CHICAGO - July 23, 2012. Governor Pat Quinn today signed two new laws that will crack down on unauthorized use of handicap parking placards. The laws will help those with a disability find parking and help municipalities crack down on abuse that raises costs for taxpayers. The governor was joined by legislators, Illinois Secretary of State Jesse White and disability advocates from across Illinois.

"People who rely on handicap parking should not be victimized by those who would use fraudulent placards," Governor Quinn said. "These laws will ensure more fairness and fight fraud across Illinois."

House Bill 5624, sponsored by Rep. Karen May (D-Highland Park) and Sen. Maggie Crotty (D-Oak Forest), increases the initial fine for unauthorized use of a disability license plate or parking decal to $600 (up from $500), and doubles the initial fine for creating or possessing fraudulent disability plates and using a genuine disability placard in the absence of the authorized holder ($1000, up from $500). The new law also imposes an initial fine of $1000 on a physician or other specified healthcare professional who knowingly falsifies a certification for a person who does not have a disability to entitle him or her to a disability license plate or parking decal. The legislation was developed following numerous reports of abuse.

The legislation ends, effective in 2014, the full parking meter fee exemption for those with disability placards and allows the Secretary of State to issue a new meter-exempt decal to people with disabilities who meet certain requirements and who are unable to access or operate a parking meter. Fraud and misuse of this broad exemption have resulted in lost revenue and decreased parking availability for people with disabilities in municipalities across Illinois.

House Bill 5056, sponsored by Rep. John D'Amico (D-Chicago) and Sen. Martin Sandoval (D-Cicero), establishes tougher penalties for the improper use of a deceased person's handicap placard. The law makes the new offense a Class A misdemeanor with a minimum fine of $2,500 and mandatory revocation of the offender's driving privileges. It also raises the fine for a second conviction of misuse of a disability placard from $750 to $1000 and allows the Secretary of State to suspend or revoke driving privileges. The Secretary of State may also revoke or suspend the driving privileges of an offender who violates a similar local ordinance against improper use of disability placards. This bill is an initiative of the Secretary of State's Advisory Committee on Traffic Safety. The Secretary of State oversees 600,000 disabled-parking placards and 82,000 handicap license plates statewide.

"It is against all the laws of human decency for an able-bodied person to deprive a person with a disability of using a disability parking spot. I commend Governor Quinn for signing this important legislation," said Secretary of State Jesse White.

Both laws passed the General Assembly overwhelmingly and are effective Jan 1.

As Harrisburg, Penn., temperatures reached 93 degrees on Tuesday and continued to climb throughout the afternoon, it seemed an appropriate time for Secretary Tom Vilsack to announce a new proposed Federal Rule that could help rural homeowners and entrepreneurs save on their utility bills and create jobs in rural areas. The new energy efficiency effort will make federal loans available for rural electric cooperatives to re-lend to electric cooperative customers throughout America who want to make their homes and businesses more energy efficient. The partnership demonstrates a new "pathway to prosperity" according to Secretary Vilsack, and is "a reminder of President Obama's commitment to stronger rural communities, a stronger rural economy, and strengthening rural values."

The Secretary unveiled the details of the plan during a meeting with the Pennsylvania Rural Electric Association in downtown Harrisburg?a meeting attended by over 50 residents and businesses. The electric cooperatives, which distribute electricity in rural areas, will manage the loans and will collect payments on utility bills, allowing customers to spread out the loan payments. Homeowners and businesses will be able to seal air leaks and replace inefficient heating and air-conditioning systems through the program.

In addition to helping homeowners and businesses, the energy efficiency program will also create jobs for contractors who retrofit homes to make them more energy efficient and will help to reduce our dependence on foreign oil.

USDA Rural Development is accepting comments on the proposed Rule for 60 days. To find out more, click here.  To hear audio of the Secretary's announcement, click here.

Bipartisan bill would raise SEC's limits on securities fines, tie penalties to scope of harm, and crackdown on repeat offenders

WASHINGTON, DC - In an effort to prevent financial fraud and strengthen oversight and accountability of Wall Street, U.S. Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) are introducing bipartisan legislation to strengthen the Securities and Exchange Commission's (SEC) ability to crack down on securities laws violations.

The Stronger Enforcement of Civil Penalties Act (SEC Penalties Act) of 2012 will increase the statutory limits on civil monetary penalties, directly link the size of these penalties to the scope of harm and associated investor losses, and substantially raise the financial stakes for repeat offenders of our nation's securities laws.

