ADMINISTRATION AND JUDICIAL REVIEW

Idaho Code tit. 30, ch. 30-14, pt. 30-14-6

in effect

Idaho Code § 30-14-601 ADMINISTRATION.

30-14-601. ADMINISTRATION. (a) Administration. The administration of the provisions of this chapter shall be under the general supervision and control of the administrator. (b) Unlawful use of records or information. It is unlawful for the administrator or an officer, employee, or designee of the administrator to use for personal benefit or the benefit of others records or other information obtained by or filed with the administrator that are not public under section 30-14-607 (b), Idaho Code. This chapter does not authorize the administrator or an officer, employee, or designee of the administrator to disclose the record or information, except in accordance with section 30-14-602 , 30-14-607 (c) or 30-14-608 , Idaho Code. (c) No privilege or exemption created or diminished. This chapter does not create or diminish a privilege or exemption that exists at common law, by statute or rule, or otherwise. (d) Investor education. The administrator may develop and implement investor education initiatives to inform the public about investing in securities, with particular emphasis on the prevention and detection of securities fraud. In developing and implementing these initiatives, the administrator may collaborate with public and nonprofit organizations with an interest in investor education. The administrator may accept a grant or donation from a person that is not affiliated with the securities industry or from a nonprofit organization, regardless of whether the organization is affiliated with the securities industry, to develop and implement investor education initiatives. This subsection does not authorize the administrator to require participation or monetary contributions of a registrant in an investor education program. (e) The securities investor education and training fund. The securities investor education and training fund is hereby created to provide funds for the purposes specified in subsection (d) of this section. All moneys received by the state by reason of civil penalties and administrative fines collected pursuant to this chapter shall be deposited in the securities investor education and training fund up to but not exceeding fifty thousand dollars ($50,000) per year. The administrator may use funds in this account in a manner consistent with the duties of the department of finance under this chapter. [30-14-601, added 2004, ch. 45, sec. 2, p. 216.]

Idaho Code § 30-14-602 INVESTIGATIONS AND SUBPOENAS.

30-14-602. INVESTIGATIONS AND SUBPOENAS. (a) Authority to investigate. The administrator may: (1) Conduct public or private investigations within or outside of this state which the administrator considers necessary or appropriate to determine whether a person has violated, is violating, or is about to violate this chapter or a rule adopted or an order issued under this chapter, or to aid in the enforcement of this chapter or in the adoption of rules and forms under this chapter; (2) Require or permit a person to testify, file a statement, or produce a record, under oath or otherwise as the administrator determines, as to all the facts and circumstances concerning a matter to be investigated or about which an action or proceeding is to be instituted; and (3) Publish a record concerning an action, proceeding, or an investigation under, or a violation of, this chapter or a rule adopted or an order issued under this chapter if the administrator determines it is necessary or appropriate in the public interest and for the protection of investors. (b) Administrator powers to investigate. For the purpose of an investigation or proceeding under this chapter, the administrator or its designated officer may administer oaths and affirmations, subpoena witnesses, seek compulsion of attendance, take evidence, require the filing of statements, and require the production of any records that the administrator considers relevant or material to the investigation or proceeding. (c) Procedure and remedies for noncompliance. If a person does not appear or refuses to testify, file a statement, produce records, or otherwise does not obey a subpoena as required by the administrator under this chapter, the administrator may apply to any court of competent jurisdiction or a court of another state for an order to enforce compliance. The court may: (1) Hold the person in contempt; (2) Order the person to appear before the administrator; (3) Order the person to testify about the matter under investigation or in question; (4) Order the production of records; (5) Grant injunctive relief, including restricting or prohibiting the offer or sale of securities or the providing of investment advice; (6) Impose a civil penalty of not less than five hundred dollars ($500) and not greater than five thousand dollars ($5,000) for each violation; and (7) Grant any other necessary or appropriate relief. (d) Application for relief. This section does not preclude a person from applying to any court of competent jurisdiction or a court of another state for relief from a request to appear, testify, file a statement, produce records, or obey a subpoena. (e) Use immunity procedure. An individual is not excused from attending, testifying, filing a statement, producing a record or other evidence, or obeying a subpoena of the administrator under this chapter or in an action or proceeding instituted by the administrator under this chapter on the ground that the required testimony, statement, record, or other evidence, directly or indirectly, may tend to incriminate the individual or subject the individual to a criminal fine, penalty, or forfeiture. If the individual refuses to testify, file a statement, or produce a record or other evidence on the basis of the individual’s privilege against self-incrimination, the administrator may apply to any court of competent jurisdiction to compel the testimony, the filing of the statement, the production of the record, or the giving of other evidence. The testimony, record, or other evidence compelled under such an order may not be used, directly or indirectly, against the individual in a criminal case, except in a prosecution for perjury or contempt or otherwise failing to comply with the order. (f) Assistance to securities regulator of another jurisdiction. At the request of a law enforcement or other governmental or regulatory agency or self-regulatory organization, the administrator may provide assistance if the requesting entity states that it is conducting an investigation to determine whether a person has violated, is violating, or is about to violate a law or rule of the other state or foreign jurisdiction relating to securities matters that the requesting regulator administers or enforces. The administrator may provide the assistance by using the authority to investigate and the powers conferred by this section as the administrator determines is necessary or appropriate. The assistance may be provided without regard to whether the conduct described in the request would also constitute a violation of this chapter or other law of this state if occurring in this state. In deciding whether to provide the assistance, the administrator may consider whether the requesting regulator is permitted and has agreed to provide assistance reciprocally within its state, federal or foreign jurisdiction to the administrator on securities matters when requested; whether compliance with the request would violate or prejudice the public policy of this state; and the availability of resources and employees of the administrator to carry out the request for assistance. [30-14-602, added 2004, ch. 45, sec. 2, p. 216.]

