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House approves securities bill expanding enforcement authority, removing administrative fine cap
Summary
The House passed HB 106 to broaden the securities commissioner's rulemaking and sanction authority, make false statements during investigations unlawful and remove a statutory cap on administrative fines; members questioned the open-ended fine authority and administrative enforcement approach before the bill passed, 69–0.
SALT LAKE CITY — The Utah House on Monday approved HB 106, a package of securities amendments that broadens the Securities Division’s rulemaking authority, authorizes continuing-education requirements for investment advisers, and adjusts enforcement provisions including the removal of a statutory maximum on administrative fines.
Sponsor Representative Cunningham said the bill clarifies the division’s authority, adds sanctions and removes the cap on fines while imposing a 10-year statute of limitations for administrative actions. He said the bill also makes it unlawful to make false or misleading statements during examinations or investigations.
Representative Green asked whether removing a maximum fine would allow the division to impose open-ended penalties without a court’s oversight. Cunningham responded that the enforcement model mirrors district-court standards and pointed to statutory factors that guide fine determination; he also said the provision aligns administrative practice with judicial practice. Other members asked clarifying questions about licensing exemptions and statute-of-limitations parity with other administrative schemes.
Representative Cunningham stressed the bill’s consumer-protection goals and recounted common Ponzi-scheme harms when urging support. The measure passed the House, 69–0, and will be transmitted to the Senate.
Votes: House Bill 106 passed 69 yes, 0 no.
Source: Floor presentation and questioning recorded on the House third-reading calendar.
