsylvania $11,083,408 $6,409,018 $169,968 $11 $17,662,405

Puerto Rico $8,743,611 $0 $146,666 $0 $8,890,277

Rhode Island $4,081,809 $1,425,000c $36,150 $0 $5,542,959

South Carolinaf

South Dakota $5,678,875 $20,478,869 $65,496 $0 $26,223,240

Tennessee $4,290,125 $8,376,540 $2,979 $981 $12,670,625

Texas $36,236,456 $65,842,198 $221,050 $0 $102,299,704

Utah $2,181,760 $2,192,135 $201,650 $1,121 $4,576,666
Enclosure V

Fiscal Year 1998 Securities-Related Revenue Categories as Reported by State Securities

Regulatory Agencies

Page 21 GAO/GGD-00-189R Financing State Securities Regulation

Revenue category

State

Licensing and

registration

(Q3.a.98)b

Securities offerings

and notice filings

(Q4.a.98)b

Violation revenues

(Q5.a.98.)b

Other revenuesa

(Q6.a.98)b

Total securities

revenues

(Q2.98)b

Vermont $2,919,017 $7,354,696 $55,150 $0 $10,328,863

Virginia $4,874,410 $1,532,749 $127,078 $0 $6,534,237

Washington $1,416,637 $24,339,002 $1,161 $13,230 $25,770,030

West Virginia $4,134,270 $1,556,354 $0 $0 $5,690,624

Wisconsin $3,453,932 $6,714,573 $0 $340,579 $10,509,085

Wyoming $1,806,065 $435,737 $11,500 $0 $2,253,302

Totalgh $211,953,739h$293,671,494 $3,953,658h$2,456,878 $512,035,740h

a

Revenue generated by this activity would include examination fees, copy charges, no-action letters,

and agency publications.

b

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

c

State securities regulatory agency officials provided an estimated revenue amount.

d

State securities regulatory agency officials indicated that the licensing and notice filings and

registration revenue amounts were not available.

e

The District of Columbia did not have statutory authority to register securities offerings for this

period.

f

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

g

Totals are the sum of both actual amounts and estimates, as provided by the state securities

regulatory agency officials.

h

Totals for securities-related revenues do not include amounts reported by Connecticut, Indiana, and

Missouri because state securities regulatory agency officials indicated that data for one or more

subcategories were not available.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure VI

