An Act To Establish the Securities Restitution Assistance Fund for Victims of Securities Violations
Maine Legislature, Session 129, LD 1704
Committee: Health Coverage, Insurance and Financial Services
Sponsors: HARNETT, CARPENTER, CARDONE, DOORE, EVANGELOS, RECKITT, WARREN

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.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  32 MRSA c. 135, sub-c. 5-A is enacted to read:
SUBCHAPTER 5-A
SECURITIES RESTITUTION ASSISTANCE FUND
§16521.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings.
1.  Claimant.  "Claimant" means a victim that files an application for restitution 
assistance under this subchapter.  "Claimant" includes the named party in a restitution 
award in a final order, the executor of a named party in a restitution award in a final order 
and the heirs and assigns of a named party in a restitution award in a final order.
2.  Eligible adult.  "Eligible adult" means:
A.  An individual 65 years of age or older; or
B.  An individual protected under the Adult Protective Services Act.
3.  Final order.  "Final order" means a final order issued by the administrator under 
this chapter or a final order issued by the court in a legal action initiated by the 
administrator under this chapter.
4.  Fund.  "Fund" means the Securities Restitution Assistance Fund established under 
section 16522.
5.  Securities violation.  "Securities violation" means a violation of this chapter and 
any related rules.
6.  Victim.  "Victim" means a person that suffered monetary injury as a result of a 
securities violation and was awarded restitution in a final order.
§16522.  Securities Restitution Assistance Fund; established
1.  Fund established.  The Securities Restitution Assistance Fund is established 
within the Department of Professional and Financial Regulation, Office of Securities to 
provide funds for restitution assistance for victims that were awarded restitution in a final 
order issued by the administrator under this chapter or were awarded restitution in a final 
order in a legal action initiated by the administrator under this chapter and have not 
received the full amount of restitution ordered before the application for restitution 
assistance is due.
2.  Funding.  The fund consists of amounts received by the administrator from:
A.  Civil fines ordered or agreed to by the administrator pursuant to section 16412, 
subsection 3 or section 16604, subsection 4 unless those funds have been designated 
by the administrator for other purposes;
B.  Civil fines agreed to by the administrator pursuant to Title 10, section 8003, 
subsection 5, paragraph B unless those funds have been designated by the 
administrator for other purposes;
C.  Civil fines ordered by a court pursuant to section 16603, subsection 2, paragraph 
B, subparagraph (3) unless those funds have been designated by the court or the 
administrator for other purposes;
D.  Five dollars of each broker-dealer agent renewal fee paid if the operating fund 
balance of the Office of Securities under section 16601, subsection 6 as of October 
1st of the previous calendar year exceeds 135% of the office's current annual budget;
E.  Five dollars of each investment adviser representative renewal fee paid if the 
operating fund balance of the Office of Securities under section 16601, subsection 6 
as of October 1st of the previous calendar year exceeds 135% of the office's current 
annual budget;
F.  All grants, donations and payments received or accepted by the administrator for 
victim restitution assistance; and
G.  Any other amounts designated by the administrator for victim restitution 
assistance.
3.  Nonlapsing operating fund.  The amounts received for the fund may be used by 
the administrator only to pay awards of restitution assistance under this subchapter and to 
administer this subchapter and may not be placed in the General Fund. Any balance in the 
fund does not lapse but must be carried forward to be used for the same purposes.
§16523.  Claims
1.  Eligible victims.  The following victims are eligible for restitution assistance:
A.  A natural person who is a resident of the State; and
B.  A person, other than a natural person, that is domiciled in the State.
2.  Application.  A person that is eligible for restitution assistance under this 
subchapter may submit an application in a manner and form prescribed by the 
administrator.  The administrator may provide forms for the submission of applications.
3.  Deadline.  The application for restitution assistance under this subchapter must be 
received by the administrator not more than one year after the date of the final order 
awarding restitution to the victim.
4.  Extension.  Notwithstanding subsection 3, the administrator may grant an 
extension of time for submission of an application for restitution assistance for good 
cause shown by the claimant.
Restitution assistance awards may be made under this subchapter to victims awarded 
restitution in a final order issued on or after the effective date of this subchapter.
§16524.  Confidentiality of personal information
Personal information contained in an application for restitution assistance under this 
subchapter is not subject to disclosure to the extent the information is designated as 
nonpublic by section 16607, subsection 2, paragraph E.