Under existing law, the SEC can only penalize individual violators a maximum of $150,000 per offense and institutions $725,000.  In some cases, the SEC may calculate penalties to equal the gross amount of ill-gotten gain, but only if the matter goes to federal court, not when the SEC handles a case administratively.  The SEC Penalties Act increases the per violation cap applicable to the most serious securities laws violations to $1 million per violation for individuals, and $10 million per violation for entities.  In cases where the penalty is tied to the amount of money gained by the bad action, the SEC would be able to triple the penalty.  It would also triple the penalty cap for recidivists who have been convicted of securities fraud or subject to SEC administrative relief within the past five years.  The agency would be able to assess these types of penalties in-house, and not just in federal court.

"In order to protect taxpayers and investors, we need tougher anti-fraud laws and forceful oversight of Wall Street.  Some of these institutions that are 'too big to fail' have also become 'too big to care.'  If they look at the bottom line and see they can break the law, get caught, pay a nominal fine, and still profit, the cycle of misconduct will continue.  The law needs to change to ensure the punishment fits the crime.  This bill gives the SEC more tools to demand meaningful accountability from Wall Street," said Reed, the Chairman of the Banking Subcommittee on Securities, Insurance, and Investment.  "I am pleased to be joined by Senator Grassley in this bipartisan effort to enhance the SEC's ability to protect investors and crack down on fraud."

"If a fine is just decimal dust for a Wall Street firm, that's not a deterrent," Grassley said.  "It's just the cost of doing business.  A penalty should mean something, and it should get the recidivists' attention.  I especially like the increased penalties for repeat offenders in this bill.   That should help change the dynamic of business as usual.  If this legislation is enacted, as I hope it will be, I expect the SEC to use these new penalties.  The SEC doesn't always use all of the penalties at its disposal, and it should."

The SEC is responsible for overseeing approximately 35,000 entities, as well as the Financial Industry Regulatory Authority (FINRA), which itself oversees 4,500 brokers; the Public Company Accounting Oversight Board (PCAOB), which oversees auditors of public companies; and the Municipal Securities Rulemaking Board (MSRB), which regulates municipal securities firms and municipal advisors.

Last year, the SEC successfully brought 735 enforcement actions which resulted in the transfer of $2.8 billion in penalties and returned funds to harmed investors.

However, in a recent case between the SEC and two former Bear Stearns hedge fund managers who were indicted on charges of wire and securities fraud for misrepresenting the health of their funds that cost investors $1.6 billion, the SEC was forced to settle for civil penalties of $800,000 and $250,000, respectively.  Neither of the former executives admitted nor denied the allegations and were banned from the securities industry for three years and two years, respectively.

A summary of the SEC Penalties Act of 2012 follows:

Update Civil Money Penalties for Securities Law Violations. The bill modernizes and updates the maximum money penalties that may be obtained from individuals and entities charged with securities law violations in administrative and civil actions.

Most Serious Violations. The maximum penalty for an individual charged with the most serious violations (i.e., third tier violations involving fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement that resulted in substantial losses to victims or substantial pecuniary gain to the violator) could not exceed, for each violation, the greater of (i) $1 million, (ii) three times the gross pecuniary gain, or (iii) the losses incurred by victims as a result of the violation.  The maximum amount that could be obtained from entities charged with the most serious violations could not exceed, for each violation, the greater of (i) $10 million, (ii) three times the gross pecuniary gain, or (iii) the losses incurred by victims as a result of the violation.

Other Violations. The maximum penalties for individuals and entities charged with other violations would be revised as follows:

1.         The maximum penalty for an individual charged with less serious violations involving fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement (i.e., second tier violations) could not exceed, for each violation, $100,000 or the gross pecuniary gain as a result of the violation.  The maximum penalty that could be obtained from entities charged with these violations could not exceed, for each violation, $500,000 or the gross pecuniary gain as a result of the violation.

2.         The maximum penalty for an individual charged with violations not involving fraud, deceit, manipulation, or deliberate or reckless disregard of a regulatory requirement (i.e., first tier violations) could not exceed, for each violation, $10,000 or the gross pecuniary gain as a result of the violation.  The maximum penalty that could be obtained from entities charged with these violations could not exceed, for each violation, $100,000 or the gross pecuniary gain as a result of the violation.

Penalties for Recidivists. The maximum amount of the penalty for repeated misconduct shall be three times the applicable cap when the person or entity within the five years preceding the act or omission is (a) criminally convicted of securities fraud or (b) is subject to a judgment or order concerning securities fraud.

Violations of Injunctions or Bars. The bill provides authority to seek civil penalties for violations of previously imposed injunctions or bars obtained or entered under the securities laws.  It also provides that each violation of an injunction or order shall be considered a separate offense.  However, in the event of an ongoing failure to comply with an injunction or order, each day of the continued failure to comply with the injunction or order shall be considered a separate offense.