Public Act 90-0667 of the 90th General Assembly
Public Act 90-0667
SB1694 Enrolled LRB9011287SMdv
AN ACT to amend the Illinois Securities Law of 1953 by
changing Sections 2.9, 2.12b, 2.30, and 14 and adding
Sections 2.10a and 8b.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Securities Law of 1953 is
amended by changing Sections 2.9, 2.12b, 2.30, and 14 and
adding Sections 2.10a and 8b as follows:
(815 ILCS 5/2.9) (from Ch. 121 1/2, par. 137.2-9)
Sec. 2.9. "Salesperson" means an individual, other than
an issuer or a dealer, employed or appointed or authorized by
a dealer, issuer or controlling person to offer, purchase or
sell securities in this State. The partners or officers of a
dealer or issuer shall not be deemed to be salespersons
within the meaning of this definition if they are not or have
not been regularly engaged in securities offering, purchasing
or selling activities other than transactions for their own
respective accounts. No individual shall be deemed to be a
salesperson solely by reason of effecting transactions in a
covered security to qualified purchasers as described in
Section 18(b)(3) of the Federal 1933 Act, effecting
transactions in a covered security as described in Section
18(b)(4)(D) of the Federal 1933 Act, or engaging in offers or
effecting sales of securities to employees of the issuer of
such securities or to employees of the parent or any
wholly-owned subsidiary of such issuer, provided that such
individual is an employee of such issuer, parent or
subsidiary who has not been employed primarily to make such
offers or sales and who receives no special compensation,
directly or indirectly, for or on account of any such offer
or sale. "Salesperson" also means a limited Canadian
salesperson. "Salesperson" also means an individual who, in
this State, communicates with members of the public to
identify prospective customers for the purpose of soliciting
the purchase or sale of securities or related services.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 5/2.10a new)
Sec. 2.10a. Telephone solicitor. "Telephone solicitor"
means a natural person who makes or causes to be made an
unsolicited telephone call with the intent to offer or sell a
security.
(815 ILCS 5/2.12b) (from Ch. 121 1/2, par. 137.2-12b)
Sec. 2.12b. Investment adviser representative.
"Investment adviser representative" means, with respect to an
investment adviser who is required to register under this
Act, any partner, officer, director of (or a person occupying
a similar status or performing similar functions), or other
natural person employed by or associated with an investment
adviser, except clerical or ministerial personnel, who in
this State:
(1) makes any recommendations or otherwise renders
advice regarding securities;
(2) manages accounts or portfolios of clients;
(3) determines what recommendation or advice regarding
securities should be given; or
(4) supervises any employee who performs any of the
foregoing.
With respect to a federal covered investment adviser,
"investment adviser representative" means any person who is
an investment adviser representative with a place of business
in this State as such terms are defined by the Securities and
Exchange Commission under Section 203A of the Federal 1940
Investment Advisers Act. "Investment adviser representative"
does not mean a federal covered investment adviser, a
supervised person of a federal covered investment adviser, or
a person defined by rule of the Securities and Exchange
Commission under Section 203A of the Federal Investment
Advisers Act as an investment adviser representative.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 5/2.30)
Sec. 2.30. Federal covered investment adviser. "Federal
covered investment adviser" means a person who is (i)
registered under Section 203 of the Federal 1940 Investment
Advisers Act or (ii) is excluded from the definition of
"investment adviser" under Section 202(a)(11) of the Federal
1940 Investment Advisers Act.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 5/8b new)
Sec. 8b. Telephone solicitation.
(a) A telephone solicitor may not make an unsolicited
telephone call to a natural person who does not have a
previously existing account relationship with the telephone
solicitor unless:
(1) immediately after making contact with the
natural person to whom the call is made the telephone
solicitor identifies himself or herself by name,
identifies the dealer, investment adviser, or other
person on whose behalf the telephone solicitor is
calling, and states the purpose of the call; and
(2) the telephone solicitor makes the telephone call
after 12:00 noon and before 9:00 p.m. on a Sunday or
after 9:00 a.m. and before 9:00 p.m. on a weekday or a
Saturday, as determined in the Central Time Zone.
(b) The Secretary of State may adopt rules or regulations
necessary to implement or enforce this Section.
(c) A telephone solicitor subject to this Section who
makes unsolicited telephone calls shall implement in-house
systems and procedures to ensure that every effort is made to
not call persons who ask not to be called by the telephone
solicitor again.
