An Act To Establish the Securities Restitution Assistance Fund for Victims of Securities Violations
Maine Legislature, Session 130, LD 1887
Committee: Judiciary
Sponsors: HARNETT, BAILEY, McCREA
Amends: 32 MRSA §16601

Legislative Document
No. 1887
H.P. 1397
House of Representatives, January 5, 2022
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 203.
Reference to the Committee on Judiciary suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative HARNETT of Gardiner.
Cosponsored by Senator BAILEY of York and
Representative: McCREA of Fort Fairfield.
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, the 
heirs and assigns of a named party in a restitution award in a final order and any other 
person with lawful authority to act for or on behalf 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 a 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 rules adopted pursuant to this chapter.
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
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 but did not receive the full 
amount of restitution ordered before the application for restitution assistance under section 
16523, subsection 2 was due.
2.  Funding. The fund consists of the following amounts received by the administrator:
A.  Five dollars of each annual agent renewal license 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;
B.  Five dollars of each annual investment adviser representative renewal license 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;
C.  All grants, donations and payments received or accepted by the administrator for 
victim restitution assistance; and
D.  Any other amounts designated by the administrator for victim restitution assistance.
3.  Nonlapsing 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 was a resident of the State at the time of the securities 
violation; and
B.  A person, other than a natural person, that was domiciled in the State at the time of 
the securities violation.
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.
§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 not a 
public record by section 16607, subsection 2, paragraph E.
§16525. Payment of restitution assistance; limits
1.  Payment cap. The administrator may award to a claimant restitution assistance that 
is:
A.  The lesser of $15,000 and 25% of the amount of unpaid restitution awarded in the 
final order if the victim is not an eligible adult; 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.  Waiver. The administrator may waive the payment caps in subsection 1 for good 
cause shown.
3. Award limited. An award of restitution assistance under this subchapter may be 
made to only one claimant per victim.
Restitution assistance awards may be made under this subchapter only to victims 
awarded restitution in a final order issued on or after the effective date of this subchapter.
§16526. Conditions under which award of restitution assistance prohibited
The administrator may not award restitution assistance if:
1.  Participating in or committing 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. Final order overturned; recovery of restitution assistance
If an award of restitution in a final order is overturned on appeal after restitution 
assistance under this subchapter has been paid, the administrator in the administrator's 
discretion may recover the restitution assistance from the claimant by order or may request 
that the Attorney General bring a civil action to recover the restitution assistance.
§16528. 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, except an execution, 
attachment, garnishment or other process brought by or on behalf of the State.
§16529. 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 involving 
forgery, fraud, deception or falsification in connection with a claim made under this 
subchapter forfeits any restitution assistance award paid to the claimant under this 
subchapter.
2.  Civil action for recovery. The administrator may request that the Attorney General 
bring a civil action in accordance with section 16603 to recover funds awarded to a claimant 
convicted of any crime involving forgery, fraud, deception or falsification in connection 
with a claim made under this subchapter.
§16530. Rights of State
1.  Subrogation. The State is subrogated to the rights of a 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 a victim for a 
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 a 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.
§16531. Refund of excess award
A claimant shall refund to the administrator any amount of restitution received that 
when combined with the restitution assistance under this subchapter exceeds the restitution 
award in the final order.
§16532. Return of recovered money to fund
The administrator shall return to the fund any money recovered by the administrator 
under this subchapter.
§16533. Suspension of payment
If payment of restitution assistance under this subchapter 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.
§16534. 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.  32 MRSA §16601, sub-§6, as enacted by PL 2005, c. 65, Pt. A, §2, is 
amended to read:
6.  Nonlapsing operating fund.  There Except as provided in section 16522, 
subsection 2, there is established an operating fund to be used to carry out the purposes of 
this chapter and any other statutory duties of the administrator. The operating fund consists 
of all annual renewal license fees for agents and investment adviser representatives 
received pursuant to this chapter.  Any balance in the operating fund does not lapse, but 
must be carried forward to be used for the same purposes.
Sec. 3. Transfers from available fiscal year 2022-23 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 
Department of Professional and Financial Regulation, Office of Securities Other Special 
Revenue Funds account to the Securities Restitution Assistance Fund established in the 
Maine Revised Statutes, Title 32, section 16522. 
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 were 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 but did not receive the full amount of 
restitution ordered before the application for restitution assistance was due. The fund is 
funded initially by a one-time transfer of $350,000 from the available balance of the 
dedicated revenue of the Office of Securities. Thereafter, the fund will be funded by a 
portion of agent and investment adviser representative renewal license fees and any grants, 
donations or other money received by the administrator for victim restitution assistance.