ARIZONA STATE SENATE
Phoenix, Arizona
securities; fees;
adjustments
Requires the Arizona Corporation Commission
Securities Division (ACCSD) to charge registration fees equal to the fees of
the state in which the security dealer resides.
Background
The
ACCSD regulates securities in the marketplace through registration activities,
oversight of securities, and investigative actions of securities dealers and
brokers, investment advisers and their representatives. All securities dealers,
salespersons, investment advisers, and investment adviser representatives are
required to register with the ACCSD. The Division reviews these applications
and monitors the conduct of investment advisers, dealers and salespersons;
investigates possible violations; and when the evidence warrants, initiates
administrative, civil or criminal enforcement actions. Another responsibility
of the ACCSD is to assess and collect fees from securities that register in the
state.
The amount of the fees
assessed by the ACCSD is set by Arizona statute. Each state or country has the
right to set their own fees for outside securities to register. Depending on
the state, the fees are either higher or lower than Arizona.
Currently, the ACCSD uses
the Central Registry Depository, which is overseen by the National Association
of Securities Dealers (NASD). An out of state security that registers in
Arizona would send applications and deposit fees electronically to the CRD. The
CRD is structured so security dealers can register in multiple states using one
system. The required fees are assessed to the security dealers through the CRD.
S.B. 1229 would change
Arizona’s fees depending on the state where a security dealer resided. The CRD
is not structured to assess fees based on such a variable structure. Since the
assessment would be on an individual basis rather than an established fee,
Arizona would have to set up their own depository system to meet the fee
changes that are contained in this bill.
According to the Corporation
Commission there is a fiscal impact associated with S.B. 1229 as a result of
the changes that the ACCSD would have to implement. It has not been determined
by ACCSD at this time if the fee changes contained in this bill will cover the
administrative changes. In the first year ACCSD estimates that their revolving
fund might be enough to cover the expenses of the necessary implementations,
but the years following could require additional appropriated monies from the
general fund. A fiscal note has not been requested from the JLBC.
Provisions
1. Requires securities dealers, brokers, investment advisers and their representatives to pay registration fees equal to the fees imposed by the state in which they originate.
2. Provides a general effective date.
Prepared by Senate Staff
February 6, 2001