SENATE BILL REPORT
SB 5435
AS REPORTED BY COMMITTEE ON LABOR & COMMERCE, FEBRUARY 15, 1993
Brief Description: Extending time for limitation of actions for unlawful securities transactions to five years.
SPONSORS: Senators Fraser, Moore, Wojahn, Barr, Sutherland, Vognild and Amondson
SENATE COMMITTEE ON LABOR & COMMERCE
Majority Report: Do pass.
Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Barr, Cantu, Fraser, McAuliffe, Newhouse, Pelz, Prince, Sutherland, and Vognild.
Staff: Benson Porter (786‑7470)
Hearing Dates: February 10, 1993; February 15, 1993
BACKGROUND:
A civil action must be brought within three years for an aggrieved person to recover from a fraudulent or deceitful securities practice or a violation of certain securities registration provisions. The three-year period begins when the person discovers the violation or would have discovered the violation by the exercise of reasonable care. Similarly, the statute of limitations for a civil cause of action for fraud is three years from the time the person discovered the facts constituting a fraud.
Some interest has been expressed in extending the statute of limitations for civil actions based on violations of the securities code.
SUMMARY:
The statute of limitations is extended to five years for civil actions based on fraudulent securities practices or violations of certain securities registration provisions.
Appropriation: none
Revenue: none
Fiscal Note: none requested
TESTIMONY FOR: None
TESTIMONY AGAINST:
An extended statute of limitations will increase exposure to legitimate operators, increasing their costs of doing business.
TESTIFIED: Walt Corneille, IAFP (con)