Idaho Code § 30-14-603 CIVIL ENFORCEMENT.

30-14-603. CIVIL ENFORCEMENT. (a) Civil action instituted by administrator. If the administrator believes that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or an order issued under this chapter or that a person has, is, or is about to engage in an act, practice, or course of business that materially aids a violation of this chapter or a rule adopted or an order issued under this chapter, the administrator may maintain an action in any court of competent jurisdiction to enjoin the act, practice, or course of business and to enforce compliance with this chapter or a rule adopted or an order issued under this chapter. (b) Relief available. In an action under this section and on a proper showing, the court may: (1) Issue a permanent or temporary injunction, restraining order, or declaratory judgment; (2) Order other appropriate or ancillary relief, which may include: (A) An asset freeze, accounting, writ of attachment, writ of general or specific execution, and appointment of a receiver or conservator, that may be the administrator, for the defendant or the defendant’s assets; (B) Ordering the administrator to take charge and control of a defendant’s property, including investment accounts and accounts in a depository institution, rents, and profits; to collect debts; and to acquire and dispose of property; (C) Imposing a civil penalty not to exceed ten thousand dollars ($10,000) for each violation; an order of rescission, restitution, or disgorgement directed to a person that has engaged in an act, practice, or course of business constituting a violation of this chapter or the predecessor act or a rule adopted or an order issued under this chapter or the predecessor act; and (D) Ordering the payment of prejudgment and postjudgment interest; or (3) Order such other relief as the court considers appropriate. (c) No bond required. The administrator shall not be required to post a bond in an action or proceeding under this chapter. (d) Statute of limitation. If the administrator brings a civil action under this section, such action must be instituted within three (3) years from the discovery by the administrator of the facts constituting the alleged violation. [30-14-603, added 2004, ch. 45, sec. 2, p. 218; am. 2012, ch. 65, sec. 8, p. 186.]

Idaho Code § 30-14-604 ADMINISTRATIVE ENFORCEMENT.