Fiscal Year 1999 Securities-Related Revenue

Categories Reported by State Securities

Regulatory Agencies

Page 22 GAO/GGD-00-189R Financing State Securities Regulation

Revenue category

State

Licensing and

registration

(Q3.a.99)b

Securities offerings

and notice filings

(Q4.a.99) b

Violation

revenues

(Q5.a.99) b

Other

revenuesa

(Q.6.a.99) b

Total securities

revenues

(Q2.99) b

Alabama $4,379,050 $4,789,466 $90,250 $19,900 $9,278,666

Alaska $3,850,900 $3,393,064 $25,500 $0 $7,269,464

Arizona $5,806,710 $10,156,138 $79,400 $38,399 $16,080,647

Arkansas $5,600,400 $5,280,868 $10,000 $0 $10,891,268

California $2,937,000c $4,214,000c $311,000c $616,000c $8,078,000c

Colorado $1,748,691 $543,218c $0 $0 $2,291,909

Connecticut d d $603,350c $0 d

Delaware $3,950,000 $4,445,118 $20,500 $4,065 $8,419,683

District of Columbia $2,624,295 $0e $29,250 $0 $2,653,545

Floridaf

Georgiaf

Hawaii $2,942,090 $558,750 $88,553 $1,037,950 $4,627,343

Idaho $1,406,600 $1,925,700 $30,700 $0 $3,363,000

Illinois $13,145,135 $4,673,086 $124,961 $0 $17,943,182

Indiana $2,739,625 d $125,100 d $5,566,937c

Iowa $2,672,655 $5,756,685 $16,667 $944 $8,446,951

Kansas $4,266,200 $3,302,135 $42,200 $41,356 $7,651,891

Kentucky $4,204,333c $2,554,667c $0 $0 $6,759,000c

Louisiana $5,027,180 $4,993,511 $0 $0 $10,020,691

Maine $2,638,410 $6,643,000 $14,284 $488 $9,296,182

Marylandf

Massachusetts $8,077,305 $17,575,822 $10,550 $9,355 $25,673,032

Michigan $4,079,111 $9,666,691 $0 $4,621 $13,750,423

Minnesota $5,121,550 $24,443,796 $10,000 $0 $29,575,346

Mississippi $3,430,020 $2,460,023 $302,995 $0 $6,193,038

Missouri $5,211,321 $4,563,325 $104,932 $5,000c $9,884,578

Montana $2,988,981 $3,611,621 $54,944 $0 $6,655,546

Nebraska $2,916,360c $9,905,223 $48,500c $16,107 $12,886,190c

Nevada $5,352,720 $2,021,103 $56,265 $35,597 $7,465,685

New Hampshiref

New Jersey $6,038,190 $647,750 $215,056 $0 $6,900,996

New Mexico $3,157,900 $7,641,900 $281,200 $800 $11,081,800

New Yorkf

North Carolina $7,620,380 $1,531,635 $0 $16,128 $9,168,143

North Dakotaf

Ohio $8,323,535 $4,061,478 $0 $0 $12,385,013

Oklahoma $4,585,772 $6,123,616 $20,900 $27,036 $10,757,324

Oregon $1,293,815c $1,660,832c $40,730 $165,665 $3,161,042

Pennsylvania $12,161,900 $6,765,145 $293,283 $0 $19,220,328

Puerto Rico $10,410,947 $0 $2,500 $0 $10,413,447

Rhode Island $4,626,477 $1,320,000c $50,900 $0 $5,997,377

South Carolinaf

South Dakota $6,535,850 $22,072,009 $11,894 $0 $28,619,753

Tennessee $4,672,750 $7,847,558 $33,072 $481 $12,553,380

Texas $38,485,867 $72,400,915 $299,311 $0 $111,186,093

Utah $2,320,545 $2,129,855 $181,900 $649 $4,632,949
Enclosure VI

Fiscal Year 1999 Securities-Related Revenue Categories Reported by State Securities

Regulatory Agencies

Page 23 GAO/GGD-00-189R Financing State Securities Regulation

Revenue category

State

Licensing and

registration

(Q3.a.99)b

Securities offerings

and notice filings

(Q4.a.99) b

Violation

revenues

(Q5.a.99) b

Other

revenuesa

(Q.6.a.99) b

Total securities

revenues

(Q2.99) b

Vermont $3,240,105 $7,799,708 $37,400 $0 $11,077,213

Virginia $5,121,070 $1,521,517 $81,939 $0 $6,724,526

Washington $3,259,500 $30,265,742 $31,600 $14,460 $33,571,302

West Virginia $4,513,090 $1,441,510 $500 $0 $5,955,100

Wisconsin $3,657,910 $7,408,402 $1,000 $345,725 $11,413,037

Wyoming $2,041,868 $117,839 $1,950 $0 $2,161,657

Totalg h $236,444,488 $320,234,421 $3,056,587 $2,400,726 $562,136,222

a

Revenue generated by this activity would include examination fees, copy charges, no action letters,

and agency publications.

b

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

c

State securities regulatory agency officials provided an estimated revenue amount.

d

State securities regulatory agency officials indicated that the securities-related revenue amount for

that category was not available.

e

The District of Columbia did not have statutory authority to register securities offerings for this period.

f

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

g

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

h

Totals do not include Connecticut and Indiana because data for one or more securities-related

revenue categories were not available.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure VII

