Section 409.6-605

Title XXVI TRADE AND COMMERCE

Chapter 409

Effective - 01 Sep 2003, see footnote   

  409.6-605.  Rules, forms, orders, interpretive opinions, and hearings. — (a)  The commissioner may:

  (1)  Issue forms and orders and, after notice and comment, may adopt and amend rules necessary or appropriate to carry out this act and may repeal rules, including rules and forms governing registration statements, applications, notice filings, reports, and other records;

  (2)  By rule, define terms, whether or not used in this act, but those definitions may not be inconsistent with this act; and

  (3)  By rule, classify securities, persons, and transactions and adopt different requirements for different classes.

  (b)  Under this act, a rule or form may not be adopted or amended, or an order issued or amended, unless the commissioner finds that the rule, form, order, or amendment is necessary or appropriate in the public interest or for the protection of investors and is consistent with the purposes intended by this act.  In adopting, amending, and repealing rules and forms, section 409.6-608 applies in order to achieve uniformity among the states and coordination with federal laws in the form and content of registration statements, applications, reports, and other records, including the adoption of uniform rules, forms, and procedures.

  (c)  Subject to Section 15(h) of the Securities Exchange Act and Section 222 of the Investment Advisers Act of 1940, the commissioner may require that a financial statement filed under this act be prepared in accordance with generally accepted accounting principles in the United States and comply with other requirements specified by rule adopted or order issued under this act.  A rule adopted or order issued under this act may establish:

  (1)  Subject to Section 15(h) of the Securities Exchange Act and Section 222 of the Investment Advisors Act of 1940, the form and content of financial statements required under this act;

  (2)  Whether unconsolidated financial statements must be filed; and

  (3)  Whether required financial statements must be audited by an independent certified public accountant.

  (d)  The commissioner may provide interpretative opinions or issue determinations that the commissioner will not institute a proceeding or an action under this act against a specified person for engaging in a specified act, practice, or course of business if the determination is consistent with this act.  A rule adopted or order issued under this act may establish a reasonable charge for interpretative opinions or determinations that the commissioner will not institute an action or a proceeding under this act.

  (e)  A penalty under this act may not be imposed for, and liability does not arise from conduct that is engaged in or omitted in good faith believing it conforms to a rule, form, or order of the commissioner under this act.

  (f)  A hearing in an administrative proceeding under this act must be conducted in public unless the commissioner for good cause consistent with this act determines that the hearing will not be so conducted.

  (g)  Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this act shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.  This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.

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(L. 2003 H.B. 380)

Effective 9-01-03