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House floor debates fate of state securities law on 'naked short selling' as sponsor urges repeal
Summary
Lawmakers debated Senate Bill 277 and whether to refer it to the Rules Committee or repeal an existing state law that the sponsor says is likely preempted by federal securities law; members split between urgency and calls for more process and an SEC briefing.
SALT LAKE CITY — Lawmakers on the House floor debated Senate Bill 277, a securities law measure tied to concerns about so-called "naked short selling," as the bill’s sponsor urged colleagues to repeal a previously enacted state law rather than defend it in court.
Representative Urquhart, the bill’s sponsor, told colleagues the state last year passed a law aimed at addressing manipulative short-selling practices but that the statute is now in litigation and likely preempted by federal law. "We have a law that probably will not withstand judicial scrutiny because of federal preemption," Urquhart said, arguing repeal would avoid exposing the state to a harmful injunction and preserve the Legislature’s long-term authority.
The deb…
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