Fiscal Year 1998 Revenue for Licensing and

Registration Subcategories

Page 24 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Broker-dealer

revenue

(Q3.b.1.98)a

Investment adviser

revenue

(Q3.b.2.98)a

Other licensing and/or

registration revenue

(Q3.b.3.98)a

Total licensing/registration

and notice filing revenue

(Q3.a.98)a

Alabama $3,831,290 $200,950 $0 $4,032,240

Alaska $3,697,633 $44,597 $0 $3,742,230

Arizona $5,222,830 $191,710 $0 $5,414,540

Arkansas $4,855,725 $187,725 $7,875 $5,051,325

California $2,251,000 $820,000 $0 $3,071,000

Colorado $1,678,027 $0 $0 $1,678,027

Connecticut b b b b

Delaware $3,442,445 $205,190 $4,310 $3,651,945

District of Columbia $2,283,755 $172,150 $2,985 $2,458,890

Floridac

Georgiac

Hawaii $1,952,450 $892,850 $0 $2,845,300

Idaho $1,201,000 $45,800 $3,700 $1,250,500

Illinois $12,090,384 $456,500 $0 $12,546,884

Indiana $2,581,425 $0 $0 $2,581,425

Iowa $2,392,540 $0 $0 $2,392,540

Kansas $3,656,240 $201,050 $0 $3,857,290

Kentucky $3,602,534d $44,133d $0 $3,646,667d

Louisiana $4,556,880 $81,900 $0 $4,638,780

Maine b b b $2,415,760

Marylandc

Massachusetts $7,063,685 $593,140 $0 $7,656,825

Michigan b b b $3,832,169

Minnesota $4,656,600 $96,900 $0 $4,753,500

Mississippi $2,970,712d $29,550d $90,450d $3,090,712

Missouri b b b b

Montana $2,634,020 $240,000 $0 $2,874,020

Nebraska $2,548,130d $150,820d $1,515d $2,700,465d

Nevada $4,698,225 $132,630 $0 $4,830,855

New Hampshirec

New Jersey $5,654,630 $120,000 $0 $5,774,646e

New Mexico $2,618,835 $182,565 $68,700 $2,870,100

New Yorkc

North Carolina $6,662,960 $263,315 $0 $6,926,275

North Dakotac

Ohio $7,882,021 $0 $0 $7,882,021

Oklahoma $3,852,722 $360,786 $11,770 $4,225,278

Oregon $887,815d $54,765d $0 $942,580

Pennsylvania $10,706,347 $377,061 $0 $11,083,408

Puerto Rico b b b $8,743,611

Rhode Island b b b $4,081,809

South Carolinac

South Dakota $5,586,175 $92,700 $0 $5,678,875

Tennessee $4,208,050 $82,075 $0 $4,290,125

Texas b b b $36,236,456

Utah $2,060,825 $120,935 $0 $2,181,760
Enclosure VII

Fiscal Year 1998 Revenue for Licensing and Registration Subcategories

Page 25 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Broker-dealer

revenue

(Q3.b.1.98)a

Investment adviser

revenue

(Q3.b.2.98)a

Other licensing and/or

registration revenue

(Q3.b.3.98)a

Total licensing/registration

and notice filing revenue

(Q3.a.98)a

Vermont $2,705,365 $206,812 $6,840 $2,919,017

Virginia $4,287,180 $581,230 $6,000 $4,874,410

Washington $1,197,705 $218,932 $0 $1,416,637

West Virginia $3,944,380 $108,635 $81,255 $4,134,270

Wisconsin $3,201,380 $189,442 $63,110 $3,453,932

Wyoming $1,806,065 $0 $0 $1,806,065

Totalf$151,129,985 $7,746,848 $348,510 $214,535,164

a

This item refers to the specific GAO survey that is the source of the information in the column. See

enclosure I.

b

State securities regulatory agency officials indicated that the revenue amount was not available.

c

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

d

State securities regulatory agency officials provided an estimated revenue amount.

e

The subcategory amounts reported by the state securities agency officials did not total reported

securities licensing and registration revenue.

