BEFORE THE COMMISSIONER OF SECURITIES AND INSURANCE

MONTANA STATE AUDITOR

 

In the matter of the amendment of ARM 6.10.703 pertaining to Securities Restitution Fund

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

1. On March 10, 2016, at 10:00 a.m., the Commissioner of Securities and Insurance, Montana State Auditor, will hold a public hearing in the 2nd floor conference room, at the Office of the Commissioner of Securities and Insurance, Montana State Auditor (CSI), 840 Helena Ave., Helena, Montana, to consider the proposed amendment of the above-stated rule.

 

2. The CSI will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing, or need an alternative accessible format of this notice. If you require an accommodation, contact the CSI no later than 5:00 p.m., March 2, 2016, to advise us of the nature of the accommodation that you need. Please contact Darla Sautter, CSI, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-2726; TDD (406) 444-3246; fax (406) 444-3499; or e-mail [email protected].

 

3. The rule as proposed to be amended provides as follows, stricken matter interlined, new matter underlined:

 

          6.10.703 METHOD FOR CALCULATING PERCENTAGES AS THE FUND APPROACHES ZERO (1) and (2) remain the same.

          (a) eligible persons whose loss ratio is less than 10% are eligible for up to $2,500;. Eligible persons 60 years and older are eligible for up to $5,000;

          (b) eligible persons whose loss ratio is between 10% and 25% are eligible for up to $7,500;. Eligible persons 60 years and older are eligible for up to $15,000;

          (c) eligible persons whose loss ratio is between 25% and 50% are eligible for up to $12,500;. Eligible persons 60 years and older are eligible for up to $25,000;

          (d) eligible persons whose loss ratio is between 50% and 75% are eligible for up to $17,500;. Eligible persons 60 years and older are eligible for up to $35,000; and

          (e) through (4) remain the same.

 

          AUTH: 30-10-1008, MCA

          IMP: 30-10-1006, 30-10-1008, MCA

         

          4. STATEMENT OF REASONABLE NECESSITY: The Commissioner of Securities and Insurance, Montana State Auditor, Monica J. Lindeen, (commissioner) is the statewide elected official responsible for administering the Securities Act of Montana regulating the business of securities and insurance.

 

House Bill 57 was passed during the 2015 legislative session in order to provide heightened protections to vulnerable persons affected by securities fraud. Included in the bill was the authority to grant increased compensation to such individuals under the securities restitution assistance fund. The amendment to ARM 6.10.703 is reasonably necessary in order to implement this change to the fund compensation schedule.

 

          5. Concerned persons may submit their data, views, or arguments concerning the proposed action either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Jennifer Hudson, Attorney, Office of the Commissioner of Securities and Insurance, Montana State Auditor, 840 Helena Ave., Helena, Montana, 59601; telephone (406) 444-2040; fax (406) 444-5223; or e-mail [email protected], and must be received no later than 5:00 p.m., March 18, 2016.

 

          6. Jennifer Hudson, Attorney, has been designated to preside over and conduct this hearing.

 

          7. The CSI maintains a list of concerned persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to Darla Sautter using the contact information in 2 above, or may be made by completing a request form at any rules hearing held by the CSI.

 

          8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

          9. Pursuant to 2-4-302, MCA, the bill sponsor contact does apply. Representative Moffie Funk, bill sponsor, was notified via e-mail and phone call regarding this rule on January 26, 2016.

 

 

        10. Pursuant to 2-4-111, MCA, the proposed rule amendment does not significantly and directly impact small businesses.

 

          /s/ Nick Mazanec                         /s/ Jesse Laslovich                               

          Nick Mazanec                             Jesse Laslovich

          Rule Reviewer                             Chief Legal Counsel

 

          Certified to the Secretary of State February 8, 2016.