Commerce, Securities

Rule R164-13

Definitions

Notice of Proposed Rule

(Repeal)

DAR File No.: 33014
Filed: 10/01/2009 04:39:01 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 78 passed in the 2009 General Session moved all of the defined terms formerly contained in this rule into Section 61-1-13. (DAR NOTE: H.B. 78 (2009) is found at Chapter 351, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

This rule is repealed in its entirety.

State statutory or constitutional authorization for this rule:

• Section 61-1-13

Anticipated cost or savings to:

the state budget:

No additional costs or savings. The removal to the statute of the definitions formerly contained in this rule will not necessitate any changes in personnel or operations.

local governments:

No effect--Local government personnel will be able to reference any needed definitions in the statute.

small businesses:

No effect--Small businesses will be able to readily reference the definitions in the statute.

persons other than small businesses, businesses, or local governmental entities:

No effect--The entities contemplated herein will be able to readily reference the definitions in the statute.

Compliance costs for affected persons:

No effect--Affected persons will be able to readily reference the definitions in the statute.

Comments by the department head on the fiscal impact the rule may have on businesses:

The repeal of this rule reflects policy decisions by the Legislature to transfer key definitions relevant to securities regulation to Section 61-1-13 of the Utah Uniform Securities Act. All definitions will be readily accessible in the statute and businesses will suffer no adverse fiscal impact.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Securities
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Benjamin Johnson at the above address, by phone at 801-530-6134, by FAX at 801-530-6980, or by Internet E-mail at bnjohnson@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/16/2009

This rule may become effective on:

12/01/2009

Authorized by:

Keith Woodwell, Director

R164. Commerce, Securities.

[R164-13. Definitions.

R164-13-1. Definitions.

(A) Authority and purpose

(1) The Division enacts this rule under authority granted by Sections 61-1-13 and 61-1-24.

(2) This rule defines several terms used in Title 61, Chapter 1, Utah Uniform Securities Act.

(B) Terms defined

In addition to the definitions in Section 61-1-13, as used in Title 61, Chapter 1:

(1) "Investment contract" includes:

(1)(a) any investment in a common enterprise with the expectation of profit to be derived through the essential managerial efforts of someone other than the investor; or

(1)(b) any investment by which:

(1)(b)(i) an offeree furnishes initial value to an offerer;

(1)(b)(ii) a portion of this initial value is subjected to the risks of the enterprise;

(1)(b)(iii) the furnishing of the initial value is induced by the offerer's promises or representations which give rise to a reasonable understanding that a valuable benefit of some kind over and above the initial value will accrue to the offeree as a result of the operation of the enterprise; and

(1)(b)(iv) the offeree does not receive the right to exercise practical or actual control over the managerial decisions of the enterprise.

(2) "Isolated transaction" means not more than a total of two transactions which occur anywhere during six consecutive months.

 

KEY: securities, securities regulation

Date of Enactment or Last Substantive Amendment: July 3, 1997

Notice of Continuation: July 30, 2007

Authorizing, and Implemented or Interpreted Law: 61-1-13; 61-1-24 ]