30-14-604. ADMINISTRATIVE ENFORCEMENT. (a) Issuance of an order or notice. If the administrator determines that a person has engaged, is engaging, or is about to engage in an act, practice, or course of business constituting a violation of this chapter or a rule adopted or an order issued under this chapter or that a person has materially aided, is materially aiding, or is about to materially aid an act, practice, or course of business constituting a violation of this chapter or a rule adopted or an order issued under this chapter, the administrator may: (1) Issue an order directing the person to cease and desist from engaging in the act, practice, or course of business or to take other action necessary or appropriate to comply with this chapter; (2) Issue an order denying, suspending, revoking, or conditioning the exemptions for a broker-dealer under section 30-14-401 (b)(1)(D) or (F), Idaho Code, or an investment adviser under section 30-14-403 (b)(1)(C), Idaho Code; or (3) Issue an order under section 30-14-204 , Idaho Code. (b) Summary process. An order under subsection (a) of this section is effective on the date of issuance. Upon issuance of the order, the administrator shall promptly serve each person subject to the order with a copy of the order and a notice that the order has been entered. The order must include a statement whether the administrator will seek a civil penalty or costs of the investigation, a statement of the reasons for the order, and notice that, within fifteen (15) days after receipt of a request in a record from the person, the matter will be scheduled for a hearing. If a person subject to the order does not request a hearing and none is ordered by the administrator within thirty (30) days after the date of service of the order, the order, which may include a civil penalty or costs of the investigation if a civil penalty or costs were sought in the statement accompanying the order, becomes final as to that person by operation of law. If a hearing is requested or ordered, the administrator, after notice of and opportunity for hearing to each person subject to the order, may modify or vacate the order or extend it until final determination. (c) Procedure for final order. If a hearing is requested or ordered pursuant to subsection (b) of this section, a hearing must be held pursuant to chapter 52, title 67 , Idaho Code. A final order may not be issued unless the administrator makes findings of fact and conclusions of law in a record pursuant to chapter 52, title 67 , Idaho Code. The final order may make final, vacate, or modify the order issued under subsection (a) of this section. (d) Civil penalty. In a final order under subsection (c) of this section, the administrator may impose a civil penalty not to exceed five thousand dollars ($5,000) for each violation. (e) Costs. In a final order, the administrator may charge the actual cost of an investigation or proceeding for a violation of this chapter or a rule adopted or an order issued under this chapter. (f) Filing of certified final order with court — Effect of filing. If a petition for judicial review of a final order is not filed in accordance with section 30-14-609 , Idaho Code, the administrator may file a certified copy of the final order with the clerk of a court of competent jurisdiction. The order so filed has the same effect as a judgment of the court and may be recorded, enforced, or satisfied in the same manner as a judgment of the court. (g) Enforcement by court — Further civil penalty. If a person does not comply with an order under this section, the administrator may petition a court of competent jurisdiction to enforce the order. The court may not require the administrator to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order. The court may impose a further civil penalty against the person for contempt in an amount not less than five hundred dollars ($500) but not greater than five thousand dollars ($5,000) for each violation and may grant any other relief the court determines is just and proper in the circumstances. [30-14-604, added 2004, ch. 45, sec. 2, p. 218.]

Idaho Code § 30-14-605 RULES, FORMS, ORDERS, INTERPRETATIVE OPINIONS, AND HEARINGS.

