Bill Text: AZ SB1145 | 2019 | Fifty-fourth Legislature 1st Regular | Engrossed
Bill Title: Corporation commission; securities; subpoena
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2019-05-13 - House additional Committee of the Whole action: Do Pass Amended [SB1145 Detail]
Download: Arizona-2019-SB1145-Engrossed.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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SENATE BILL 1145 |
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AN ACT
amending sections 44‑1823 and 44‑2042, Arizona Revised Statutes; relating to the Arizona corporation commission.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-1823, Arizona Revised Statutes, is amended to read:
44-1823. Power to require testimony and production of records; superior court; order of nondisclosure
A. For the purpose of investigations or hearings which that, in the opinion of the commission, are necessary and proper for the enforcement of this chapter, any member of the commission, the director or any officer or officers designated by the commission may administer oaths and affirmations, subpoena witnesses, take evidence and require by subpoena duces tecum or by citation the production of books, papers, contracts, agreements or other documents, records or information, whether filed or kept in original form or electronically stored or recorded which that the commission deems relevant or material to the inquiry. Before compliance with a subpoena, the recipient of the subpoena may do either of the following:
1. Object to, claim privilege from or move to quash the subpoena with the commission.
2. Initiate an action in superior court to object to, claim PRIVILEGE from or move to quash the subpoena.
B. The commission may issue and apply to enforce a subpoena in this state at the request of a securities agency or administrator of another state if the activities constituting an alleged violation for which the information is sought would be a violation of this chapter if the activities had occurred in this state.
C. In complying with a subpoena, the recipient of the subpoena may certify under oath that documents responsive to the subpoena are trade secrets as defined in section 44‑401. The subpoenaed party shall specifically identify to the commission the portion of the document that contains the trade secret and the reason it is a trade secret. The commission may not make public any information identified under oath as a trade secret without first redacting the information from the document or notifying the party at least fourteen days before the commission intends to make the complete document public. The party may apply to the superior court for injunctive relief on the basis that disclosure of the information will cause the party irreparable harm. If the court finds that the trade secret certification or request for injunctive relief is made in bad faith, the court may exercise its contempt powers.
C. D. In connection with the power to enforce the production of evidence by subpoena vested in the commission by article XV of the Constitution of Arizona and the commission's power to conduct private investigations pursuant to section 44‑1822, the commission has the authority to order a financial institution not to disclose the existence or content of the subpoena to persons not affiliated with the financial institution other than to the financial institution's legal counsel. The commission shall exercise such power if the commission finds it necessary or appropriate in the public interest or for the protection of investors.
Sec. 2. Section 44-2042, Arizona Revised Statutes, is amended to read:
44-2042. Confidentiality
A. The names of complainants and all information or documents obtained by any officer, employee or agent of the commission, including the shorthand reporter or stenographer transcribing the reporter's notes, in the course of any examination or investigation are confidential unless the names, information or documents are made a matter of public record. An officer, employee or agent of the commission shall not make the confidential names, information or documents available to anyone other than a member of the commission, another officer or employee of the commission, an agent who is designated by the commission or director, the attorney general or law enforcement or regulatory officials, except pursuant to any a rule of the commission or unless the commission or the director authorizes the disclosure of the names, information or documents as not contrary to the public interest.
B. The commission shall not disclose the home address, home telephone number and social security number of a salesman unless the commission or the director authorizes the disclosure of the information as not contrary to the public interest.
