That bill was headed for passage the last night of the 2006 Legislature, Mower said. "It was like third on the House (bill list) board when time ran out; and had passed the Senate" unanimously, he noted.

The issue was ripe, said Mower, and Huntsman decided to put it on the special session call — not waiting for January's 2007 Legislature — because, "it was the right thing to do in putting our state at the cutting edge of competitiveness for small- and mid-cap companies."

Taking no chances, Byrne hired an "A" list of Utah lobbyists this year, including Frank Pignanelli (former Utah House minority leader) and Doug Foxley (adviser to several GOP governors), as well as others. Blevins also said that "Overstock met with legislators and people in the executive branch to explain the situation and how it impacts Utah."

As various members rose in special session to support the bill on the House floor, Overstock lobbyists applauded and cheered in one of the House's glass-enclosed galleries. It passed the Senate 28-0, and passed the House 65-1. Such overwhelming support was another reason to put it on the special session agenda, Mower said.

It should help Byrne, who has been waging a high-profile war with Wall Street over "naked short selling."

In a lawsuit and statements to the press, he has accused research firms and hedge funds of conspiring to profit by driving down Overstock.com's stock prices in complicated maneuvering involving "short selling."

Short sellers borrow stock in hopes that its price will decline so they can return it to brokers and pocket the difference.

Overstock.com contends it has been a target of "naked short selling," where brokers send IOUs they cannot honor through a stock clearinghouse when they run out of shares to lend.

Patrick Byrne contends some brokers never settle such trades (if prices rise), allowing short sellers to profit without needing to assume any risk. The practice tends to lower a company's stock price by artificially creating more sellers than buyers.

Small victory

The new Utah law requires brokers to quickly and regularly disclose trades that fail to settle as scheduled. Fines for violations start at $10,000 a day and can increase to cover the sum total of all unsettled trades.

Steve Judge, senior vice president of the Securities Industry Association, unsuccessfully urged Huntsman to veto the bill in a letter saying it "could substantially and adversely impact Utah and Utah based companies in the future."

SIA spokesman Travis Larson told the Morning News that while the bill supposedly targeted naked short selling, it also affects all short selling as well as other long-term investments that do not close as scheduled.