30-14-605. RULES, FORMS, ORDERS, INTERPRETATIVE OPINIONS, AND HEARINGS. (a) Issuance and adoption of forms, orders, and rules. The administrator may: (1) Issue forms and orders and, after notice and comment, may adopt and amend rules necessary or appropriate to carry out this chapter and may repeal rules, including rules and forms governing registration statements, applications, notice filings, reports, and other records; (2) By rule, define terms, whether or not used in this chapter, but those definitions may not be inconsistent with this chapter; and (3) By rule, classify securities, persons, and transactions and adopt different requirements for different classes. (b) Findings and cooperation. Under this chapter, a rule or form may not be adopted or amended, or an order issued or amended, unless the administrator finds that the rule, form, order, or amendment is necessary or appropriate in the public interest or for the protection of investors and is consistent with the purposes intended by this chapter. In adopting, amending, and repealing rules and forms, section 30-14-608 , Idaho Code, applies in order to achieve uniformity among the states and coordination with federal laws in the form and content of registration statements, applications, reports, and other records, including the adoption of uniform rules, forms, and procedures. (c) Financial statements. Subject to section 15(i) of the securities exchange act (15 U.S.C. 78o(i)) and section 222 of the investment advisers act of 1940 (15 U.S.C. 80b-18a), the administrator may require that a financial statement filed under this chapter be prepared in accordance with generally accepted accounting principles in the United States and comply with other requirements specified by rule adopted or an order issued under this chapter. A rule adopted or an order issued under this chapter may establish: (1) Subject to section 15(i) of the securities exchange act (15 U.S.C. 78o(i)) and section 222 of the investment advisers act of 1940 (15 U.S.C. 80b-18a), the form and content of financial statements required under this chapter; (2) Whether unconsolidated financial statements must be filed; and (3) Whether required financial statements must be audited by an independent certified public accountant. (d) Interpretative opinions. The administrator may provide interpretative opinions or issue determinations that the administrator will not institute a proceeding or an action under this chapter against a specified person for engaging in a specified act, practice, or course of business if the determination is consistent with this chapter. A rule adopted or an order issued under this chapter may establish a reasonable charge for interpretative opinions or determinations that the administrator will not institute an action or a proceeding under this chapter. (e) Effect of compliance. A penalty under this chapter may not be imposed for, and liability does not arise from, conduct that is engaged in or omitted in good faith believing it conforms to a rule, form, or order of the administrator under this chapter. (f) Presumption for public hearings. A hearing in an administrative proceeding under this chapter must be conducted in public unless the administrator for good cause consistent with this chapter determines that the hearing will not be so conducted. [30-14-605, added 2004, ch. 45, sec. 2, p. 220; am. 2020, ch. 103, sec. 3, p. 277; am. 2022, ch. 101, sec. 4, p. 353.]

Idaho Code § 30-14-606 ADMINISTRATIVE FILES AND OPINIONS.

30-14-606. ADMINISTRATIVE FILES AND OPINIONS. (a) Public register of filings. The administrator shall maintain, or designate a person to maintain, a register of applications for registration of securities; registration statements; notice filings; applications for registration of broker-dealers, agents, investment advisers, and investment adviser representatives; notice filings by federal covered investment advisers that are or have been effective under this chapter or the predecessor act; notices of claims of exemption from registration or notice filing requirements contained in a record; orders issued under this chapter or the predecessor act; and interpretative opinions or no action determinations issued under this chapter. (b) Public availability. The administrator shall make all rules, forms, interpretative opinions, and orders available to the public. (c) Copies of public records. The administrator shall furnish a copy of a record that is a public record or a certification that the public record does not exist to a person that so requests. A rule adopted under this chapter may establish a reasonable charge for furnishing the record or certification. A copy of the record certified or a certificate by the administrator of a record’s nonexistence is prima facie evidence of a record or its nonexistence. [30-14-606, added 2004, ch. 45, sec. 2, p. 221.]

Idaho Code § 30-14-607 PUBLIC RECORDS — CONFIDENTIALITY.

30-14-607. PUBLIC RECORDS — CONFIDENTIALITY. (a) Presumption of public records. Except as otherwise provided in subsection (b) of this section, records obtained by the administrator or filed under this chapter, including a record contained in or filed with a registration statement, application, notice filing, or report, are public records and are available for public examination. (b) Nonpublic records. Records as set forth in section 74-111 , Idaho Code, are not public records and are not available for public examination under subsection (a) of this section. (c) Administrator discretion to disclose. If disclosure is for the purpose of a civil, administrative, or criminal investigation, action, or proceeding or to a person specified in section 30-14-608 (a), Idaho Code, the administrator may disclose a record obtained in connection with an audit or inspection under section 30-14-411 (d), Idaho Code, or a record obtained in connection with an investigation under section 30-14-602 , Idaho Code. [30-14-607, added 2004, ch. 45, sec. 2, p. 221; am. 2015, ch. 141, sec. 52, p. 419.]

Idaho Code § 30-14-608 UNIFORMITY AND COOPERATION WITH OTHER AGENCIES.

