View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
S1214................................................by JUDICIARY AND RULES
SECURITIES - BROKER/DEALER - Amends existing law to provide reporting
requirements for a broker-dealer of securities regarding certain
information; and to provide qualified legal immunity for reporting
properly.
02/15 Senate intro - 1st rdg - to printing
02/16 Rpt prt - to Jud
03/02 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/04 3rd rdg - PASSED - 27-0-8
AYES--Andreason, Boatright, Branch, Bunderson, Cameron, Crow,
Danielson, Darrington, Davis, Dunklin, Frasure, Geddes, Hawkins,
Ingram, Keough, Lee, Richardson, Riggs, Risch, Sandy, Schroeder,
Sorensen, Stegner, Stennett, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Burtenshaw, Deide, Ipsen, King, McLaughlin, Noh,
Parry, Thorne
Floor Sponsor - Davis
Title apvd - to House
03/05 House intro - 1st rdg - to Jud
03/16 Rpt out - rec d/p - to 2nd rdg
03/17 2nd rdg - to 3rd rdg
03/18 3rd rdg - PASSED - 62-0-8
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Bruneel,
Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hansen(29), Henbest, Jaquet, Judd, Kellogg, Kempton, Kendell, Kunz,
Lake, Limbaugh, Linford, Loertscher, Mader, Marley, McKague,
Meyer(Duncan), Montgomery, Mortensen, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith,
Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets, Watson,
Wheeler, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Boe, Hammond, Hansen(23), Hornbeck, Jones,
Trail, Williams, Wood
Floor Sponsor - Sellman
Title apvd - to Senate
03/19 To enrol - rpt enrol - Pres signed
03/22 Sp signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 325
Effective: 07/01/99
S1214|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1214 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO SECURITIES BROKERS-DEALERS; AMENDING CHAPTER 14, TITLE 30, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 30-1438A, IDAHO CODE, TO PROVIDE 4 REPORTING REQUIREMENTS FOR A BROKER-DEALER AND TO PROVIDE QUALIFIED LEGAL 5 IMMUNITY FOR REPORTING PROPERLY. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Chapter 14, Title 30, Idaho Code, be, and the same is 8 hereby amended by the addition thereto of a NEW SECTION , to be 9 known and designated as Section 30-1438A, Idaho Code, and to read as follows: 10 30-1438A. REPORTING REQUIREMENTS -- QUALIFIED IMMUNITY. (1) A broker- 11 dealer shall make complete disclosure of all information required to be 12 reported to the national association of securities dealers (NASD) pursuant to 13 article V, sections 2 and 3 of the NASD bylaws, including information report- 14 able pursuant to NASD forms U-4 and U-5, disclosure reporting pages and 15 related explanatory materials. 16 (2) A party is not liable in any civil action, other than one brought by 17 a governmental agency, including counterclaims, third-party claims or cross- 18 claims related to an alleged untrue statement made pursuant to this section, 19 unless the complainant shows by clear and convincing evidence that: 20 (a) The party knew at the time that the statement was made that it was 21 false in any material respect; or 22 (b) The party acted in reckless disregard as to the statement's truth or 23 falsity.
STATEMENT OF PURPOSE
RS 08963
For any departing broker, the National Association of
Securities Dealers ("NASD") bylaws require brokerage firms to
file a Uniform Termination Notice for Securities Industry
Registration (also known as U-5). the U-5 details the reasons
a broker's employment is terminated. In addition to
information regarding discharged brokers, firms are required
to disclose (on NASD Form U-4) certain information relating to
customer complaints filed against a broker and internal
investigations of a broker's conduct which leads to firm
disciplinary action.
The disincentive to full disclosure created by potential
defamation claims works a disservice to the investigating
public and the securities industries. It denies the investing
public access to complete information regarding individual
brokers. It also denies brokerage firms information important
in determining whether to hire a broker.
The purposes of the proposed legislation are to strike a
balance among the rights of the investing public, brokers, and
brokerage firms by encouraging full disclosure.
FISCAL NOTE
The passage of this legislation will have no negative affect
on the state, counties or cities.
CONTACT: Morgan W. Richards, Jr.
D. A. Davidson & Company
(208) 385-5451
STATEMENT OF PURPOSE/ FISCAL NOTE
S1214