AN ACT CLARIFYING THE QUALIFIED PRIVILEGE FOR MANDATORY REPORTING OF EMPLOYMENT-RELATED INFORMATION BY BROKER-DEALERS; AND AMENDING SECTION 30-10-310, MCA.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 30-10-310, MCA, is amended to read:

"30-10-310. Reporting requirements. (1) A broker-dealer, investment adviser, investment adviser representative, or other person who has reason to believe fraud has occurred shall report the suspected fraud to the commissioner within 60 days of discovery of the occurrence.

(2) A broker-dealer shall make complete disclosure of all employment-related information required to be reported to the national association of securities dealers pursuant to rules and related explanatory materials of that association.

(3) A broker-dealer, investment adviser, investment adviser representative, or other person is not liable for any civil claim, including counterclaims, third-party claims, or cross-claims, related to reporting or providing information or otherwise cooperating with an investigation of fraud under this chapter unless the complainant shows by clear and convincing evidence that:

(a) the party knew at the time that the statement was made that the statement was false in any material respect; or

(b) the party acted in reckless disregard as to the statement's truth or falsity."

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I hereby certify that the within bill,

HB 0523, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 523

INTRODUCED BY J. MCKENNEY, D. EWER

AN ACT CLARIFYING THE QUALIFIED PRIVILEGE FOR MANDATORY REPORTING OF EMPLOYMENT-RELATED INFORMATION BY BROKER-DEALERS; AND AMENDING SECTION 30-10-310, MCA.