1. (a) General.

   1. (1) Utilizing the Investor Education Fund described in Arkansas Code § 23-42-213 of the Arkansas Securities Act, Arkansas Code § 23-42-101 et seq., the Securities Commissioner may administer an investor education program for the citizens of the State of Arkansas.

   2. (2) The purpose of the program will be to inform and educate the public regarding investments in securities in order to:

      1. (A) Help investors and potential investors evaluate their investment decisions;
      2. (B) Protect themselves from unfair, inequitable, and fraudulent offerings;
      3. (C) Choose their broker-dealers, agents, and investment advisers more carefully;
      4. (D) Be alert for false or misleading advertising or other harmful practices; and
      5. (E) Know their rights as investors.

2. (b) Grant program.

   1. (1)

      1. (A) Utilizing the fund described in Arkansas Code § 23-42-213 of the Arkansas Securities Act, the commissioner may administer a grant program to solicit grant proposals from public schools and nonprofit organizations (Internal Revenue Code Section 501(c)(3), tax-exempt organizations) for the purpose of providing securities/investment education to teachers and students about the:

3. (i) Securities industry;

   1. (ii) Securities markets; and

      1. (iii) Investment decisions.
      2. (B) Eligible applicants are public schools and nonprofit groups that provide investment education to Arkansas students in grades five (5) through twelve (12).
      3. (C) The commissioner may establish the number of grant awards available as well as the amount of moneys available for award through the grant program.
      4. (D) Grant funds awarded may be used to procure any appropriate educational, resource, software materials, and equipment consistent with the purpose of the grant program, this subpart, and Arkansas Code § 23-42-213 of the Arkansas Securities Act.
      5. (E) The commissioner may establish a grant proposal process by which eligible applicants may submit an application for a grant award.

      6. (F) A grant award by the commissioner will be based upon the merit of the grant proposal considering:

         1. (i) Educational need for the project;
         2. (ii) Learning objectives to be accomplished by the project;
         3. (iii) Specific description of the project;
         4. (iv) Number of students educated;
         5. (v) Description of measurable project outcomes; and
         6. (vi) Other school resources dedicated to the project.
      7. (G) Each grant recipient shall file a final grant report detailing the measurable project outcomes and a financial accounting of actual program expenditures.

Codification Notes: Section 501(c)(3) of the Internal Revenue Code is codified at 26 U.S.C. § 501.