HB 86: "An Act relating to nonrenewal of occupational licenses for default on a student loan."

00 HOUSE BILL NO. 86 01 "An Act relating to nonrenewal of occupational licenses for default on a student loan." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 45.55.060(a) is amended to read: 04 (a) The administrator may by order deny, suspend, or revoke a registration if 05 the administrator finds that the order is in the public interest and that the applicant or 06 registrant or, in the case of a broker-dealer or state investment adviser, a partner, 07 officer, or director, a person occupying a similar status or performing similar 08 functions, or a person directly or indirectly controlling the broker-dealer or state 09 investment adviser 10 (1) has filed an application for registration that, as of its effective date, 11 or as of a date after filing in the case of an order denying effectiveness, was 12 incomplete in a material respect or contained a statement that was, in light of the 13 circumstances under which it was made, false or misleading with respect to a material 14 fact; 15 (2) has wilfully or repeatedly violated, or failed to comply with, a

01 provision of this chapter or a regulation or order under this chapter; 02 (3) has been convicted, within the past 10 years, of a misdemeanor 03 involving a security or an aspect of the securities business or a felony; in this 04 paragraph, "convicted" includes a finding of guilt based on a verdict, judgment, plea 05 of guilty, or plea of nolo contendere, if the verdict, judgment, or plea has not been 06 reversed, set aside, or withdrawn, regardless of whether sentence has been imposed; 07 (4) is permanently or temporarily enjoined by a court from engaging in 08 or continuing conduct or a practice involving an aspect of the securities business; 09 (5) is the subject of an order of the administrator denying, suspending, 10 or revoking registration as a broker-dealer, agent, state investment adviser, or 11 investment adviser representative; 12 (6) is the subject of an order entered within the past five years by the 13 securities administrator of another state or by the United States Securities and 14 Exchange Commission denying or revoking registration as a broker-dealer, agent, 15 state investment adviser, investment adviser representative, or the substantial 16 equivalent of those terms as defined in this chapter, or is the subject of an order of the 17 United States Securities and Exchange Commission suspending or expelling the 18 person from a national securities exchange or national securities association registered 19 under 15 U.S.C. 78a - 78lll (Securities Exchange Act of 1934), or is the subject of a 20 United States Postal Service fraud order; but the administrator may not 21 (A) institute a revocation or suspension proceeding under this 22 paragraph more than one year from the date of the order relied on; and 23 (B) enter an order under this paragraph on the basis of an order 24 under another state act unless that order was based on facts that would 25 currently constitute a ground for an order under this section; 26 (7) has engaged in dishonest or unethical practices or conduct in the 27 securities or investment advisory business; 28 (8) is insolvent, in the sense that liabilities exceed assets, that 29 obligations cannot be met as they mature, or that the business cannot be continued 30 safely for the customers of the applicant or registrant, but the administrator may not 31 enter an order against a broker-dealer or state investment adviser under this paragraph

01 without a finding of insolvency as to the broker-dealer or state investment adviser; 02 (9) is not qualified on the basis of such factors as training, experience, 03 and knowledge of the securities business, except as otherwise provided in (d) of this 04 section; 05 (10) has failed to comply with the requirements of AS 45.55.050 to 06 make, keep, or produce records required by the administrator, or to file financial 07 reports or other information the administrator by regulation or order may require; or 08 (11) is a person [WHOSE LICENSE RENEWAL IS DENIED 09 UNDER AS 14.43.148 OR] whose license issuance or renewal is denied under 10 AS 25.27.244. 11 * Sec. 2. AS 14.43.145(a)(4), 14.43.148; and AS 21.27.390(d) are repealed.