f

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure VIII

Fiscal Year 1999 Licensing and Registration

Revenue

Page 26 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Broker-dealer

revenue

(Q3.b.1.99)a

Investment adviser

revenue

(Q3.b.2.99)a

Other licensing and/or

registration revenue

(Q3.b.3.99)a

Total licensing/registration

and notice filing revenue

(Q3.a.99)a

Alabama $4,159,700 $219,350 $0 $4,379,050

Alaska $3,774,043 $76,857 $0 $3,850,900

Arizona $5,596,690 $210,020 $0 $5,806,710

Arkansas $5,395,500 $197,325 $7,575 $5,600,400

California $1,454,000b $1,483,000b $0b $2,937,000b

Colorado $1,659,545 $89,146 $0 $1,748,691

Connecticut c c c c

Delaware $3,718,200 $228,950 $2,850 $3,950,000

District of Columbia $2,436,835 $185,355 $2,105 $2,624,295

Floridad

Georgiad

Hawaii $2,189,650 $752,440 $0 $2,942,090

Idaho $1,349,300 $54,100 $3,200 $1,406,600

Illinois $12,638,910 $506,225 $0 $13,145,135

Indiana $2,581,425 $0 $0 $2,581,425

Iowa $2,573,725 $98,930 $0 $2,672,655

Kansas $4,049,400 $216,800 $0 $4,266,200

Kentucky $4,084,667b $119,666b $0 $4,204,333b

Louisiana $4,932,230 $94,950 $0 $5,027,180

Maine c c c $2,638,410

Marylandd

Massachusetts $7,470,327 $606,978 $0 $8,077,305

Michigan c c c $4,079,111

Minnesota $5,021,150 $100,400 $0 $5,121,550

Mississippi $3,311,020b $27,600b $91,400b $3,430,020

Missouri c c c $5,211,321

Montana $2,738,981 $250,000 $0 $2,988,981

Nebraska $2,753,740b $161,600b $1,020b $2,916,360b

Nevada $5,214,800 $137,920 $0 $5,352,720

New Hampshired

New Jersey $5,901,190 $137,000 $0 $6,038,190

New Mexico $2,847,578 $181,595 $128,727 $3,157,900

New Yorkd

North Carolina $7,324,215 $296,165 $0 $7,620,380

North Dakotad

Ohio $8,248,300 $75,235 $0 $8,323,535

Oklahoma $4,167,095 $409,457 $9,220 $4,585,772

Oregon $1,224,570b $69,245b $0 $1,293,815

Pennsylvania $11,746,061 $415,839 $0 $12,161,900

Puerto Rico c c c $10,410,947

Rhode Island c c c $4,626,477

South Carolinad

South Dakota $6,354,450 $181,400 $0 $6,535,850

Tennessee $4,585,950 $86,800 $0 $4,672,750

Texas c c c $38,485,867

Utah $2,238,935 $81,610 $0 $2,320,545
Enclosure VIII

Fiscal Year 1999 Licensing and Registration Revenue

Page 27 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Broker-dealer

revenue

(Q3.b.1.99)a

Investment adviser

revenue

(Q3.b.2.99)a

Other licensing and/or

registration revenue

(Q3.b.3.99)a

Total licensing/registration

and notice filing revenue

(Q3.a.99)a

Vermont $3,010,325 $220,015 $9,765 $3,240,105

Virginia $4,537,420 $576,750 $6,900 $5,121,070

Washington $3,041,380 $218,120 $0 $3,259,500

West Virginia $4,346,060 $109,780 $57,250 $4,513,090

Wisconsin $3,394,140 $193,450 $70,320 $3,657,910

Wyoming $2,041,868 $0 $0 $2,041,868

Totale$164,271,575 $9,070,073 $390,332 $239,184,113

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

State securities regulatory agency officials provided an estimated revenue amount.

c

State securities regulatory agency officials indicated that the revenue amount was not available.

d

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

e

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure IX

Fiscal Year 1998 Securities Offerings Revenue

Page 28 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Notice (investment

company offerings)

