71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 4000
 
                           A-Engrossed
 
                         House Bill 3359
                  Ordered by the House April 11
            Including House Amendments dated April 11
 
Sponsored by Representative PATRIDGE
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Requires state agencies to make reports available on
Internet. - }  { +  Requires Director of Department of Consumer
and Business Services to establish reporting requirements for
broker-dealers and state investment advisors.
  Establishes clear and convincing evidence standard for
salesperson or investment advisor representative to recover
against broker-dealer or state investment advisor for statements
included in reports made in conformity with rules of director.
Requires clear and convincing evidence that broker-dealer or
state investment advisor knew statement in report was false or
acted in reckless disregard as to statement's truth or
falsity. + }
 
                        A BILL FOR AN ACT
Relating to public reports; amending ORS 59.370.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 59.370 is amended to read:
  59.370.  { + (1) + }   { - No provision - }   { + Provisions
 + }of the Oregon Securities Law imposing civil or criminal
liability   { - shall - }   { + do not + } apply to an act done
or omitted in good faith in conformity with a rule or order of
the Director of the Department of Consumer and Business Services,
notwithstanding that the rule or order may later be amended or
rescinded or be determined by judicial or other authority to be
invalid for any reason.
   { +  (2) A broker-dealer or state investment advisor shall
report information to the director regarding salespersons or
investment advisor representatives licensed to the broker-dealer
or state investment advisor. The director, by rule, shall
establish the reporting requirements under this subsection. In
adopting rules under this subsection, the director shall consider
and to the greatest extent practicable adopt the applicable
public reporting requirements of the National Association of
Securities Dealers, Inc., and the federal Securities and Exchange
Commission.
  (3) A broker-dealer or state investment advisor is not liable
in any civil action by or on behalf of a salesperson or an
investment advisor representative, including counterclaims,
third-party claims or cross-claims, that is related to an alleged
untrue statement made in connection with a report made under
subsection (2) of this section, unless the salesperson or
investment advisor representative shows by clear and convincing
evidence that:
  (a) The broker-dealer or state investment advisor knew at the
time the report was made that the report contained a statement
regarding the salesperson or investment advisor representative
that was false in any material respect; or
  (b) The broker-dealer or state investment advisor acted in
reckless disregard as to the statement's truth or falsity. + }
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