30-14-608. UNIFORMITY AND COOPERATION WITH OTHER AGENCIES. (a) Objective of uniformity. The administrator shall, in its discretion, cooperate, coordinate, consult, and, subject to section 30-14-607 , Idaho Code, share records and information with the securities regulator of another state, Canada, a Canadian province or territory, a foreign jurisdiction, the securities and exchange commission, the United States department of justice, the commodity futures trading commission, the federal trade commission, the securities investor protection corporation, a self-regulatory organization, a national or international organization of securities regulators, a federal or state banking or insurance regulator, and a governmental law enforcement or regulatory agency to effectuate greater uniformity in securities matters among the federal government, self-regulatory organizations, states, and foreign governments. (b) Policies to consider. In cooperating, coordinating, consulting, and sharing records and information under this section and in acting by rule, order, or waiver under this chapter, the administrator shall, in the administrator’s discretion, take into consideration in carrying out the public interest the following general policies: (1) Maximizing effectiveness of regulation for the protection of investors; (2) Maximizing uniformity in federal and state regulatory standards; and (3) Minimizing burdens on the business of capital formation, without adversely affecting essentials of investor protection. (c) Subjects for cooperation. The cooperation, coordination, consultation, and sharing of records and information authorized by this section include: (1) Establishing or employing one (1) or more designees as a central depository for registration and notice filings under this chapter and for records required or allowed to be maintained under this chapter; (2) Developing and maintaining uniform forms; (3) Conducting a joint examination or investigation; (4) Holding a joint administrative hearing; (5) Instituting and prosecuting a joint civil or administrative proceeding; (6) Sharing and exchanging personnel; (7) Coordinating registrations under section 30-14-301 , Idaho Code, and sections 30-14-401 through 30-14-404 , Idaho Code, and exemptions under section 30-14-203 , Idaho Code; (8) Sharing and exchanging records, subject to section 30-14-607 , Idaho Code; (9) Formulating rules, statements of policy, guidelines, forms, and interpretative opinions and releases; (10) Formulating common systems and procedures; (11) Notifying the public of proposed rules, forms, statements of policy, and guidelines; (12) Attending conferences and other meetings among securities regulators, which may include representatives of governmental and private sector organizations involved in capital formation, deemed necessary or appropriate to promote or achieve uniformity; and (13) Developing and maintaining a uniform exemption from registration for small issuers, and taking other steps to reduce the burden of raising investment capital by small businesses. [30-14-608, added 2004, ch. 45, sec. 2, p. 221.]

Idaho Code § 30-14-609 JUDICIAL REVIEW.

30-14-609. JUDICIAL REVIEW. Judicial review of orders. A final order issued by the administrator under this chapter is subject to judicial review in accordance with chapter 52, title 67 , Idaho Code. [30-14-609, added 2004, ch. 45, sec. 2, p. 222.]

Idaho Code § 30-14-610 JURISDICTION.

