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
 
                           B-Engrossed
 
                         House Bill 3359
                  Ordered by the Senate May 16
 Including House Amendments dated April 11 and Senate Amendments
                          dated May 16
 
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 Director of Department of Consumer and Business
Services to establish reporting requirements for
broker-dealers { + , federal covered investment advisers + } and
state investment advisers.
  Establishes clear and convincing evidence standard for
salesperson or investment adviser representative to recover
against broker-dealer { + , federal covered investment
adviser + } or state investment adviser for statements included
in reports made in conformity with rules of director. Requires
clear and convincing evidence that broker-dealer { + , federal
covered investment adviser + } or state investment adviser 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rescinded or be determined by judicial or other authority to be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, federal covered investment adviser
or state investment adviser shall report information to the
director regarding salespersons or investment adviser
representatives licensed to the broker-dealer, federal covered
investment adviser or state investment adviser. 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, federal covered investment adviser or
state investment adviser is not liable in any civil action by or
on behalf of a salesperson or an investment adviser
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 adviser
representative shows by clear and convincing evidence that:
  (a) The broker-dealer, federal covered investment adviser or
state investment adviser knew at the time the report was made
that the report contained a statement regarding the salesperson
or investment adviser representative that was false in any
material respect; or
  (b) The broker-dealer, federal covered investment adviser or
state investment adviser acted in reckless disregard as to the
statement's truth or falsity. + }
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