(815 ILCS 5/14) (from Ch. 121 1/2, par. 137.14)
Sec. 14. Sentence.
A. Any person who violates any of the provisions of
subsection A, B, C, or D or paragraph (3) of subsection K of
Section 12 of this Act shall be guilty of a Class A
misdemeanor; provided that if such person commits such
offense with knowledge of the existence, meaning or
application of the respective subsection as provided in
Section 4-3(c) of the Criminal Code of 1961, or, in the case
of a failure to comply with the terms of any order of the
Secretary of State as provided under subsection D of Section
12 of this Act, with knowledge of the existence of such
order, such person shall be guilty of a Class 4 felony.
B. Any person who violates any of the provisions of
subsection E, F, G, H, I, or J, or paragraph (1) or (2) of
subsection K of Section 12 of this Act shall be guilty of a
Class 3 felony.
B-5. A person who violates a provision of subsection E,
F, G, H, I, or J or paragraph (1) or (2) of subsection K of
Section 12 of this Act by use of a plan, program, or campaign
that is conducted using one or more telephones for the
purpose of inducing the purchase or sale of securities is
guilty of a Class 2 felony.
B-10. A person who in the course of violating a provision
of subsection E, F, G, H, I, or J or paragraph (1) or (2) of
subsection K of Section 12 of this Act induces a person 60
years of age or older to purchase or sell securities is
guilty of a Class 2 felony.
C. No prosecution for violation of any provision of this
Act shall bar or be barred by any prosecution for the
violation of any other provision of this Act or of any other
statute; but all prosecutions under this Act or based upon
any provision of this Act must be commenced within 3 years
after the violation upon which such prosecution is based;
provided however, that if the accused has intentionally
concealed evidence of a violation of subsection E, F, G, H,
I, J, or K of Section 12 of this Act, the period of
limitation prescribed herein shall be extended up to an
additional 2 years after the proper prosecuting officer
becomes aware of the offense but in no such event shall the
period of limitation so extended be more than 2 years beyond
the expiration of the period otherwise applicable.
D. For the purposes of this Act all persons who shall
sell or offer for sale, or who shall purchase or offer to
purchase, securities in violation of the provisions of this
Act, or who shall in any manner knowingly authorize, aid or
assist in any unlawful sale or offering for sale or unlawful
purchase or offer to purchase shall be deemed equally guilty,
and may be tried and punished in the county in which said
unlawful sale or offering for sale or unlawful purchase or
offer to purchase was made, or in the county in which the
securities so sold or offered for sale or so purchased or
offered to be purchased were delivered or proposed to be
delivered to the purchaser thereof or by the seller thereof,
as the case may be.
E. Any person who shall be convicted of a second or any
subsequent offense specified in subsection A, B, C, D, or
paragraph (3) of subsection K of Section 12 of this Act shall
be guilty of a Class 3 felony, and any person who shall be
convicted of a second or any subsequent offense specified in
subsection E, F, G, H, I, J, or paragraph (1) or (2) of
subsection K of Section 12 of this Act shall be guilty of a
Class 2 felony.
F. If any person referred to in this Section is not a
natural person, it may upon conviction of a first offense be
fined up to $25,000, and if convicted of a second and
subsequent offense, may be fined up to $50,000, in addition
to any other sentence authorized by law.
G. This Act shall not be construed to repeal or affect
any law now in force relating to the organization of
corporations in this State or the admission of any foreign
corporation to do business in this State.
H. For the purposes of this Act, all persons who sell or
offer for sale, or who purchase or offer to purchase any
mineral investment contract or mineral deferred delivery
contract in violation of the provisions of this Act or who,
in any manner, knowingly authorize, aid, or assist in any
unlawful sale or offer for sale or unlawful purchase or offer
to purchase any mineral investment contract or mineral
deferred delivery contract shall be deemed equally guilty and
may be tried and punished in the county in which the unlawful
sale or offer for sale or unlawful purchase or offer to
purchase any mineral investment contract or mineral deferred
delivery contract was made or in the county in which the
mineral investment contract or mineral deferred delivery
contract so sold or offered for sale or so purchased or
offered to be purchased was delivered or proposed to be
delivered to the purchaser thereof or by the seller thereof,
as the case may be, or in Sangamon County.
(Source: P.A. 87-463.)
Section 99. Effective date. This Act takes effect upon
becoming law.