(Q4.b.1.98)a

Registration by

coordination

(Q4.b.2.98)a

Registration by

qualification

(Q4.b.3.98)a

Exempt

offerings

(Q4.b.4.98)a

Other

revenue

(Q4.b.5.98)a

Total securities

offerings revenue

(Q4.a.98)a

Alabama $4,423,588 $57,795 $373 $96,900 $54,768 $4,633,424

Alaska $3,137,157 $6,743 $0 $26,233 $0 $3,170,133

Arizona $0 $0 $9,073,101 $238,000 $0 $9,311,101

Arkansas $5,153,023 $114,395 $0 $138,081 $150 $5,405,649

California $0 $557,162 $970,547 $2,408,238 $889,647 $4,825,594

Colorado $409,734b $44,200 $1,400 $82,675 $4,450 $542,455bc

Connecticut d d d d d d

Delaware $3,229,995 $1,085,284 $0 $0 $0 $4,315,279

District of

Columbia

e e e e $0 e

Floridaf

Georgiaf

Hawaii $577,150 $0 $29,250 $0 $0 $606,400

Idaho $1,828,000 $0 $0 $11,500 $0 $1,839,500

Illinois $3,296,695 d d $177,279 $0 $4,875,498c

Indiana d d d d d d

Iowa d d d $19,750 $0 $5,327,478

Kansas $2,710,625b $169,292b $6,334b $33,900b $277,549 $3,197,700

Kentucky d d d d d $2,198,333b

Louisiana $4,798,117 $0 $0 $109,200 $0 $4,907,317

Maine d d d d d $6,144,800

Marylandf

Massachusetts $0 $0 $0 $0 $0 $15,492,079

Michigan $0 $0 $0 $0 $0 $9,560,348

Minnesota $0 $0 $0 $0 $0 $22,842,034

Mississippi $0 $0 $0 $0 $0 $2,378,678

Missouri d d d d d d

Montana $2,275,000 $500,000 $225,000 $343,995 $0 $3,343,995

Nebraska $0 d d $32,000 $1,000 $9,362,018

Nevada $0 $0 $0 $1,759,403 $429,591 $2,188,994

New Hampshiref

New Jersey $0 $292,000 $0 $324,750 $0 $616,750

New Mexico $6,601,730 $136,570 $3,850 $98,850 $0 $6,841,000

New Yorkf

North Carolina $781,335 $178,540 $47,460 $49,150 $0 $1,056,485

North Dakotaf

Ohio d d d d d $4,031,046

Oklahoma $6,131,144b $94,194b $69,878b $119,000 $30,318 $6,444,534

Oregon $1,374,674b $0 $98,745b $64,657b $17,926b $1,556,002b

Pennsylvania $5,728,603 $116,075 $94,840 $466,550 $2,950 $6,409,018

Puerto Rico d d d d d d

Rhode Island d d d d d $1,425,000b

South Carolinaf

South Dakota $20,284,572 $142,575 $0 $45,450 $6,272 $20,478,869

Tennessee $7,963,871 $81,665 $12,904 $318,100 $0 $8,376,540

Texas d d d d d $65,842,198
Enclosure IX

Fiscal Year 1998 Securities Offerings Revenue

Page 29 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Notice (investment

company offerings)

(Q4.b.1.98)a

Registration by

coordination

(Q4.b.2.98)a

Registration by

qualification

(Q4.b.3.98)a

Exempt

offerings

(Q4.b.4.98)a

Other

revenue

(Q4.b.5.98)a

Total securities

offerings revenue

(Q4.a.98)a

Utah $2,014,115 $159,030 $2,430 $14,880 $1,680 $2,192,135

Vermont $6,975,123 $0 $49,925 $3,650 $325,998 $7,354,696

Virginia $839,251 $439,668 $8,850 $240,530 $4,450 $1,532,749

Washington $23,855,067 $146,513 $79,062 $258,360 $0 $24,339,002

West Virginia $1,494,135 d d $1,000 $30 $1,556,354c

Wisconsin $6,001,508 $121,510 $63,000 $87,000 $441,555 $6,714,573

Wyoming $375,100 $60,637 $0 $0 $0 $435,737

Totalg$115,633,191 $4,503,848 $10,836,949 $7,569,081 $2,488,334 $293,671,494

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

State securities regulatory agency officials provided an estimated revenue amount.

c

The subcategory amounts reported by the state securities agency officials did not total reported

securities offering revenue.

d

State securities regulatory agency officials indicated that the revenue amount was not available.

e

The District of Columbia did not have statutory authority to register securities offerings for this period.

