in-20250514-IR-710250231FNA: The Securities Division (division) is soliciting public comment on adding rules at 710 IAC 5 concerning fines and civil penalties required by House Enrolled Act (HEA) 1623-2023. The division seeks comment on the affected citations listed and any other provisions of Title 710 that may be affected by this rulemaking.

Notice of First Public Comment Period LSA Document #25-231 Sec. 1. (a) Except as provided in subsection (b), the definitions contained in this article apply throughout this title. (b) If a definition in this article conflicts with a definition of specific applicability in another part of this title, or in a statute that controls another part of this title, the definition of specific applicability controls. Sec. 2. "Commissioner" means the securities commissioner appointed under IC 23-19-6-1(a). Sec. 3. (a) Except as provided in subsection (b), "fraud", "fraudulent", "deceit", and "defraud" have the meaning set forth in IC 23-19-1-2(9). (b) Fraud and deceit related to franchises includes: Sec. 4. "Harmed person" means the person harmed, defrauded, misled, or deceived by the violation. Sec. 5. (a) Except as provided in subsection (b), "person" has the meaning set forth in IC 23-19-1-2(20). (b) "Person", as it relates to commodities under IC 23-2-6, has the meaning set forth in IC 23-2-6-14. Sec. 6. "Respondent" means the responding party in legal proceedings that a fine or civil penalty has been imposed against. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-19. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed a maximum of ten thousand dollars ($10,000) on a respondent for each violation under IC 23-2.5. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of imposing a civil penalty. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty of not more than ten thousand dollars ($10,000) on a respondent for any single violation under IC 23-2-6. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy. Sec. 1. (a) The commissioner may impose a civil penalty in an amount not to exceed ten thousand dollars ($10,000) on a respondent for each violation under IC 25-11. Mitigating and aggravating factors can affect the amount of civil penalty imposed. (b) Nothing in this rule requires the commissioner to impose a civil penalty for a violation. Sec. 2. Mitigating factors are extenuating circumstances that may lead to a reduced civil penalty. The mitigating circumstances that may be considered include the following: Sec. 3. Aggravating factors are circumstances that may increase an imposed civil penalty. The aggravating circumstances that may be considered include the following: Sec. 4. In certain situations, several violations may have been committed. Separate violations may be grouped for the purpose of applying this policy. The total fine or civil penalty assessed in an enforcement case may include penalties for several violations or groups of violations, each calculated under this policy.