1999 Legislation
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SENATE BILL NO. 1214 – Securities broker/dealer, reports

SENATE BILL NO. 1214

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Daily Data Tracking History



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

Bill Text


S1214


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN 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 / Fiscal Impact


                      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