§16525.  Payment of restitution assistance; limits
1.  Payment cap.  The administrator may award restitution assistance to a claimant 
that is:
A.  The lesser of $15,000 and 25% of the amount of unpaid restitution awarded in the 
final order; or
B.  The lesser of $30,000 and 50% of the amount of unpaid restitution awarded in the 
final order if the victim is an eligible adult.
2.  Award limited.  An award of restitution assistance under this subchapter may be 
made only to one claimant per victim.
§16526.  Conditions under which award of restitution assistance prohibited
The administrator may not award restitution assistance if:
1.  Participating in or committing a securities violation.  The victim sustained the 
monetary injury primarily as a result of:
A.  Participating or assisting in a securities violation; or
B.  Attempting to commit or committing a securities violation;
2.  Profit from securities violation.  The victim profited or would have profited 
from a securities violation;
3.  Previous restitution assistance.  The victim has received restitution assistance 
under this subchapter in the previous 5 years; or
4.  Final order overturned.  An award of restitution in a final order is overturned on 
appeal.
§16527.  Award not subject to execution, attachment, garnishment or other process
A restitution assistance award made by the administrator under this subchapter is not 
subject to execution, attachment, garnishment or other process.
§16528.  Claimant convicted of forgery, fraud, deception or falsification forfeits 
restitution assistance award; recovery
1.  Conviction in connection with claim.  A claimant convicted of any crime 
including forgery, fraud, deception or falsification in connection with a claim made under 
this subchapter forfeits any restitution assistance award paid to the claimant under the 
subchapter.
2.  Civil action for recovery.  The administrator may request that the Attorney 
General bring a civil action under section 16603 to recover funds awarded to a claimant 
convicted of any crime including forgery, fraud, deception or falsification in connection 
with a claim under this subchapter.
§16529.  Rights of State
1.  Subrogation.  The State is subrogated to the rights of the claimant awarded 
restitution assistance under this subchapter to the extent of the restitution assistance 
award made.  The subrogation rights are against the person ordered to pay restitution to 
the victim for the securities violation.
2.  Lien on recovery.  The State is entitled to a lien in the amount of the restitution 
assistance award on any recovery made by or on behalf of the victim. The State may 
assert its right to this amount in a separate action or intervene in an action brought by or 
on behalf of the victim.
§16530.  Suspension of payment
If payment of restitution assistance would result in a fund balance below $250,000, 
the administrator may suspend payment of claims or prorate payment of claims at the 
administrator's discretion until such time as the administrator determines a sufficient 
balance has been restored to the fund.
§16531.  Rulemaking
The administrator may adopt rules pursuant to the Maine Administrative Procedure 
Act to carry out the purposes of this subchapter.  Rules adopted under this section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. 2.  Transfers from available fiscal year 2019-20 Office of Securities 
Other Special Revenue Funds balances to Securities Restitution Assistance 
Fund.  The State Controller shall transfer $350,000 from the available balance in the 
Office of Securities Other Special Revenue Fund account to the Securities Restitution 
Assistance Fund under the Maine Revised Statutes, Title 32, section 16522.
Sec. 3.  Appropriations and allocations.  The following appropriations and 
allocations are made.
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF
Securities Restitution Assistance Fund
Initiative:  Establishes an allocation to the Securities Restitution Assistance Fund.
SUMMARY
This bill establishes in the Department of Professional and Financial Regulation, 
Office of Securities the Securities Restitution Assistance Fund. The fund will be used to 
provide financial assistance to victims of securities violations that have been awarded 
restitution in a final order issued by the Securities Administrator or were awarded 
restitution in a final order in a legal action initiated by the administrator and that have not 
received the full amount of restitution ordered before the application for restitution 
assistance is due. The fund will be funded initially by a one-time transfer of $350,000 
from the dedicated revenue of the Office of Securities.  Thereafter, the fund will be 
funded by the civil fines ordered or agreed to by the administrator, a portion of broker-
dealer agent and investment adviser representative renewal fees and any grants, donations 
or other money received by the administrator for victim restitution assistance.
OTHER SPECIAL REVENUE FUNDS
2019-20
2020-21
All Other
$45,000
$45,000
OTHER SPECIAL REVENUE FUNDS TOTAL
$45,000
$45,000