Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1361 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
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	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 1361 By: Hall of the Senate
7	37
8	38		and
9	39
10	40		Moore of the House
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11	42
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14	45		An Act relating to securities; amending 17 O.S. 2021,
15	46		Section 188, which relates to appl icability of
16	47		Securities title; upda ting statutory reference;
17	48		amending 18 O.S. 2021, Section 437.27, which relates
18	49		to Securities act exemption; updating stat utory
19	50		reference; amending 36 O.S. 2021, Sections 6034,
20	51		6035, and 6061, which relate to sale and trans fer of
21	52		securities and separate account s; updating statutory
22	53		references; amending 71 O.S. 2021, Sections 1-102 and
23	54		1-103, which relate to general provisions of the
24	55		Oklahoma Uniform Securities Act of 2004; modifying
25	56		definitions; updating and adding statutory
26	57		references; amending 71 O.S. 2021, Se ctions 1-201, 1-
27	58		202, 1-203, and 1-204, which relate to exemptions
28	59		from registration of securities; modifying
29	60		requirements for certain exemptions; updating
30	61		statutory references; amending 71 O.S. 2021, Sections
31	62		1-301, 1-302, 1-303, 1-304, 1-305, 1-306, 1-307, and
32	63		1-308, which relate to re gistration of securities and
33	64		notice of filing of federal covered securities;
34	65		requiring certain notice filing; specifying
35	66		requirements for certain no tice filing; updating
36	67		statutory references; amending 71 O.S. 2021, Section
37	68		1-402, 1-403, 1-404, 1-405, 1-406, 1-407, 1-408, 1-
38	69		409, 1-410, and 1-411, which relate to broker-
39	70		dealers, agents, investment advisers, investment
40	71		adviser representatives, and federa l covered
41	72		investment advisers; modifying exception to certain
42	73		exemption; modifying time period for person to
43	74		request certain hearing; updating statutory
44	75		references; amending 71 O.S. 2021, S ections 1-504, 1-
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45	103		508, 1-509, and 1-510, which relate to fraud and
46	104		liabilities; updating statutory references; amending
47		-
48		-	ENR. S. B. NO. 1361 Page 2
49	105		71 O.S. 2021, Sections 1-601, 1-604, 1-605, 1-606, 1-
50	106		607, 1-608, 1-610, and 1-612, which relate to
51	107		administration and judicial review; adding exception
52	108		to certain disclosure requirement; removing ex emption
53	109		from certain service; establishing procedures for
54	110		certain hearing requ est; providing for
55	111		confidentiality of certain records; adding fee for
56	112		certain late notice filing; updating statutory
57	113		references; amending 71 O.S. 2021, Section s 803, 807,
58	114		809, 811, 814, 824, 825, 826, and 828, which relate
59	115		to the Oklahoma Business Opportunity Sales Act;
60	116		modifying requirements for certain offers or sales;
61	117		modifying filing requirements for certain
62	118		registration; authorizing court to issue certain
63	119		orders in actions for certain violations; updating
64	120		statutory references; amending 85 O.S. 2021, Sectio n
65	121		398, which relates to group sel f-insurers; updating
66	122		statutory reference; amending 85A O.S. 2021, Section
67	123		102, which relates to workers’ compensation self-
68	124		insurance; updating statutory reference; and
69	125		providing an effective date.
70	126
71	127
72	128
73		-	SUBJECT: Updating statutory references, establishing certain
74		-	procedures, modifying certain e xemptions, and requiring certain
75		-	notice of filing concerning securities
76		-
77	129		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
78		-
79	130		SECTION 1. AMENDATORY 17 O.S. 2021, Section 188, is
80	131		amended to read as follows:
81		-
82	132		Section 188. Securities issued by public utilities, as defined
83	133		in this act, shall not be subject to any of the provisions of Title
84	134		71, O.S.1941, of the Oklahoma Statutes relating to the Oklahoma
85	135		Securities Commission.
86		-
87	136		SECTION 2. AMENDATORY 18 O.S. 2021, Section 437.27, is
88	137		amended to read as follows:
89		-
90		-
91		-	ENR. S. B. NO. 1361 Page 3
92	138		Section 437.27. The provisions of the Securities Act, Article
93	139		23 of Chapter 24, Oklahoma Statutes 1931, Oklahoma Uniform
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94	167		Securities Act of 2004, as amended, shall not apply to any note,
95	168		bond or other evidence of indebtedness issued by any cooperative or
96	169		foreign corporation transacting business in this state pursuant to
97	170		this act, to the United States of America or any agency or
98	171		instrumentality thereof, or to any mortgage or deed of trust
99	172		executed to secure the same. The provisions of said S ecurities Act
100	173		shall not apply to the issuance of member ship certificates by any
101	174		cooperative or any such foreign corporation.
102		-
103	175		SECTION 3. AMENDATORY 36 O.S. 2021, Section 6034, is
104	176		amended to read as follows:
105		-
106	177		Section 6034. After the effective date of this act, no equity
107	178		securities issued by any domestic life insurance company, under any
108	179		incentive, bonus, “stock option” or similar plan, and no rights to
109	180		acquire any such equity securities shall, within a period of two
110	181		years after the date of original allotment by the issuer thereof be
111	182		sold, or be transferred for value, or be exchanged, for a
112	183		consideration exceeding one hundred fi fteen per cent (115%) of the
113	184		net proceeds received by the issuer thereof for such securities or
114	185		rights at the time of allotment, provided, however, that the
115	186		limitations in this Section set forth sh all not be applicable to any
116	187		such securities or rights orig inally issued or allotted at a price
117	188		or value equal to the market price of such securities or rights on
118	189		the date of issue or allotment, or to any such securities or rights
119	190		allotted or issued by the issurer issuer thereof for eighty-five per
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120	218		cent (85%) or more of the price or value at which such securities or
121	219		rights were offered by such issuer to the public on the date of
122	220		allotment or issue thereof, whichever is the g reater, or to any such
123	221		securities or rights which were deposited and held in escrow for at
124	222		least two years from date of issue or allotment in compliance with a
125	223		rule promulgated or an order issued by th e Administrator, Oklahoma
126	224		Securities Commission, under the Oklahoma Securities Act, Titl e 71,
127	225		O.S.1961 Oklahoma Uniform Securi ties Act of 2004. It shall be
128	226		unlawful for any person to sell, tran sfer or exchange any such
129	227		equity securities in contravention o f this section.
