DAR File No. 31541

Commerce, Securities

R164-31

Administrative Fines

NOTICE OF PROPOSED RULE

DAR File No.: 31541
Filed: 06/06/2008, 03:57
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed new rule codifies guidelines to be considered by the Division Director when imposing an administrative fine.

Summary of the rule or change:

The new rule codifies guidelines to be considered by the Division Director when imposing an administrative fine.

State statutory or constitutional authorization for this rule:

Sections 61-1-6, 61-1-12, 61-1-14, 61-1-20, and 61-1-24

Anticipated cost or savings to:

the state budget:

None--The rule simply codifies guidelines to be considered by the Division Director when imposing an administrative fine.

local governments:

None--The rule simply codifies guidelines to be considered by the Division Director when imposing an administrative fine.

small businesses and persons other than businesses:

None--The rule simply codifies guidelines to be considered by the Division Director when imposing an administrative fine.

Compliance costs for affected persons:

None--The rule simply codifies guidelines to be considered by the Division Director when imposing an administrative fine.

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

This rule will have no fiscal impact on any businesses, as it simply codifies guidelines to be considered by the Division Director when imposing an administrative fine. 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
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

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:

07/31/2008

This rule may become effective on:

08/07/2008

Authorized by:

Thad LeVar, Deputy 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 Division Director 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 resulting either directly or indirectly from the violation;

(c) 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 made to other persons injured by the acts of the person;

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

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

(f) such other matters as justice may require.

 

KEY: administrative fines, securities regulation, securities

Date of Enactment or Last Substantive Amendment: 2008

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