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more than two-thirds of its circulation outside the District during the past twelve months, or (2) any radio or television program received in the District which originates outside of the District.

(f) Any applicant for a license under this Acst shall file with the Commission, in such form as it by rule may prescribe, an irrevocable consent appointing each member of the Commission or his successor in office to be his attorney to receive service of any lawful process in any noncriminal suit, action, or proceeding against him or his successor, executor, or adininistrator which shall arise under this Act or any rule or order hereunder after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who shall have filed such a consent in connection with one application or offering need not file another. Service may be made by leaving a copy of the process in the office of the Commission, but it shall not be effective unless (1) the plaintiff forthwith shall send notice of the service and a copy of the process by registered mail to the defendant or respondent at his last address on file with the Commission, and (2) the plaintiff's affidavit of compliance with this subsection shall be filed in the case on or before the return day of the process, if any. or within such further time as the court may allow.

(g) When any person, including any nonresident of the District, shall engage in conduct prohibited or made actionable by this Act or any rule or order under this Act and he shall not have filed a consent to service of process under subsection (f) and personal jurisdiction over him cannot otherwise be obtained in the District, that conduct shall be considered equivalent to his appointment of each member of the Commission, or his successor in office, to be his attorney to receive service of any lawful process in any noncriminal suit, action, or proceeding against him or his successor, executor, or administrator which shall arise from that conduct and which shall be brought under this Act or any rule or order under this Act, with the same force and validity as if served on him personally, Service may be made by leaving a copy of the process in the office of the Commission, but it shall not be effective unless (1) the plaintiff forthwith shall send notice of the service and a copy of the process by registered mail to the defendant or respondent at his last known address or shall take other steps reasonably calculated to give actual notice, and (2) the plaintiff's affidavit of compliance with this subsection shall be filed in the case on or before the return day of the process, if any, or within such further time as the court may allow.

(h) For the purposes of subsections (f) and (g) of this section, the term "plaintiff" includes the Commission in any suit, action, or proceeding initiated by it.

(i) After service of process under this section, the court, or the Commission in a proceeding before it, shall order such continuance as may be necessary to afford the defendant or respondent reasonable opportunity to defend.

ADMINISTRATION OF ACT

Sec. 16. (a) This Act shall be administered by the Public Service Commission of the District of Columbia. The Commission is hereby authorized to establish such offices and with such names or titles, and to appoint and employ such officers and employees and prescribe their duties, as may be necessary to carry out the provisions of this Act, and to prescribe the compensation of its officers and employees in accordance with the classification laws.

(b) All collections, including fees, received pursuant to this Act shall be deposited in the Treasury of the United States to the credit of the District of Columbia : Provided, That not to exceed $5,000 of such fees and other funds shall be re tained in a trust fund account for the purpose of defraying the expenses, as authorized by the Commission, of hearings held pursuant to this Act, including stenographic and reporting services (by contract or otherwise) and rental or purchase of equipment: Provided further, That the amount so retained shall not exceed $5,000 at any one time. Expenditures from such trust fund account shall be made in the same manner as provided by law for other expenditures of the District.

(c) Appropriations to carry out the purposes of this Act are hereby authorized.

(d) The provisions of section 8 of the Act entitled "An Act making appropriations to provide for the expenses of the government of the District of Columbia for the fiscal year ending June thirtieth, nineteen hundred and fourteen, and for other purposes", approved March 4, 1913 (37 Stat. 974, ch. 150) as now or here after amended (43 D.C. Code, 1961 edition) are, insofar as they are applicable,

made a part of this Act: Provided, That paragraph 42 of such section, as amended (43-412 D.C. Code, 1961 edition) shall not be deemed to be so applicable.

(e) A majority of the members of the Commission shall constitute a quorum to do business, and any vacancy shall not impair the power of the remaining members to exercise all the powers of the Commission. In the case of any application, investigation, inquiry, hearing or proceeding under this Act, the Commission may designate one of its members or a hearing examiner to examine documents, hear testimony, and submit to the Commission the record of testimony and such documents with his proposed findings and conclusions of fact and law.