130		-
131	228		SECTION 4. AMENDATORY 36 O.S. 2021, Section 60 35, is
132	229		amended to read as follows:
133		-
134		-
135		-	ENR. S. B. NO. 1361 Page 4
136	230		Section 6035. This act shall be administered a nd enforced by
137	231		the Insurance Commissioner. The term “insurer” when used in this
138	232		act means any domestic life insura nce company during the fir st two
139	233		years of its existence and the provisions hereof are applicable to
140	234		any such insurer and to any person, firm or corporation that holds,
141	235		sells or deals in equity securities or options therefor of any
142	236		domestic life insurance c ompany during the first tw o years of
143	237		existence or prior the reto. Provided, however, the provisions of
144	238		this act shall not apply after a perio d of two years subsequent to
145	239		the latest registration for public offering under the Oklahoma
146	240		Securities Act Oklahoma Uniform Securities Act of 2004. The term
147	241		“equity securities” when used herein includes options therefo r.
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148	269		This act applies to domestic life insurance companies during the
149	270		first two years of existence and to every person, firm or
150	271		corporation that holds, se lls, or deals in equity s ecurities, or
151	272		options therefor, of any domestic life insurance company during the
152	273		first two years of the existence o f a domestic life insurance
153	274		company or prior thereto or which engages in the formatio n,
154	275		organization or promotion o f a domestic life insuran ce company.
155		-
156	276		SECTION 5. AMENDATORY 36 O.S. 2021, Section 6061, is
157	277		amended to read as follows:
158		-
159	278		Section 6061. A. Any domestic life insurance company may
160	279		establish one or more separate accounts, and m ay allocate to such
161	280		separate account or accounts any amounts incl uding without
162	281		limitation proceeds applied under optional modes of settlement or
163	282		under dividend options to provide for life insurance or annuities
164	283		and benefits incidental thereto, payable in f ixed or in variable
165	284		dollar amounts, or in both, subject to the fo llowing:
166		-
167	285		1. Except as hereinafter provided, the amounts allocated to
168	286		each such account and accumulations thereon may be invested and
169	287		reinvested without r egard to any requirements or limitati ons
170	288		prescribed by the laws of th is state governing the investment s of
171	289		life insurance companies; provided, that to the extent that the
172	290		company’s reserve liability with regard to a. benefits guaranteed
173	291		as to amounts and duration, and b. funds guaranteed as to principal
174	292		amount or stated rate of interest is maintained in any separate
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175	320		account, a portion of the assets of such separate account at least
176	321		equal to such reserve liability shall be, except as the Commissioner
177	322		may otherwise approve, invested in accorda nce with the laws of this
178		-
179		-	ENR. S. B. NO. 1361 Page 5
180	323		state governing the investments of life insurance companies. The
181	324		investments in such separate account or accounts shall not be taken
182	325		into account in applying the investment limitations applica ble to
183	326		other investments of the compa ny.
184		-
185	327		2. With respect to seventy -five percent (75%) of the market
186	328		value of the total assets in a separate account no company shall
187	329		purchase or otherwise acquire the securities of any issuer, other
188	330		than securities issued or guaranteed as to principal or inte rest by
189	331		the United States, if im mediately after such purchase or acquisition
190	332		the market value of such investment, together with prior investments
191	333		of such separate account in such security taken at market value,
192	334		would exceed ten percent (10%) of the market value of the assets of
193	335		said separate account; provided, however, that the Commissioner may
194	336		waive such limitations if, in his opinion, such waiver will not
195	337		render the operation of such separate account hazardous to the
196	338		public or the policyholders in this st ate.
197		-
198	339		3. No separate account sha ll invest in the voting securitie s of
199	340		a single issuer if such investment would result in the company
200	341		owning an amount in excess of ten percent (10%) of the total issued
201	342		and outstanding voting securities of such issuer; provi ded, that the
202	343		foregoing shall not apply with respect to securitie s held in
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203	371		separate accounts, the voting rights in which are exercisable only
204	372		in accordance with instructions from persons having interest in such
205	373		accounts.
206		-
207	374		4. The limitations provided in sub sections 2. and 3. above
208	375		shall not apply to the investment with r espect to a separate account
209	376		in the securities of an investment company registered under the
210	377		Investment Company Act of 1940, provided that the investments of
211	378		such investment company comply in substance with subsections 2. a nd
212	379		3. hereof.
213		-
214	380		5. The income, if any, and gains and losses, realized or
215	381		unrealized, from assets allocated to each account shall be credited
216	382		to or charged against the account in accordance with the applicable
217	383		contract without regard to other income, gains o r losses of the
218	384		company.
