PRINTER'S NO. 1786
No. 1440 Session of 2003
INTRODUCED BY BELARDI, ROONEY, MUNDY, BELFANTI, SOLOBAY,
LEDERER, READSHAW, GEIST, GRUCELA, LEACH, THOMAS, WATERS,
TIGUE, YOUNGBLOOD, BEBKO-JONES, SHANER, HARHAI, SURRA, JAMES,
GOODMAN, SCAVELLO, TANGRETTI, FRANKEL, WALKO, CORRIGAN AND
LAUGHLIN, MAY 12, 2003
REFERRED TO COMMITTEE ON COMMERCE, MAY 12, 2003
AN ACT
1 Amending the act of December 5, 1972 (P.L.1280, No.284),
2 entitled "An act relating to securities; prohibiting
3 fraudulent practices in relation thereto; requiring the
4 registration of broker-dealers, agents, investment advisers,
5 and securities; and making uniform the law with reference
6 thereto," further defining "broker-dealer"; and providing for
7 investments in terrorist-sponsoring nations.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 102(e) of the act of December 5, 1972
11 (P.L.1280, No.284), known as the Pennsylvania Securities Act of
12 1972, amended July 4, 2002 (P.L.721, No.108), is amended to
13 read:
14 Section 102. Definitions.--When used in this act, the
15 following definitions shall be applicable, unless the context
16 otherwise requires:
17 * * *
18 (e) "Broker-dealer" means any person engaged in the business
19 of effecting transactions in securities for the account of
1 others or for his own account, including persons who effect such
2 transactions on the Internet. "Broker-dealer" does not include:
3 (i) An agent;
4 (ii) An issuer;
5 (iii) A bank which meets the exceptions from the definition
6 of "broker" under section 3(a)(4)(B) or (E) or the definition of
7 "dealer" under section 3(a)(5)(B) or (C) of the Securities
8 Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. § 78c(a)(4)(B) or
9 (E) and 5(B) or (C));
10 (iv) An executor, administrator, guardian, conservator or
11 pledgee;
12 (v) A person who has no place of business in this State if
13 he effects transactions in this State exclusively with or
14 through (A) the issuers of the securities involved in the
15 transactions, (B) broker-dealers or institutional investors;
16 (vi) A person licensed as a real estate broker or agent
17 under the act of February 19, 1980 (P.L.15, No.9), known as the
18 Real Estate Licensing and Registration Act, and whose
19 transactions in securities are isolated transactions incidental
20 to that business; or
21 (vii) Other persons not within the intent of this subsection
22 whom the commission by regulation designates.
23 * * *
24 Section 2. The act is amended by adding a section to read:
25 Section 307. Investments in Terrorist-Sponsoring Nations.--A
26 broker-dealer shall report to the commission any investment in a
27 company which operates in a terrorist-sponsoring nation, and
28 provide to the commission any information which the broker-
29 dealer has regarding current or past terrorist activities
30 associated with the terrorist-sponsoring nation. The commission
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1 shall make the information available to all broker-dealers.
2 Section 3. This act shall take effect in 60 days.
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