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REFERENCE TITLE: corporation commission; securities; subpoena |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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SB 1145 |
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Introduced by Senator Leach
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AN ACT
amending section 44‑1823, 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. Unless otherwise ordered by a court, the commission shall keep confidential any document, record or information that the commission receives as a result of a subpoena. 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 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.