219		-
220	385		6. Assets allocated to a separate account shall be valued at
221	386		their market value on the date of valuation, or if there is no
222		-
223		-	ENR. S. B. NO. 1361 Page 6
224	387		readily available market, then in acc ordance with the applicable
225	388		contract or the rules or other written ag reement applicable to such
226	389		separate account; provided, the portion of the assets of such
227	390		separate account at least equal to the company ’s reserve liability
228	391		with regard to the guaranteed b enefits and funds referred to in
229	392		subsection 1. hereof, if any, shall be valued in accordance with the
230	393		rules otherwise applicable to the company ’s assets. The reserve
231	394		liability for variable contracts shall be determined in accordance
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232	422		with actuarial procedu res that recognize the variable natur e of the
233	423		benefits provided and a ny mortality guarantees.
234		-
235	424		7. If, and to the extent, so provided under the applicable
236	425		contracts, that portion of the assets of any such separate account
237	426		equal to the reserves, and other co ntract liabilities with respect
238	427		to such account, shall not be chargea ble with liabilities arising
239	428		out of any other business the company may conduct.
240		-
241	429		8. The life insurance company shall have the power and the
242	430		company’s charter shall be deemed amended to au thorize such company
243	431		to do all things necessary under any applicable state or federal law
244	432		in order that variable contracts may be lawfully sold or offered for
245	433		sale including, without limitation, a. with respect to any separate
246	434		account registered with the Securities and Exchange Commission as a
247	435		unit investment trust exercis e voting rights in connection wit h any
248	436		securities of a regulated investment company registered under the
249	437		Investment Company Act of 1940 and held in such separate accounts in
250	438		accordance with instructions from persons having i nterests in such
251	439		accounts ratably as determined by the company, o r b. with respect
252	440		to any separate account registered with the Securities and Exchange
253	441		Commission as a management investment company, establish for such
254	442		account a committee, board, or other b ody, the members of which may
255	443		or may not be otherwise affiliated with such company and may be
256	444		elected to such membership by the vote of persons having interests
257	445		in such account ratably as determined by the company. Suc h
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258	473		committee, board or other body may have the power, exercisable alon e
259	474		or in conjunction with others, to manage such separate account and
260	475		the investment of its assets.
261		-
262	476		B. Any contract providing benefits payable in variable amounts
263	477		delivered or issued for delivery in this state shall contain a
264	478		statement of the essential fea tures of the procedure to be foll owed
265	479		by the company in determining the dollar amount of such variable
266		-
267		-	ENR. S. B. NO. 1361 Page 7
268	480		benefits. Any such contract under which the benefits vary to
269	481		reflect investment exp erience, including a group contract a nd any
270	482		certificate issued thereu nder shall state that such dollar amount
271	483		may decrease or increase and shall contain on its first page a
272	484		statement that the benefits thereunder are on a variable basis.
273		-
274	485		C. No domestic life insurance company, and no other lif e
275	486		insurance company admitted to transact business in this state, shall
276	487		be authorized to deliver within this state any variable contract
277	488		providing benefits in variable amounts until said company has
278	489		satisfied the Insuran ce Commissioner that its condition or methods
279	490		of operation in connect ion with the issuance of such con tracts will
280	491		not render its operation hazardous to the public or its
281	492		policyholders in this state. In determining the qualification of a
282	493		company requesting authority to deliver such contracts within this
283	494		state, the Insurance Commissioner shall consider, amo ng other
284	495		things:
285		-
286	496		1. The history and financial condition of the company;
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287	523
288	524		2. The character, responsibility and general fitness of the
289	525		officers and directo rs of the company; and
290		-
291	526		3. In the case of a company other than a dome stic company,
292	527		whether the statutes and regulations of the jurisdiction of its
293	528		incorporation, or state of entry in the case of an alien company,
294	529		provide a degree of protection to policyhol ders and the public which
295	530		is substantially equal to that provided by this section and the
296	531		rules and regulations issued thereunder.
297		-
298	532		An authorized life insurance company, whether domestic, foreign
299	533		or alien, which issues variable contracts and which is a subs idiary
300	534		of (or affiliated through comm on management or ownership with)
301	535		another life insurance company a uthorized to do business in this
302	536		state may be deemed to have met the provisions of this subsection if
303	537		either it or the parent or affiliated company meets the requirements
304	538		hereof.
305		-
306	539		D. The Insurance Commissioner shall have th e sole and exclusive
307	540		authority to regulate the issuance and sale of such contracts and to
308	541		issue such reasonable rules and regulations as may be necessary to
309	542		carry out the purposes and pro visions of this section; and such
310		-
311		-	ENR. S. B. NO. 1361 Page 8
312	543		contracts, the companies which issu e them and the agents or other
313	544		persons who sell them shall not be subject to the Oklahoma
314	545		Securities Act Oklahoma Uniform Securities A ct of 2004 nor to the
315	546		jurisdiction of the Oklahoma Securities Commi ssion thereunder.
