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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
corporation commission; securities; subpoena
Purpose
Requires the Arizona Corporation Commission (ACC) to keep information obtained through a subpoena relating to securities confidential and allows subpoena recipients to initiate action to halt a subpoena.
Background
The ACC was established by Article XV of the Arizona Constitution and has the authority to prescribe just and reasonable rates and charges to be collected by public service corporations. Additionally, the ACC makes rules, regulations and orders governing the business transactions of corporations (Ariz. Const. art. 15, § 3). The Securities Division of the ACC manages the securities marketplace through investigative actions and review of potential securities offerings and registers securities, securities dealers and brokers and investment advisers and their representatives.
The ACC, the Director of the Securities Division of the ACC or other agents designated by the ACC may initiate and conduct investigations to determine if any individual or corporation has violated, or is about to violate, any securities laws enforced by the ACC and may request relevant information through a subpoena during an investigation (A.R.S. §§ 44-1822 and 44-1823).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the ACC to keep documents, records and information received as a result of a subpoena relating to securities confidential, unless otherwise ordered by a court.
2. Allows the recipient of a subpoena to:
a) object to, claim privilege from or move to quash the subpoena with the ACC; or
b) initiate an action in superior court to object to, claim privilege from or move to quash the subpoena.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 29, 2019
MG/AA/gs