f

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

g

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure X

Fiscal Year 1999 Securities Offerings Revenue

Page 30 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Notice (investment

company offerings)

(Q4.b.1.99)a

Registration by

coordination

(Q4.b.2.99)a

Registration by

qualification

(Q4.b.3.99)a

Exempt offerings

(Q4.b.4.99)a

Other revenue

(Q4.b.5.99)a

Securities

offerings revenue

(Q4.a.99)a

Alabama $4,584,370 $39,486 $4,910 $113,200 $47,500 $4,789,466

Alaska $3,358,646 $6,381 $0 $28,037 $0 $3,393,064

Arizona $0 $0 $9,891,088 $265,050 $0 $10,156,138

Arkansas $5,089,966 $63,453 $0 $126,249 $1,200 $5,280,868

California $0 $334,000 $918,000 $2,487,000 $475,000 $4,214,000

Colorado $422,468b $28,400 $1,400 $86,700 $4,250 $543,218b

Connecticut c c c c c c

Delaware $3,441,673 $1,003,445 $0 $0 $0 $4,445,118

District of

Columbia

d d d d d d

Floridae

Georgiae

Hawaii $557,000 $0 $1,750 $0 $0 $558,750

Idaho $1,911,700 $0 $0 $14,000 $0 $1,925,700

Illinois $3,182,197 c c $177,051 $0 $4,673,086

Indiana c c c c c c

Iowa c c c $23,400 $0 $5,756,685

Kansas $3,121,300b $44,419b $2,616b $36,300b $97,500b $3,302,135

Kentucky c c c c c $2,554,667b

Louisiana $4,883,061 $0 $0 $110,450 $0 $4,993,511

Maine c c c c c $6,643,000

Marylande

Massachusetts c c c c c $17,575,822

Michigan c c c c c $9,666,691

Minnesota c c c c c $24,443,796

Mississippi c c c c c $2,460,023

Missouri c c c c c $4,563,325

Montana $2,400,000 $500,000 $300,000 $411,621 $0 $3,611,621

Nebraska c c c $31,000 $0 $9,905,223

Nevada $0 $0 $0 $1,874,231 $146,972 $2,021,103f

New Hampshiree

New Jersey $0 $164,000 $0 $483,750 $0 $647,750

New Mexico $7,411,330 $141,345 $1,400 $87,825 $0 $7,641,900

New Yorke

North Carolina $1,236,560 $178,540 $47,460 $69,075 $0 $1,531,635

North Dakotae

Ohio c c c c c $4,061,478

Oklahoma $5,656,117b $215,802b $73,380b $8,600 $169,717 $6,123,616

Oregon $1,462,715b $0 $88,687b $95,409b $14,021b $1,660,832b

Pennsylvania $6,334,461 $56,800 $86,584 $281,700 $5,600 $6,765,145

Puerto Rico c c c c c c

Rhode Island c c c c c $1,320,000b

South Carolinae

South Dakota $21,996,719 $33,469 $0 $32,850 $8,971 $22,072,009

Tennessee $7,506,797 $69,401 $21,360 $250,000 $0 $7,847,558

Texas c c c c c $72,400,915
Enclosure X

Fiscal Year 1999 Securities Offerings Revenue

Page 31 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Notice (investment

company offerings)

(Q4.b.1.99)a

Registration by

coordination

(Q4.b.2.99)a

Registration by

qualification

(Q4.b.3.99)a

Exempt offerings

(Q4.b.4.99)a

Other revenue

(Q4.b.5.99)a

Securities

offerings revenue

(Q4.a.99)a

Utah $2,013,150 $98,200 $2,850 $13,270 $2,385 $2,129,855

Vermont $7,364,685 $0 $52,599 $0 $382,424 $7,799,708

Virginia $776,700 $466,300 $2,800 $272,200 $3,517 $1,521,517

Washington $29,708,726 $137,439 $71,167 $348,410 $0 $30,265,742

West Virginia $1,405,664 c c $1,400 $0 $1,441,510

Wisconsin $6,642,482 $87,750 $72,750 $97,500 $507,920 $7,408,402

Wyoming $68,266 $49,573 $0 $0 $0 $117,839

Totalg$125,741,992 $3,718,203 $11,640,801 $7,826,278 $1,866,977 $320,234,421

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

State securities regulatory agency officials provided an estimated revenue amount.