316	547
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317	574		SECTION 6. AMENDATORY 71 O.S. 2021, Section 1-102, is
318	575		amended to read as follows:
319		-
320	576		Section 1-102. In this act, unless the context otherwise
321	577		requires:
322		-
323	578		1. “Administrator” means the securities Administrator appoint ed
324	579		by the Oklahoma Securities Commission;
325		-
326	580		2. “Agent” means an individual, other than a broker-dealer, who
327	581		represents a broker-dealer in effecting or attempting to effect
328	582		purchases or sales of securities or represents an issuer in
329	583		effecting or attempting t o effect purchases or sales of the issuer’s
330	584		securities. A partner, officer, or director of a broker-dealer or
331	585		issuer, or an individual having a similar status or performing
332	586		similar functions is an agent only if the individual otherwise comes
333	587		within the term. The term does not include an individual excluded
334	588		by rule adopted or order issued un der this act;
335		-
336	589		3. “Bank” means:
337		-
338	590		a. a banking institution organized under the laws of the
339	591		United States,
340		-
341	592		b. a member bank of the Federal Reserve System ,
342		-
343	593		c. any other banking institution, whether inco rporated or
344	594		not, doing business under the laws of a state or of
345	595		the United States, a substantial portion of the
346	596		business of which consists of receiving deposits or
347	597		exercising fiduciary powers similar to those permitted
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348	625		to be exercised by national banks und er the authority
349	626		of the Comptroller of the Currency pursuant to Section
350	627		1 of Public Law 87-722 (12 U.S.C. Section 92a), and
351	628		which is supervised and examined by a state or federal
352	629		agency having supervision over banks, and which is not
353	630		operated for the purpo se of evading this act , and
354		-
355		-	ENR. S. B. NO. 1361 Page 9
356		-
357	631		d. a receiver, conservator, or other liquidating agent of
358	632		any institution or firm included in subparagraph a, b
359	633		or c of this paragraph;
360		-
361	634		4. “Broker-dealer” means a person engaged in the business of
362	635		effecting transactions in secu rities for the account of others or
363	636		for the person’s own account. The term does not include:
364		-
365	637		a. an agent,
366		-
367	638		b. an issuer,
368		-
369	639		c. a bank or savings institution if its activities as a
370	640		broker-dealer are limited to those specified in
371	641		subsections 3(a)(4)(B)(i) throu gh (vi), (viii) through
372	642		(x), and (xi) if limited to unsoli cited transactions;
373	643		3(a)(5)(B); and 3(a)(5)(C) of the Securities Exchange
374	644		Act of 1934 (15 U.S.C . Sections 78c(a)(4) and (5)) or
375	645		a bank that satisfies the conditions des cribed in
376	646		subsection 3(a)(4)(E ) of the Securities Excha nge Act
377	647		of 1934 (15 U.S.C. Section 78c(a)(4)),
378		-
379	648		d. an international banking institution , or
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380	675
381	676		e. a person excluded by rule adopted or order issued
382	677		under this act;
383		-
384	678		5. “Commission” means the Oklahoma Secur ities Commission;
385		-
386	679		6. “Department” means the Oklahoma D epartment of Securities;
387		-
388	680		7. “Depository institution” means:
389		-
390	681		a. a bank, or
391		-
392	682		b. a savings institution, trust company, credit union, or
393	683		similar institution that is organized or chartered
394	684		under the laws of a state or of the United Stat es,
395	685		authorized to receive deposits, and supervised and
396	686		examined by an official or agency of a state or the
397	687		United States if its deposits or share accounts are
398		-
399		-	ENR. S. B. NO. 1361 Page 10
400	688		insured to the maximum amount authorized by statute by
401	689		the Federal Deposit Insurance Corporation, the
402	690		National Credit Unio n Share Insurance Fund, or a
403	691		successor authorized by federal law. The term does
404	692		not include:
405		-
406	693		(1) an insurance company or other organization
407	694		primarily engaged in the business of insurance ,
408		-
409	695		(2) a Morris Plan bank, or
410		-
411	696		(3) an industrial loan company that is not an insured
412	697		depository institution as defined in Section
413	698		3(c)(2) of the Federal Deposit Insurance Act (12
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	725	+
414	726		U.S.C. Section 1813(c)(2)) or any successor
415	727		federal statute;
416		-
417	728		8. “Federal covered investment adviser” means a person
418	729		registered under the Investment Advisers Act of 1940 ;
419		-
420	730		9. “Federal covered security” means a security that is, or upon
421	731		completion of a transaction will be, a covered security under
422	732		Section 18(b) of the Securities Act of 1933 (15 U.S .C. Section
423	733		77r(b)) or rules or regulations adopted pursuant to that provision ;
424		-
425	734		10. “Filing” means the receipt under this act of a record by
426	735		the Administrator or a designee of the Administrator ;
427		-
428	736		11. “Fraud,” “deceit,” and “defraud” are not limited to com mon
429	737		law deceit;
430		-
431	738		12. “Guaranteed” means guaranteed as to payment of all
432	739		principal and all interest;
433		-
434	740		13. “Institutional investor ” means any of the following,
435	741		whether acting for itself or for others in a fiduciary capacity:
436		-
437	742		a. a depository institution or in ternational banking
438	743		institution,
439		-
440	744		b. an insurance company,
441		-
442		-
443		-	ENR. S. B. NO. 1361 Page 11
444	745		c. a separate account of an in surance company,
445		-
446	746		d. an investment company as defined in the Investment
447	747		Company Act of 1940,
448		-
449	748		e. a broker-dealer registered under the Securities
450	749		Exchange Act of 1934 ,
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451	776
452	777		f. an employee pension, pr ofit-sharing, or benefit plan
453	778		if the plan has total assets in exc ess of Ten Million
454	779		Dollars ($10,000,000.00) or its investment decisions
455	780		are made by a named fiduciary, as defined in the
456	781		Employee Retirement Income Security Act of 1974 , that
457	782		is a broker-dealer registered under the Securities
458	783		Exchange Act of 1934, an inves tment adviser registered
459	784		or exempt from registration under the Investment
460	785		Advisers Act of 1940, an investment adviser registered
461	786		under this act, a depository institutio n, or an
462	787		insurance company,
463		-
464	788		g. a plan established and maintained by a state, a
465	789		political subdivision of a state, or an agency or
466	790		instrumentality of a state or a political subdivision
467	791		of a state for the benefit of its employees, if the
468	792		plan has total assets in excess of Ten Million Dollars
469	793		($10,000,000.00) or its investment decisions are made
470	794		by a duly designated public official or by a named
471	795		fiduciary, as defined in the Employee Retirement
472	796		Income Security Act of 1974, that is a broker -dealer
473	797		registered under the Securities Exchan ge Act of 1934,
474	798		an investment adviser registered or exempt from
475	799		registration under the Investment Advisers Act of
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476	827		1940, an investment adviser registered under this act,
477	828		a depository institution, or an insurance company ,
478		-
479	829		h. a trust, if it has total assets i n excess of Ten
480	830		Million Dollars ($10,000,000.00), its trustee is a
481	831		depository institution, and its participants are
482	832		exclusively plans of the types identified in
483	833		subparagraph f or g of this paragraph, regardless of
484	834		the size of their assets, except a trust t hat includes
485		-
486		-	ENR. S. B. NO. 1361 Page 12
487	835		as participants self-directed individual retirement
488	836		accounts or similar self-directed plans,
489		-
490	837		i. an organization described in Section 501(c)(3) of the
491	838		Internal Revenue Code (26 U.S.C . Section 501(c)(3)),
492	839		corporation, Massachusetts trust or simi lar business
493	840		trust, limited liability company, or partnership, no t
494	841		formed for the specific purpose of acquiring the
495	842		securities offered, with total assets in excess of Ten
496	843		Million Dollars ($10,000,000.00),
497		-
498	844		j. a small business investme nt company licensed by the
499	845		Small Business Administration under Section 301(c) of
500	846		the Small Business Investment Act of 1958 (15 U.S.C .