(f) The Commission is hereby authorized to make, amend, and rescind such rules, orders, and forms as may be necessary to carry out the provisions of this Act, including, but not limited to, rules, orders, and forms governing applications and amendments thereto, investigations, inquiries, hearings, and proceedings, and including by rule definitions of any terms, whether or not used in this Act, insofar as the definitions are not inconsistent with the provisions of this Act. For the purpose of rules and forms, the Commission may classify persons and matters within its jurisdiction and may prescribe different requirements for different classes,

(g) No rule, form, or order may be made, amended, or rescinded, unless the Commission finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of this Act. In prescribing rules and forms the Commission may cooperate with the securities administrator of any State and the Securities and Exchange Commission with a view to effectuating the policy of this statute to achieve maximum uniformity in the form and content of license applications, records and reports, and other documents wherever practicable.

(h) The Commission may by rule or order prescribe (1) the form and content of statements, records, reports, and other documents required under this Act or rules or orders thereunder, (2) the circumstances under which such statements, records, reports, or other documents shall be filed with the Commission, and (3) whether any required statements, records, reports, or other documents shall be certified by independent or certified public accountants.

(i) All rules and forms of the Commission made under this Act shall be published.

(j) No provision of this Act imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, form, or order of the Commission, notwithstanding that the rule, form, or order may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

(k) A document shall be deemed to be filed or submitted to the Commission when it is received by it during regular business hours.

(1) The Commission shall keep a register of all license applications which are or have ever been effective under this Act, and all denial, suspension, postponement, or revocation orders entered under this Act. Such register shall be open for public inspection during regular business hours.

(m) License applications and materials submitted therewith or in connection therewith may be made available to the public under such rules as the Commission may prescribe. Such rules may include, but shall not be limited to, rules prescribing reasonable fees for furnishing photostatic or other copies upon request. The Commission may certify under seal such copy or copies of any document available to the public or any entry in the register, and any copy so certified shall be admitted as evidence with the same effect as the exemplifications of record referred to in section 1070 of the Act of March 3, 1901 (31 Stat. 1358; D.C. Code 14401).

(n) The Commission may refer evidence concerning violations of this Act or of any rule or order under this Act to the United States attorney for the District of Columbia who may, with or without such reference, institute criminal proceedings under this Act. The Commission shall comply with any request of the Attorney General of the United States, the Postmaster General of the United States, the Securities and Exchange Commission, or the United States attorney for the District of Columbia for any information or evidence coming to it in the administration of the Act. The Commission in its discretion may refer any information or evidence coming to it in the administration of this Act to the securities administrator of any State or to any national securities exchange or national securities association registered under the Securities Exchange Act of 1934.

(0) Any hearing held by the Commission pursuant to this Act shall be public unless the Commission in its discretion and with the consent of all the parties to such hearing order that the hearing be conducted privately.

JUDICIAL REVIEW

Sec. 17. The Act entitled "An Act to consolidate the Police Court of the District of Columbia and the Municipal Court of the District of Columbia, to be known as “the Municipal Court for the District of Columbia,' to create the Municipal Court of Appeals for the District of Columbia,' and for other purposes," approved April 1, 1942 (ch. 207, 56 Stat. 190), as amended (sec. 11-772, D.C. Code, 1961 edition) is hereby amended by adding to paragraph (e) of section 7 of said Act the following new subparagraph:

“(10) Any final order of the Public Service Commission of the District of Columbia under the provisions of the District of Columbia Securities Act."

SEVERABILITY SEC. 18. If any provision of this Act or the application thereof to any person or circumstance shall be held invalid, the invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to that end the provisions of this Act are severable.

EFFECTIVE DATE

SEC. 19. (a) Sections 3, 13(b), 13(d), and 16 of this Act, together with definitions of terms used therein, shall take effect upon approval of this Act.