c

State securities regulatory agency officials indicated that the revenue amount was not available.

d

The District of Columbia did not have statutory authority to register securities offerings for this period.

e

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

f

The subcategory amounts reported by the state securities agency officials did not total reported

securities offering revenue.

g

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure XI

Fiscal Year 1998 Civil and Administrative

Violations Revenue

Page 32 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Fines and/or

penalties

(Q5.b.1.98)a

Disgorgements

(Q5.b.2.98)a

Reimbursement of

expenses

(Q5.b.3.98)a

Other revenue

(Q5.b.4.98) a

Total violation

revenue

(Q5.a.98)a

Alabama $133,750 $0 $53,600 $0 $187,350

Alaska $45,500 $0 $0 $0 $45,500

Arizona $115,579 $0 $0 $0 $115,579

Arkansas $21,000 $0 $0 $0 $21,000

California $9,390 $0 $303,677 $0 $313,067

Colorado $0 $0 $0 $0 $0

Connecticut $86,900b $0 $12,000b $13,460b $112,360b

Delaware $126,969 $0 $0 $0 $126,969

District of Columbia $1,000 $0 $0 $0 $1,000

Floridac

Georgiac

Hawaii $42,612 $0 $0 $0 $42,612

Idaho $28,000 $0 $0 $0 $28,000

Illinois $48,560 $0 $98,600 $0 $147,160

Indiana d d d d $73,885

Iowa $17,508 $0 $0 $0 $17,508

Kansas $9,375 $0 $0 $0 $9,375

Kentucky $0 $0 $0 $0 $0

Louisiana d d d d d

Maine d d d d $21,428

Marylandc

Massachusetts d d d d $10,801

Michigan $62,786 $0 $0 $0 $62,786

Minnesota $12,500 $0 $0 $0 $12,500

Mississippi d d d d $528,028

Missouri d d d d $22,980

Montana $32,212 $0 $0 $0 $32,212

Nebraska $51,257b $0 $2,989b $0 $54,246b

Nevada $6,473 $0 $0 $0 $6,473

New Hampshirec

New Jersey $154,870 $0 $0 $0 $154,870

New Mexico $93,200 $0 $1,800 $0 $95,000

New Yorkc

North Carolina $0 $0 $0 $0 $0

North Dakotac

Ohio $0 $0 $0 $0 $0

Oklahoma $824,550 $0 $1,200 $0 $825,750

Oregon $55,566 $0 $0 $0 $55,566

Pennsylvania $85,220 $0 $84,748 $0 $169,968

Puerto Rico d d d d $146,666

Rhode Island $36,150 $0 $0 $0 $36,150

South Carolinac

South Dakota $51,000 $0 $14,496 $0 $65,496

Tennessee $2,914 $0 $0 $65 $2,979

Texas $221,050 $0 $0 $0 $221,050

Utah $201,650 $0 $0 $0 $201,650
Enclosure XI

Fiscal Year 1998 Civil and Administrative Violations Revenue

Page 33 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Fines and/or

penalties

(Q5.b.1.98)a

Disgorgements

(Q5.b.2.98)a

Reimbursement of

expenses

(Q5.b.3.98)a

Other revenue

(Q5.b.4.98) a

Total violation

revenue

(Q5.a.98)a

Vermont $43,150 $0 $12,000 $0 $55,150

Virginia $97,600 $0 $29,478 $0 $127,078

Washington $0 $0 $1,161 $0 $1,161

West Virginia $0 $0 $0 $0 $0

Wisconsin $0 $0 $0 $0 $0

Wyoming $11,500 $0 $0 $0 $11,500

Totale$2,729,791 $0 $615,749 $13,525 $4,162,853

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

State securities regulatory agency officials provided an estimated revenue amount.

c

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

d

State securities regulatory agency officials indicated that the revenue amount was not available.

