An Act To Amend and Clarify the Maine Uniform Securities Act
Maine Legislature, Session 126, LD 0176
Committee: Insurance and Financial Services
Sponsors: WHITTEMORE, MORRISON, GRATWICK, DOAK, FITZPATRICK
Amends: 32 MRSA §16409, 32 MRSA §16508, 32 MRSA §16604

Legislative Document 
No. 176 
S.P. 65 
In Senate, January 31, 2013 
An Act To Amend and Clarify the Maine Uniform Securities Act 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator WHITTEMORE of Somerset. 
Cosponsored by Representative MORRISON of South Portland and 
Senator: GRATWICK of Penobscot, Representatives: DOAK of Columbia Falls, 
FITZPATRICK of Houlton. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  32 MRSA §16409, as enacted by PL 2005, c. 65, Pt. A, §2, is amended to 
read: 
§16409.  Withdrawal or nonrenewal of licensing of broker-dealer, agent, investment 
adviser and investment adviser representative 
Withdrawal of licensing by a broker-dealer, agent, investment adviser or investment 
adviser representative becomes effective 60 days after the filing of the application to 
withdraw or within any shorter period authorized by the administrator, unless a 
revocation or suspension proceeding is pending when the application is filed. If a 
proceeding is pending, the administrator shall make a determination with respect to the 
withdrawal application as part of the proceeding. The administrator may institute a 
revocation or suspension proceeding under section 16412 within one year after the 
withdrawal became effective automatically or within one year of a license's becoming 
ineffective due to nonrenewal under section 16406 and issue a revocation or suspension 
order as of the last date on which licensing was effective. 
Sec. 2.  32 MRSA §16508, sub-§1, as enacted by PL 2005, c. 65, Pt. A, §2, is 
amended to read: 
1.  Criminal penalties.  A person that intentionally or knowingly violates engages in 
an act that results in a violation of this chapter, or a rule adopted or order issued under 
this chapter, except section 16504 or the notice filing requirements of section 16302 or 
16405, or that intentionally or knowingly violates section 16505 knowing the statement 
made to be false or misleading in a material respect, upon conviction, commits a Class C 
crime.  In any prosecution under this section, the State need not prove that the defendant 
knew that any instrument involved was a security, that any instrument was required to be 
registered under section 16301 or that any license was required under sections 16401 to 
16404 or otherwise prove knowledge of this chapter or an intent to violate this chapter.  
An individual convicted of violating a rule or order under this chapter may be fined, but 
may not be imprisoned, if the individual did not have knowledge of the rule or order. 
Sec. 3.  32 MRSA §16604, sub-§4, as amended by PL 2011, c. 37, §3, is further 
amended to read: 
4.  Civil fine; final orders and remedies.  In a final order under subsection 3, the 
administrator may: order remedies described in subsection 1; censure that person; bar that 
person from association with any issuer, broker-dealer or investment adviser in this State; 
order restitution; or impose a civil fine not to exceed $5,000 per violation.  For a violation 
involving an investor 65 years of age or older, the amount of the civil fine may be 
doubled to an amount not to exceed a maximum of $10,000 per violation. 
SUMMARY 
The Maine Uniform Securities Act currently provides the Securities Administrator of 
the Office of Securities within the Department of Professional and Financial Regulation 
with the authority to institute a revocation or suspension proceeding against a licensee 
within one year after withdrawal of a license by a licensee.  This bill allows the 
administrator also to institute a revocation or suspension proceeding within one year of a 
license's becoming ineffective due to nonrenewal. 
The bill clarifies that the culpable mental state that must be proven to support a 
criminal conviction of a person under the Maine Uniform Securities Act is that the person 
intentionally or knowingly engaged in conduct that violated the Act and that no proof of 
knowledge of the law is required. 
The Maine Uniform Securities Act provides for an order of restitution as part of a 
civil or criminal action under the Act.  The bill allows the administrator to order 
restitution in a final order as part of an administrative proceeding.  The Maine Uniform 
Securities Act provides that an order of the administrator may be appealed to the Superior 
Court by the person against whom the order is issued.