501	847		Section 681(c)) with total assets in excess of Ten
502	848		Million Dollars ($10,000,000.00),
503		-
504	849		k. a private business development com pany as defined in
505	850		Section 202(a)(22) of the Investment Advisers Act of
	851	+
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	877	+
506	878		1940 (15 U.S.C. Section 80b-2(a)(22)) with total
507	879		assets in excess of Ten Million Dollars
508	880		($10,000,000.00),
509		-
510	881		l. a federal covered investment adviser acting for its
511	882		own account,
512		-
513	883		m. a “qualified institutional bu yer” as defined in Rule
514	884		144A(a)(1), other than Rule 144A(a)(1) (i)(H), adopted
515	885		under the Securities Act of 1933 (17 C.F.R . 230.144A),
516		-
517	886		n. a “major U.S. institutional investor ” as defined in
518	887		Rule 15a-6(b)(4)(i) adopted under the Securit ies
519	888		Exchange Act of 1934 (17 C.F.R. 240.15a-6),
520		-
521	889		o. any other person, other than an indiv idual, of
522	890		institutional character with total assets in excess of
523	891		Ten Million Dollars ( $10,000,000.00) not organized for
524	892		the specific purpose of evading this act, or
525		-
526	893		p. any other person specif ied by rule adopted or order
527	894		issued under this act;
528		-
529		-
530		-	ENR. S. B. NO. 1361 Page 13
531	895		14. “Insurance company” means a company organized as an insurer
532	896		whose primary business is writing insurance or reinsuring risks
533	897		underwritten by insurance companies and that are sub ject to
534	898		supervision by the insurance commissioner or a similar official or
535	899		agency of a state;
536		-
537	900		15. “Insured” means insured as to payment of all principal and
538	901		all interest;
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539	928
540	929		16. “International banking institution ” means an international
541	930		financial institutio n of which the United S tates is a member and
542	931		whose securities are exempt from registrati on under the Securities
543	932		Act of 1933;
544		-
545	933		17. “Investment adviser” means a person that, for compensation,
546	934		engages in the business of advising others, either directly or
547	935		through publications or wr itings, as to the value of securities or
548	936		the advisability of inve sting in, purchasing, or selling securities
549	937		or that, for compensation and as a part of a regular business,
550	938		issues or promulgates analyses or reports concerning securiti es.
551	939		The term includes a financial planner or other person that, as an
552	940		integral component of other financially related services, provides
553	941		investment advice to others for compensation as part of a business
554	942		or that holds itself out as providing investment ad vice to others
555	943		for compensation. The term does not include:
556		-
557	944		a. an investment adviser re presentative,
558		-
559	945		b. a lawyer, accountant, engineer, or teacher whose
560	946		performance of investment advice is solely incidental
561	947		to the practice of the person ’s profession,
562		-
563	948		c. a broker-dealer or its agents whose performance of
564	949		investment advice is solely incidental to the conduct
565	950		of business as a broker -dealer and that does not
566	951		receive special compensation for the investment
567	952		advice,
568	953
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569	980		d. a publisher of a bona fide newspaper, news m agazine,
570	981		or business or financial publication of general and
571	982		regular circulation,
572		-
573		-
574		-	ENR. S. B. NO. 1361 Page 14
575	983		e. a depository bank or savings institution, or
576		-
577	984		f. any other person excluded by the Inv estment Advisers
578	985		Act of 1940 from the definition of investment adviser;
579	986		or
580		-
581	987		g. any other person excluded by rule adopt ed or order
582	988		issued under this act;
583		-
584	989		18. “Investment adviser representative” means an individual
585	990		employed by or associated w ith an investment adviser or federal
586	991		covered investment adviser and who makes any recommendations or
587	992		otherwise gives investment advic e regarding securities, m anages
588	993		accounts or portfolios of clients, determines which recommendation
589	994		or advice regarding secu rities should be given, provides investment
590	995		advice or holds herself or himself out as providing investm ent
591	996		advice, receives compensat ion to solicit, offer, or negotiate for
592	997		the sale of or for selling investment advice, or supervises
593	998		employees who perform a ny of the foregoing. The term does not
594	999		include an individual who:
595		-
596	1000		a. performs only clerical or ministe rial acts,
597		-
598	1001		b. is an agent whose performance of investme nt advice is
599	1002		solely incidental to the individual acting as an agent
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600	1030		and who does not receive speci al compensation for
601	1031		investment advisory services , or
602		-
603	1032		c. is excluded by rule adopted or order issued und er this
604	1033		act;
605		-
606	1034		19. “Issuer” means a person that issues o r proposes to issue a
607	1035		security, subject to the following:
608		-
609	1036		a. the issuer of a voting trust certific ate, collateral
