PART A

Sec. A-1. 32 MRSA §10303, as amended by PL 1997, c. 168, §§6 and 7, is further amended to read:

§10303. Investment adviser and investment adviser representative

licensing requirement

1. Investment advisers and investment adviser representatives. A person may not act in this State as an investment adviser or an investment adviser representative unless licensed or exempt from licensing under this Act.

2. Employment of suspended and barred persons. It is unlawful for an investment adviser to employ in connection with any of the investment adviser's investment advisory activities in this State any person who is then suspended or barred from association with a broker-dealer or investment adviser by the administrator. No investment adviser may be deemed to have violated this subsection if the investment adviser sustains the burden of proof that the investment adviser did not know, and in the exercise of reasonable care could not have known, of the suspension or bar. Upon request from an investment adviser, and for good cause shown, the administrator, by order, may waive the prohibition of this subsection with respect to a particular person then suspended or barred.

3. Employment of unqualified persons by investment advisers subject to licensing requirements in this State. It is unlawful for an investment adviser licensed or required to be licensed under this Act to employ or contract with an individual as a representative of the investment adviser in this State unless the individual is licensed and has satisfied all applicable examination requirements under this Act. For purposes of this subsection, "representative" means an individual who represents an investment adviser in doing any of the acts that make that person an investment adviser.

4. Employment of unqualified persons by investment advisers exempt under section 10304, subsection 2-A. It is unlawful for an investment adviser exempt from licensing under section 10304, subsection 2-A, to employ or contract with an individual who has a place of business in this State as a representative of the investment adviser unless the individual is licensed and has satisfied all applicable examination requirements under this Act, or unless the investment adviser is otherwise exempt from licensing under this Act. For purposes of this subsection, "representative" means an individual who represents an investment