(b) The remaining provisions of this Act shall take effect at 12:01 antemeridian on the one hundred and eightieth day after approval of this Act, or, if the one hundred eightieth day be a holiday in the District, at 12:01 antemeridian on the first business day thereafter.

TITLE II SEC. 201. The Public Utilities Commission of the District of Columbia established by paragraph 97 of section 8 of the Act entitled "An Act making appropriations to provide for the expenses of the government of the District of Columbia for the fiscal year ending June thirtieth, nineteen hundred and fourteen, and for other purposes", approved March 4, 1913 (37 Stat. 995), as amended (sec. 43–201, D.C. Code, 1961 edition), hereafter shall be known as the "Public Service Commission of the District of Columbia”. Whenever reference is made to the Public Utilities Commission of the District of Columbia in any Act of Congress, or in any compact authorized by an Act of Congress, or in any regulation or order, such reference shall be held to be a reference to the Public Service Commission of the District of Columbia.

SEC. 202. This title shall take effect upon approval of this Act.

Mr. ABERNETHY. The staff memoranda regarding the bill will also be inserted in the record.

(The memoranda follow :)

STAFF MEMORANDA

Re H.R. 4200, To regulate and license District of Columbia security dealers

PURPOSE

The District has no law covering security dealers—with the result that activity by unqualified or unscrupulous dealers has increased alarmingly. This bill is designed to correct the situation and is the product of the U.S. attorney for the District of Columbia and the District of Columbia Commissioners.

BACKGROUND (1) Complaints against District of Columbia securities dealers by the National Association of Securities Dealers have increased 650 percent within the past 5 years compared with 215 percent nationally.

made a part of this Act: Provided, That paragraph 42 of such section, as amended (43–412 D.C. Code, 1961 edition) shall not be deemed to be so applicable.

(e) A majority of the members of the Commission shall constitute a quorum to do business, and any vacancy shall not impair the power of the remaining members to exercise all the powers of the Commission. In the case of any application, investigation, inquiry, hearing or proceeding under this Act, the Commission may designate one of its members or a hearing examiner to examine documents, hear testimony, and submit to the Commission the record of testimony and such documents with his proposed findings and conclusions of fact and law.

(f) The Commission is hereby authorized to make, amend, and rescind such rules, orders, and forms as may be necessary to carry out the provisions of this Act, including, but not limited to, rules, orders, and forms governing applications and amendments thereto, investigations, inquiries, hearings, and proceedings, and including by rule definitions of any terms, whether or not used in this Act, insofar as the definitions are not inconsistent with the provisions of this Act. For the purpose of rules and forms, the Commission may classify persons and matters within its jurisdiction and may prescribe different requirements for different classes.

(g) No rule, form, or order may be made, amended, or rescinded, unless the Commission finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of this Act. In prescribing rules and forms the Commission may cooperate with the securities administrator of any State and the Securities and Exchange Commission with a view to effectuating the policy of this statute to achieve maximum uniformity in the form and content of license applications, records and reports, and other documents wherever practicable.

(h) The Commission may by rule or order prescribe (1) the form and content of statements, records, reports, and other documents required under this Act or rules or orders thereunder, (2) the circumstances under which such statements, records, reports, or other documents shall be filed with the Commission, and (3) whether any required statements, records, reports, or other documents shall be certified by independent or certified public accountants.

(i) All rules and forms of the Commission made under this Act shall be published.

(j) No provision of this Act imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, form, or order of the Commission, notwithstanding that the rule, form, or order may later be amended or rescinded or be determined by judicial or other authority to be invalid for any reason.

(k) A document shall be deemed to be filed or submitted to the Commission when it is received by it during regular business hours.

(1) The Commission shall keep a register of all license applications which are or have ever been effective under this Act, and all denial, suspension, postponement, or revocation orders entered under this Act. Such register shall be open for public inspection during regular business hours.

