HOUSE BILL 325

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Sarah Maestas Barnes and Nick L. Salazar

AN ACT

RELATING TO SECURITIES; AMENDING THE NEW MEXICO UNIFORM SECURITIES ACT; ENHANCING PENALTIES FOR CERTAIN VIOLATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 58-13C-101 NMSA 1978 (being Laws 2009, Chapter 82, Section 101) is amended to read:

     "58-13C-101. SHORT TITLE.--[Sections 101 through 701 of this act] Chapter 58, Article 13C NMSA 1978 may be cited as the "New Mexico Uniform Securities Act"."

     SECTION 2. Section 58-13C-508 NMSA 1978 (being Laws 2009, Chapter 82, Section 508) is amended to read:

     "58-13C-508. CRIMINAL PENALTIES.--

          A. A person who willfully violates Section [501 or 502 of the New Mexico Uniform Securities Act] 58-13C-501 or 58-13C-502 NMSA 1978 is guilty of a third degree felony and, upon conviction, shall be fined not more than five thousand dollars ($5,000) or imprisoned not more than three years, or both, for each violation. For purposes of Subsection B of Section 31-18-13 NMSA 1978, the minimum term prescribed by this subsection is three years.

          B. A person who willfully violates Section 58-13C-501 or 58-13C-502 NMSA 1978 through an action involving a person over the age of sixty is guilty of a second degree felony and, upon conviction, shall be fined not more than ten thousand dollars ($10,000) or imprisoned not more than nine years, or both, for each violation. For purposes of Subsection B of Section 31-18-13 NMSA 1978, the minimum term prescribed by this subsection is three years.

          [B.] C. A person who willfully violates Section [505 of the New Mexico Uniform Securities Act] 58-13C-505 NMSA 1978 knowing the statement made to be false or misleading in a material respect is guilty of a third degree felony and, upon conviction, shall be fined not more than five thousand dollars ($5,000) or imprisoned not more than three years, or both, for each violation. For purposes of Subsection B of Section 31-18-13 NMSA 1978, the minimum term prescribed by this subsection is three years.

          [C.] D. No criminal penalties apply to violations of Section [504 of the New Mexico Uniform Securities Act] 58-13C-504 NMSA 1978 or the notice filing requirements of Section [302 or 405 of that act] 58-13C-302 or 58-13C-405 NMSA 1978.

          [D.] E. Except as provided in Subsections A through [C] D of this section, a person who willfully violates any provision of the New Mexico Uniform Securities Act or a rule adopted or order issued pursuant to that act is guilty of a fourth degree felony and, upon conviction, shall be fined not more than five thousand dollars ($5,000) or imprisoned not more than eighteen months, or both, for each violation. For purposes of Subsection B of Section 31-18-13 NMSA 1978, the minimum term prescribed by this subsection is eighteen months.

          [E.] F. An individual convicted of violating a rule or order pursuant to the New Mexico Uniform Securities Act may be fined, but shall not be imprisoned, if the individual did not have knowledge of the rule or order.

          [F.] G. For the purposes of this section, "willfully" means purposely or intentionally committing the act or making the omission and does not require an intent to violate the law or knowledge that the act or omission is unlawful.

          [G.] H. Each offense shall constitute a separate offense, and a prosecution for any one of such offenses shall not bar prosecution or conviction for any other offenses.

          [H.] I. All persons convicted of criminal violations of the New Mexico Uniform Securities Act shall be sentenced in accordance with the Criminal Sentencing Act or its successor statute.

          [I.] J. No indictment or information may be brought pursuant to this section more than five years after the alleged violation.

          [J.] K. The attorney general or the proper district attorney, with or without a referral from the director, may institute criminal proceedings pursuant to the New Mexico Uniform Securities Act. The attorney general or district attorney may request assistance from the director or employees of the division. When so requested by the director, the attorney general shall commission as a special assistant attorney general any attorney employed by the director or contracted with by the director and approved by the attorney general to assist the director in carrying out the director's duties, including providing legal advice and prosecuting offenders.

          [K.] L. The New Mexico Uniform Securities Act does not limit the power of New Mexico to punish a person for conduct that constitutes a crime pursuant to other laws of New Mexico."

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