SB 1032 Creates a whistleblower program for securities violations
Sponsor: Bray
LR Number: 5282S.01I Fiscal Note: 5282-01N.ORG
Committee: Small Business, Insurance and Industry
Last Action: 3/4/2010 - Second Read and Referred S Small Business, Insurance and Industry Committee Journal Page: S524
Title: Calendar Position:
Effective Date: August 28, 2010

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Current Bill Summary


SB 1032 - This act creates a whistleblower program for individuals who voluntarily provide information that contributes to the successful resolution of an administrative or civil enforcement action for a securities violation.

The Commissioner of Securities may pay monetary awards out of the Investor Education and Protection Fund to certain whistleblowers who provide information leading to successful enforcement actions not exceeding 30% of the sanctions imposed in the enforcement action. The commissioner shall reduce the award when the whistleblower is found to have violated securities laws.

The commissioner shall inform the public of the program and may establish incentives for participating in the program.

Information delivered by the whistleblower shall be confidential unless required to be disclosed to a defendant or respondent in connection with a public proceeding instituted by the commissioner or other agency or unless the commissioner deems it necessary to protect investors.

Employers in the securities field are barred from retaliating against employee whistleblowers participating in the program.

CHRIS HOGERTY