(m) License applications and materials submitted therewith or in connection therewith may be made available to the public under such rules as the Commission may prescribe. Such rules may include, but shall not be limited to, rules prescribing reasonable fees for furnishing photostatic or other copies upon request. The Commission may certify under seal such copy or copies of any document available to the public or any entry in the register, and any copy so certified shall be admitted as evidence with the same effect as the exemplifications of record referred to in section 1070 of the Act of March 3, 1901 (31 Stat. 1358; D.C. Code 14-401).

(n) The Commission may refer evidence concerning violations of this Act or of any rule or order under this Act to the United States attorney for the District of Columbia who may, with or without such reference, institute criminal proceedings under this Act. The Commission shall comply with any request of the Attorney General of the United States, the Postmaster General of the United States, the Securities and Exchange Commission, or the United States attorney for the District of Columbia for any information or evidence coming to it in the administration of the Act. The Commission in its discretion may refer any information or evidence coming to it in the administration of this Act to the securities administrator of any State or to any national securities exchange or national securities association registered under the Securities Exchange Act of 1934.

(0) Any hearing held by the Commission pursuant to this Act shall be public unless the Commission in its discretion and with the consent of all the parties to such hearing order that the hearing be conducted privately.

JUDICIAL REVIEW

Sec. 17. The Act entitled "An Act to consolidate the Police Court of the District of Columbia and the Municipal Court of the District of Columbia, to be known as 'the Municipal Court for the District of Columbia,' to create the Municipal Court of Appeals for the District of Columbia,' and for other purposes," approved April 1, 1942 (ch. 207, 56 Stat. 190), as amended (sec. 11-772, D.C. Code, 1961 edition) is hereby amended by adding to paragraph (e) of section 7 of said Act the following new subparagraph:

(10) Any final order of the Public Service Commission of the District of Columbia under the provisions of the District of Columbia Securities Act."

SEVERABILITY

SEC. 18. If any provision of this Act or the application thereof to any person or circumstance shall be held invalid, the invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to that end the provisions of this Act are severable.

EFFECTIVE DATE

SEC. 19. (a) Sections 3, 13(b), 13(d), and 16 of this Act, together with definitions of terms used therein, shall take effect upon approval of this Act.

(b) The remaining provisions of this Act shall take effect at 12:01 antemeridian on the one hundred and eightieth day after approval of this Act, or, if the one hundred eightieth day be a holiday in the District, at 12:01 antemeridian on the first business day thereafter.

TITLE II SEC. 201. The Public Utilities Commission of the District of Columbia established by paragraph 97 of section 8 of the Act entitled "An Act making appropriations to provide for the expenses of the government of the District of Columbia for the fiscal year ending June thirtieth, nineteen hundred and fourteen, and for other purposes”, approved March 4, 1913 (37 Stat. 995), as amended (sec. 43–201, D.C. Code, 1961 edition), hereafter shall be known as the "Public Service Commission of the District of Columbia". Whenever reference is made to the Public Utilities Commission of the District of Columbia in any Act of Congress, or in any compact authorized by an Act of Congress, or in any regulation or order, such reference shall be held to be a reference to the Public Service Commission of the District of Columbia.

SEC. 202. This title shall take effect upon approval of this Act.

Mr. ABERNETHY. The staff memoranda regarding the bill will also be inserted in the record.

(The memoranda follow :)

STAFF MEMORANDA

Re H.R. 4200, To regulate and license District of Columbia security dealers

PURPOSE

The District has no law covering security dealers—with the result that activity by unqualified or unscrupulous dealers has increased alarmingly. This bill is designed to correct the situation and is the product of the U.S. attorney for the District of Columbia and the District of Columbia Commissioners.

BACKGROUND (1) Complaints against District of Columbia securities dealers by the National Association of Securities Dealers have increased 650 percent within the past 5 years compared with 215 percent nationally.

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