e

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Enclosure XII

Fiscal Year 1999 Civil and Administrative

Violations Revenue

Page 34 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Fines and/or

penalties

(Q5.b.1.99)a

Disgorgements

(Q5.b.2.99)a

Reimbursement of

expenses

(Q5.b.3.99)a

Other revenue

(Q5.b.4.99)a

Total violation

revenue

(Q5.a.99)a

Alabama $63,000 $0 $27,250 $0 $90,250

Alaska $25,500 $0 $0 $0 $25,500

Arizona $79,400 $0 $0 $0 $79,400

Arkansas $10,000 $0 $0 $0 $10,000

California $9,000b $0 $302,000b $0 $311,000b

Colorado $0 $0 $0 $0 $0

Connecticut $546,250b $0 $55,000b $2100 $603,350b

Delaware $20,500 $0 $0 $0 $20,500

District of

Columbia

$29,250 $0 $0 $0 $29,250

Floridac

Georgiac

Hawaii $88,553 $0 $0 $0 $88,553

Idaho $30,700 $0 $0 $0 $30,700

Illinois $98,561 $0 $26,400 $0 $124,961

Indiana d d d d $125,100

Iowa $16,667 $0 $0 $0 $16,667

Kansas $42,200 $0 $0 $0 $42,200

Kentucky $0 $0 $0 $0 $0

Louisiana d d d d d

Maine d d d d $14,284

Marylandc

Massachusetts d d d d $10,550

Michigan $0 $0 $0 $0 $0

Minnesota $10,000 $0 $0 $0 $10,000

Mississippi d d d d $302,995

Missouri d d d d $104,932

Montana $32,944 $0 $22,000 $0 $54,944

Nebraska $43,500b $0 $5,000b $0 $48,500b

Nevada $56,265 $0 $0 $0 $56,265

New Hampshirec

New Jersey $215,056 $0 $0 $0 $215,056

New Mexico $267,200 $0 $14,000 $0 $281,200

New Yorkc

North Carolina $0 $0 $0 $0 $0

North Dakotac

Ohio $0 $0 $0 $0 $0

Oklahoma $14,450 $0 $6,450 $0 $20,900

Oregon $40,730 $0 $0 $0 $40,730

Pennsylvania $132,907 $0 $160,376 $0 $293,283

Puerto Rico d d d d $2,500

Rhode Island $50,900 $0 $0 $0 $50,900

South Carolinac

South Dakota $500 $0 $11,394 $0 $11,894

Tennessee $33,022 $0 $0 $50 $33,072

Texas $299,311 $0 $0 $0 $299,311
Enclosure XII

Fiscal Year 1999 Civil and Administrative Violations Revenue

Page 35 GAO/GGD-00-189R Financing State Securities Regulation

Subcategory

State

Fines and/or

penalties

(Q5.b.1.99)a

Disgorgements

(Q5.b.2.99)a

Reimbursement of

expenses

(Q5.b.3.99)a

Other revenue

(Q5.b.4.99)a

Total violation

revenue

(Q5.a.99)a

Utah $181,901 $0 $0 $0 $181,901

Vermont $36,400 $0 $1,000 $0 $37,400

Virginia $50,799 $0 $31,140 $0 $81,939

Washington $0 $0 $0 $31,600 $31,600

West Virginia $500 $0 $0 $0 $500

Wisconsin $1,000 $0 $0 $0 $1,000

Wyoming $1,950 $0 $0 $0 $1,950

Totale$2,528,916 $0 $662,010 $33,750 $3,785,037

a

This item refers to the specific GAO survey question that is the source of the information in the

column. See enclosure I.

b

State securities regulatory agency officials provided an estimated revenue amount.

c

State securities regulatory agency officials did not respond or provided unusable responses to GAO’s

survey.

d

State securities regulatory agency officials indicated that the revenue amount was not available.

e

Totals included both actual and estimated revenue amounts, as provided by the state securities

regulatory agency officials.

Source: State securities regulatory agencies’ responses to GAO survey.
Page 36 GAO/GGD-00-189R Financing State Securities Regulation
Page 37 GAO/GGD-00-189R Financing State Securities Regulation
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