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Senate approves securities amendments aimed at enforcing failures‑to‑deliver; debate centers on federal preemption and effects on brokers
Summary
The Senate passed Senate Bill 3004 to tighten enforcement against naked short selling and failures‑to‑deliver. Supporters said it closes an enforcement gap harming Utah issuers; some senators raised concerns about federal preemption and impact on local brokers.
The Utah Senate on May 20, 2006, passed Senate Bill 3004, a package of securities amendments intended to strengthen state enforcement against naked short selling and aggregated failures‑to‑deliver that sponsors said have harmed Utah issuers.
Sponsor Senator Kurt Bramble said the bill “closes a loophole in enforcement of existing law” and gives Utah authorities tools to address misconduct that has depressed market equity for some companies. He cited concerns raised by Utah companies, including Overstock, and said the measure would help protect market value and make the state more attractive to publicly held corporations.
Debate on the floor focused on whether the bill duplicates or conflicts with…
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