610	1037		trust certificate, certificate of deposit for a
611	1038		security, or share in an investment com pany without a
612	1039		board of directors or individuals perfor ming similar
613	1040		functions is the per son performing the acts and
614	1041		assuming the duties of depositor or m anager pursuant
615	1042		to the trust or other agreement or instrument under
616	1043		which the security is issued ,
617		-
618		-	ENR. S. B. NO. 1361 Page 15
619		-
620	1044		b. the issuer of an equipment trust certificate or
621	1045		similar security serving the same purpose is the
622	1046		person by which the property or equipment is or will
623	1047		be used or to which the property or equipment is or
624	1048		will be leased or conditionally sold or that is
625	1049		otherwise contractually responsible fo r assuring
626	1050		payment of the certificate,
627		-
628	1051		c. the issuer of a fractional undivided interest in an
629	1052		oil, gas, or other mineral le ase or in payments out of
630	1053		production under a lease, right, or royalty is the
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631	1081		owner of an interest in th e lease or in payments out
632	1082		of production under a lease, right, or royalty,
633	1083		whether whole or fractional, that creates fractional
634	1084		interests for the purpose of sale;
635		-
636	1085		20. “Nonissuer transaction ” or “nonissuer distribution ” means a
637	1086		transaction or distribution not directly or indirectly for the
638	1087		benefit of the issue r;
639		-
640	1088		21. “Offer to purchase” includes an attempt or offer to obtain,
641	1089		or solicitation of an offer to sell, a security or interest in a
642	1090		security for value. The term does not include a tender offer that
643	1091		is subject to Section 14(d) of the Securities Exchange A ct of 1934
644	1092		(15 U.S.C. 78n(d));
645		-
646	1093		22. “Person” means an individual; corporation; business trust;
647	1094		estate; trust; partnership; limited liability company; association;
648	1095		joint venture; government, governmenta l subdivision, agency, or
649	1096		instrumentality; public corpo ration; or any other legal or
650	1097		commercial entity;
651		-
652	1098		23. “Place of business” of a broker-dealer, an investment
653	1099		adviser, or a federal covered investment adviser means:
654		-
655	1100		a. an office at which the broker -dealer, investment
656	1101		adviser, or federal covered investment a dviser
657	1102		regularly provides brokera ge or investment advice or
658	1103		solicits, meets with, or otherwise com municates with
659	1104		customers or clients , or
660	1105
661		-
662		-	ENR. S. B. NO. 1361 Page 16
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663	1132		b. any other location that is held out to the general
664	1133		public as a location at which the broke r-dealer,
665	1134		investment adviser, or federal covered investmen t
666	1135		adviser provides brokerage or investment advice or
667	1136		solicits, meets with, or otherwise communicates with
668	1137		customers or clients ;
669		-
670	1138		24. “Predecessor act” means the act repealed by Section 53 of
671	1139		this act;
672		-
673	1140		25. “Price amendment” means the amendment to a registr ation
674	1141		statement filed under the Securities Act of 1933 or, if an amendment
675	1142		is not filed, the prospectus or prospectus supplement filed under
676	1143		the Securities Act of 1933 that includes a statement of t he offering
677	1144		price, underwriting and selling discounts or c ommissions, amount of
678	1145		proceeds, conversion rates, call prices, an d other matters dependent
679	1146		upon the offering price ;
680		-
681	1147		26. “Principal place of business ” of a broker-dealer or an
682	1148		investment adviser mea ns the executive office o f the broker-dealer
683	1149		or investment adviser from which the officers, partners, or managers
684	1150		of the broker-dealer or investment adviser direct, control, and
685	1151		coordinate the activities of the broker -dealer or investment
686	1152		adviser;
687		-
688	1153		27. “Promoter” includes:
689		-
690	1154		a. a person who, acting alone or in conc ert with one or
691	1155		more persons, takes the entrepreneurial initiativ e in
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692	1183		founding or organizing the business or enterprise of
693	1184		an issuer,
694		-
695	1185		b. an officer or director owning s ecurities of an issuer
696	1186		or a person who owns, beneficial ly or of record, ten
697	1187		percent (10%) or more of a class of securities of the
698	1188		issuer if the officer, director, or person acquires
699	1189		any of those securities in a transaction within three
700	1190		(3) years before the filing by the issuer of a
701	1191		registration statement under this act and the
702	1192		transaction is not an arms-length transaction, or
703		-
704		-
705		-	ENR. S. B. NO. 1361 Page 17
706	1193		c. a member of the immediate f amily of a person within
707	1194		subparagraph a or b of this paragraph if the family
708	1195		member receives securities of the issuer from that
709	1196		person in a transaction within three (3) years before
710	1197		the filing by the issuer of a registration statement
711	1198		under this act and th e transaction is not an arms-
712	1199		length transaction.
