DAR File No. 40498

Commerce, Securities

Rule R164-31

Administrative Fines

Notice of Proposed Rule

(Repeal)

DAR File No.: 40498
Filed: 06/15/2016 02:36:47 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

During the 2016 General Session of the Utah Legislature, H.B. 106 codified this rule into Section 61-1-31 of the Utah Uniform Securities Act. Accordingly, the administrative rule is no longer necessary.

Summary of the rule or change:

This rule is being repealed in its entirety.

State statutory or constitutional authorization for this rule:

• Section 61-1-6
• Section 61-1-20
• Section 61-1-24

Anticipated cost or savings to:

the state budget:

The repeal of this rule will not result in any anticipated cost or savings to the state budget because the rule merely identified factors to be considered when administrative fines are imposed, and that rule has now been incorporated into statute.

local governments:

The repeal of this rule will not result in any anticipated cost or savings to local government because the rule merely identified factors to be considered when administrative fines are imposed, and that rule has now been incorporated into statute.

small businesses:

The repeal of this rule will not result in any anticipated cost or savings to the small businesses because the rule merely identified factors to be considered when administrative fines are imposed, and that rule has now been incorporated into statute.

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

The repeal of this rule will not result in any anticipated cost or savings to persons other than small businesses, businesses, or local government entities because the rule merely identified factors to be considered when administrative fines are imposed, and that rule has now been incorporated into statute.

Compliance costs for affected persons:

There are no compliance costs for affected persons because the repeal of this rule, which identified factors to be considered when imposing administrative fines, does not require that any person take any action to ensure compliance.

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

This repeal deletes a rule that has been incorporated into Section 61-1-31 of the Utah Uniform Securities Act. No fiscal impact to businesses is anticipated by this rule repeal.

Francine A. Giani, Executive Director

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

Commerce
Securities
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Charles Lyons at the above address, by phone at 801-530-6940, by FAX at 801-530-6980, or by Internet E-mail at clyons@utah.gov
• Keith Woodwell at the above address, by phone at 801-530-6606, by FAX at 801-530-6980, or by Internet E-mail at kwoodwell@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:

08/01/2016

This rule may become effective on:

08/08/2016

Authorized by:

Keith Woodwell, Director

R164. Commerce, Securities.

[R164-31. Administrative Fines.

R164-31-1. Guidelines for the Assessment of Administrative Fines.

(A) Authority and purpose.

(1) The Division enacts this rule under authority granted by Sections 61-1-6, 61-1-12, 61-1-14, 61-1-20 and 61-1-24.

(2) This rule identifies guidelines for the assessment of administrative fines. The guidelines should not be considered all-inclusive but rather are intended to provide factors to be considered when imposing a fine.

(B) Guidelines.

(1) For the purpose of determining the amount of an administrative fine assessed against a person under the Utah Uniform Securities Act, the Commission shall consider the following factors:

(a) the seriousness, nature, circumstances, extent, and persistence of the conduct constituting the violation;

(b) the harm to other persons, including the amount of investor losses, resulting either directly or indirectly from the violation;

(c) any financial benefit, enrichment, commission, fee or other consideration received directly or indirectly by the person in connection with the violation;

(d) cooperation by the person in any inquiry conducted by the Division concerning the violation, efforts to prevent future occurrences of the violation, and efforts to mitigate the harm caused by the violation, including any restitution paid or disgorgement of ill-gotten gains to persons injured by the acts of the person;

(e) the history of previous violations by the person;

(f) the need to deter the person or other persons from committing such violations in the future;

(g) the costs of the Division incurred in investigating and prosecuting the action; and

(h) such other matters as justice may require.

 

KEY: administrative fines, securities regulation, securities

Date of Enactment or Last Substantive Amendment: January 8, 2013

Notice of Continuation: May 28, 2013

Authorizing, and Implemented or Interpreted Law: 61-1-6; 61-1-12; 61-1-14; 61-1-20; 61-1-24]