30-14-610. JURISDICTION. (a) Sales and offers to sell. Sections 30-14-301 , 30-14-302 , 30-14-401 (a), 30-14-402 (a), 30-14-403 (a), 30-14-404 (a), 30-14-501 , 30-14-506 , 30-14-509 and 30-14-510 , Idaho Code, do not apply to a person that sells or offers to sell a security unless the offer to sell or the sale is made in this state or the offer to purchase or the purchase is made and accepted in this state. (b) Purchases and offers to purchase. Sections 30-14-401 (a), 30-14-402 (a), 30-14-403 (a), 30-14-404 (a), 30-14-501 , 30-14-506 , 30-14-509 and 30-14-510 , Idaho Code, do not apply to a person that purchases or offers to purchase a security unless the offer to purchase or the purchase is made in this state or the offer to sell or the sale is made and accepted in this state. (c) Offers in this state. For the purpose of this section, an offer to sell or to purchase a security is made in this state, whether or not either party is then present in this state, if the offer: (1) Originates from within this state; or (2) Is directed by the offeror to a place in this state and received at the place to which it is directed. (d) Acceptances in this state. For the purpose of this section, an offer to purchase or to sell is accepted in this state, whether or not either party is then present in this state, if the acceptance: (1) Is communicated to the offeror in this state and the offeree reasonably believes the offeror to be present in this state and the acceptance is received at the place in this state to which it is directed; and (2) Has not previously been communicated to the offeror, orally or in a record, outside this state. (e) Publications, radio, television, or electronic communications. An offer to sell or to purchase is not made in this state when a publisher circulates or there is circulated on the publisher’s behalf in this state a bona fide newspaper or other publication of general, regular, and paid circulation that is not published in this state, or that is published in this state but has had more than two-thirds (2/3) of its circulation outside this state during the previous twelve (12) months or when a radio or television program or other electronic communication originating outside this state is received in this state. A radio or television program, or other electronic communication is considered as having originated in this state if either the broadcast studio or the originating source of transmission is located in this state, unless: (1) The program or communication is syndicated and distributed from outside this state for redistribution to the general public in this state; (2) The program or communication is supplied by a radio, television, or other electronic network with the electronic signal originating from outside this state for redistribution to the general public in this state; (3) The program or communication is an electronic communication that originates outside this state and is captured for redistribution to the general public in this state by a community antenna or cable, radio, cable television, or other electronic system; or (4) The program or communication consists of an electronic communication that originates in this state, but which is not intended for distribution to the general public in this state. (f) Investment advice and misrepresentations. Sections 30-14-403 (a), 30-14-404 (a), 30-14-405 (a), 30-14-502 , 30-14-505 and 30-14-506 , Idaho Code, apply to a person if the person engages in an act, practice, or course of business instrumental in effecting prohibited or actionable conduct in this state, whether or not either party is then present in this state. [30-14-610, added 2004, ch. 45, sec. 2, p. 223.]

Idaho Code § 30-14-611 SERVICE OF PROCESS.

30-14-611. SERVICE OF PROCESS. (a) Signed consent to service of process. A consent appointing the administrator the person’s agent for service of process in a noncriminal action or proceeding against the person, or the person’s successor or personal representative under this chapter or a rule adopted or an order issued under this chapter after the consent is filed, has the same force and validity as if the service were made personally on the person filing the consent. Registrants shall be required to submit a consent to service of process only if there has been a material change. (b) Conduct constituting appointment of agent for service. If a person, including a nonresident of this state, engages in an act, practice, or course of business prohibited or made actionable by this chapter or a rule adopted or an order issued under this chapter and the person has not filed a consent to service of process under subsection (a) of this section, the act, practice, or course of business constitutes the appointment of the administrator as the person’s agent for service of process in a noncriminal action or proceeding against the person or the person’s successor or personal representative. (c) Procedure for service of process. Service under subsection (a) or (b) of this section may be made by providing a copy of the process to the office of the administrator, but it is not effective unless: (1) The plaintiff, which may be the administrator, promptly sends notice of the service and a copy of the process, return receipt requested, to the defendant or respondent at the address set forth in the consent to service of process or, if a consent to service of process has not been filed, at the last known address, or takes other reasonable steps to give notice; and (2) The plaintiff files an affidavit of compliance with this subsection in the action or proceeding on or before the return day of the process, if any, or within the time that the court, or the administrator in a proceeding before the administrator, allows. (d) Service in administrative proceedings or civil actions by administrator. Service pursuant to subsection (c) of this section may be used in a proceeding before the administrator or by the administrator in a civil action in which the administrator is the moving party. (e) Opportunity to defend. If process is served under subsection (c) of this section, the court, or the administrator in a proceeding before the administrator, shall order continuances as are necessary or appropriate to afford the defendant or respondent reasonable opportunity to defend. [30-14-611, added 2004, ch. 45, sec. 2, p. 224; am. 2008, ch. 143, sec. 3, p. 423; am. 2012, ch. 65, sec. 9, p. 187.]

Idaho Code § 30-14-612 SEVERABILITY CLAUSE.

30-14-612. SEVERABILITY CLAUSE. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. [30-14-612, added 2004, ch. 45, sec. 2, p. 225.]

Source: Idaho State Legislature (legislature.idaho.gov)URL: https://legislature.idaho.gov/statutesrules/idstat/Title30/T30CH14PT6/Fetched: 10/20/2026