713		-
714	1200		For purposes of this subsection, “immediate family” means a
715	1201		spouse of a person withi n subparagraph a or b of this paragraph, an
716	1202		emancipated child residing in such person’s household, or an
717	1203		individual claimed as a dependent by such person for tax purposes ;
718		-
719	1204		28. “Record” except in the phrases “of record,” “official
720	1205		record,” and “public record,” means information th at is inscribed on
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721	1233		a tangible medium or that is stored in an electronic or other medium
722	1234		and is retrievable in perceivable form;
723		-
724	1235		29. “Registration statement ” means the documentation provided
725	1236		to the Securities and Exchange Commissio n or the Department in
726	1237		connection with the registration of securities under the Securities
727	1238		Act of 1933 or this title and in cludes any amendment thereto and any
728	1239		report, document, exhibit or memorandum filed as part of such
729	1240		statement or incorporated therein by reference;
730		-
731	1241		30. “Sale” includes every contract of sale, contract to sell,
732	1242		or disposition of, a security or interest in a security for value,
733	1243		and “offer to sell” includes every attempt or offer to dispose of,
734	1244		or solicitation of an offer to purchase, a se curity or interest in a
735	1245		security for value. Both terms in clude:
736		-
737	1246		a. a security given or delivered with, or as a bonus on
738	1247		account of, a purchase of securities or any other
739	1248		thing constituting part of the subject of the purchase
740	1249		and having been offered and so ld for value,
741		-
742	1250		b. a gift of assessable stock involving an o ffer and
743	1251		sale, and
744		-
745	1252		c. a sale or offer of a warrant or right to pu rchase or
746	1253		subscribe to another security of the same or another
747	1254		issuer and a sale or offer of a security that gives
748		-
749		-	ENR. S. B. NO. 1361 Page 18
750	1255		the holder a present or future right or pri vilege to
751	1256		convert the security in to another security of the same
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	1265	+	7
	1266	+	8
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	1283	+
752	1284		or another issuer, including an o ffer of the other
753	1285		security;
754		-
755	1286		31. “Securities and Exchange Commission ” means the United
756	1287		States Securities and Exchange Commission ;
757		-
758	1288		32. “Security” means a note; stock; treasury stock; security
759	1289		future; bond; debenture; evidence of indebtedness; certificate o f
760	1290		interest or participation in a profit -sharing agreement; collateral
761	1291		trust certificate; preorganizatio n certificate or subscription;
762	1292		transferable share; inve stment contract; voting trust cer tificate;
763	1293		certificate of deposit for a security; fractional undiv ided interest
764	1294		in oil, gas, or other mineral rights; put, call, straddle, option,
765	1295		or privilege on a secu rity, certificate of deposit, or group or
766	1296		index of securities, including an interest the rein or based on the
767	1297		value thereof; put, call, straddle, option, or privilege entered
768	1298		into on a national securities exchange relating to foreign currency;
769	1299		or, in general, an interest or instrument c ommonly known as a
770	1300		“security”; or a certificate of interes t or participation in,
771	1301		temporary or interim certificate for, rece ipt for, guarantee of, or
772	1302		warrant or right to subscribe to or purchase, any of the foregoing.
773	1303		The term:
774		-
775	1304		a. includes both a certifica ted and an uncertificated
776	1305		security,
777		-
778	1306		b. does not include an insurance or endowment policy or
779	1307		annuity contract under which an insurance company
	1308	+
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	1310	+	BOLD FACE denotes Committee Amendments. 1
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	1317	+	8
	1318	+	9
	1319	+	10
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	1321	+	12
	1322	+	13
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	1324	+	15
	1325	+	16
	1326	+	17
	1327	+	18
	1328	+	19
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	1330	+	21
	1331	+	22
	1332	+	23
	1333	+	24
	1334	+
780	1335		promises to pay a sum of money either in a lump sum or
781	1336		periodically for life or othe r specified period,
782		-
783	1337		c. does not include an interest in a contributory or
784	1338		noncontributory pension or welfare plan subject to the
785	1339		Employee Retirement Incom e Security Act of 1974,
786		-
787	1340		d. includes as an “investment contract” an investment in
788	1341		a common enterprise wi th the expectation of profits to
789	1342		be derived primarily f rom the efforts of a person
790	1343		other than the investor and a “common enterprise”
791	1344		means an enterprise in which the fortunes of the
792		-
793		-	ENR. S. B. NO. 1361 Page 19
794	1345		investor are interwoven with those of either the
795	1346		person offering the inves tment, a third party, or
796	1347		other investors,
797		-
798	1348		e. includes as an “investment contract, ” among other
799	1349		contracts, an interest in a limited partnership and a
800	1350		third party managed limited liability company and an
801	1351		investment in a viatical or life settlement or similar
802	1352		contract or agreement ,
803		-
804	1353		f. includes an investment of mo ney or money’s worth
805	1354		including goods furnished or services performed in the
806	1355		risk capital of a vent ure with the expectation of some
807	1356		benefit to the investor where the investor has no
808	1357		direct control over the investment or policy decis ion
809	1358		of the venture, and
	1359	+
	1360	+	SB1361 HFLR Page 27
	1361	+	BOLD FACE denotes Committee Amendments. 1
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810	1385
811	1386		g. does not include an interest in an oil, gas or mineral
812	1387		lease as part of a transaction between pa rties, each
813	1388		of whom is engaged in the business of exploring for or
814	1389		producing oil and gas or other valua ble minerals as an
815	1390		ongoing business or the execution of oil and gas
816	1391		leases by land, mine ral and royalty owners in favor of
817	1392		a party or parties engaged in the business of
818	1393		exploring for or producing oil and gas or other
819	1394		valuable minerals;
820		-
821	1395		33. “Self-regulatory organization” means a national securities
822	1396		exchange registered under the Securities Exc hange Act of 1934, a
823	1397		national securities association of broker -dealers registered under
824	1398		the Securities Exchange Act of 1934, a clearing agency registered
825	1399		under the Securities Exchange Act of 1934, o r the Municipal
826	1400		Securities Rulemaking Board established un der the Securities
827	1401		Exchange Act of 1934 ;
828		-
829	1402		34. “Sign” means, with present intent to authenticate or adopt
830	1403		a record:
831		-
832	1404		a. to execute or adopt a tangible symbol , or
833		-
834	1405		b. to attach or logically associate wi th the record an
835	1406		electronic symbol, sound, or process ;
836		-
837		-	ENR. S. B. NO. 1361 Page 20
838		-
839	1407		35. “State” means a state of the United States, the District of
840	1408		Columbia, Puerto Rico, the United States Virgin Islands, or any
	1409	+
	1410	+	SB1361 HFLR Page 28
	1411	+	BOLD FACE denotes Committee Amendments. 1
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	1417	+	7
	1418	+	8
	1419	+	9
	1420	+	10
	1421	+	11
	1422	+	12
	1423	+	13
	1424	+	14
	1425	+	15
	1426	+	16
	1427	+	17
	1428	+	18
	1429	+	19
	1430	+	20
	1431	+	21
	1432	+	22
	1433	+	23
	1434	+	24
	1435	+
841	1436		territory or insular possession subject to the jurisdiction of the
842	1437		United States; and
843		-
844	1438		36. “Underwriter” means any person who has purchased from an
845	1439		issuer or from any other person with a view to, or offers or sells
846	1440		for an issuer or for any other person in connection with, the
847	1441		distribution of any s ecurity, or participates or ha s a direct or
848	1442		indirect participation in any such undertaki ng, or participates or
849	1443		has a participation in the direct or indir ect underwriting of any
850	1444		such undertaking. “Underwriter” does not include a person whose
851	1445		interest is limited to a commission from an underwriter or broker -
852	1446		dealer not in excess of the usual an d customary distributor’s or
853	1447		seller’s commission.
854		-
855	1448		SECTION 7. AMENDATORY 71 O.S. 2021, Section 1 -103, is
856	1449		amended to read as follows:
857		-
858	1450		Section 1-103. “Securities Act of 1933 ” (15 U.S.C. Section 77a
859	1451		et seq.), “Securities Exchange Act of 1934” (15 U.S.C. Section 78a
860	1452		et seq.), “Public Utility Holding Company Act of 1935 ”(15 U.S.C.
861	1453		Section 79 et seq.) “Public Utility Holding Company Act of 2005 ” (42
862	1454		U.S.C. Section 16451 et seq.) , “Investment Company Act of 1940” (15
863	1455		U.S.C. Section 80a-1 et seq.), “Investment Advisers Act of 1940 ” (15
864	1456		U.S.C. Section 80b-1 et seq.), “Employee Retirement Income Security
865	1457		Act of 1974” (29 U.S.C. Section 1001 et seq.), “National Housing
866	1458		Act” (12 U.S.C. Section 1701 et seq.), “Commodity Exchange Act” (7
867	1459		U.S.C. Section 1 et seq.), “Internal Revenue Code ” (26 U.S.C.
	1460	+
	1461	+	SB1361 HFLR Page 29
	1462	+	BOLD FACE denotes Committee Amendments. 1
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	1485	+	24
	1486	+
868	1487		Section 1 et seq.), “Securities Investor Protection Act of 1970 ” (15
869	1488		U.S.C. Section 78aaa et seq.), “Securities Litigation Uniform
870	1489		Standards Act of 1998” (112 Stat. 3227), “Small Business Investment
871	1490		Act of 1958” (15 U.S.C. Section 661 et seq.), “Family Educational
872	1491		Rights and Privacy Act ” (20 U.S.C. Section 1232g), and “Electronic
873	1492		Signatures in Global and National C ommerce Act” (15 U.S.C. Section
874	1493		7001 et seq.) mean those s tatutes and the rules and regulat ions
875	1494		adopted under those statutes, as in effect on the date of enactment
876	1495		of this act, or as later amended.
877		-
878	1496		SECTION 8. AMENDATORY 71 O.S. 2021, Section 1-201, is
879	1497		amended to read as follows:
880		-
881		-	ENR. S. B. NO. 1361 Page 21
882		-
883	1498		Section 1-201. The following securities are exempt from the
884	1499		requirements of Sections 10 1-301 and 32 1-504 of this act title:
885		-
886	1500		1. A security, including a revenue obligation or a separate
887	1501		security as defined i n Rule 131 (17 C.F.R . 230.131) adopted under
888	1502		the Securities Act of 1933, issued, insured , or guaranteed by the
889	1503		United States; by a state; by a political subdivision of a state; by
890	1504		a public authority, agency, or instrumentality of one or more
891	1505		states; by a political subdivision of one or more states; or by a
892	1506		person controlled or supervised by a nd acting as an instrumentality
893	1507		of the United States under authority granted by the Congress; or a
894	1508		certificate of deposit for any of the foregoing; however,
895	1509		notwithstanding the provisions of Section 106(c) of the Secondary
896	1510		Mortgage Market Enhancement Act o f 1984, Public Law 98-440, any
	1511	+
	1512	+	SB1361 HFLR Page 30
	1513	+	BOLD FACE denotes Committee Amendments. 1
	1514	+	2
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	1518	+	6
	1519	+	7
	1520	+	8
	1521	+	9
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	1523	+	11
	1524	+	12
	1525	+	13
	1526	+	14
	1527	+	15
	1528	+	16
	1529	+	17
	1530	+	18
	1531	+	19
	1532	+	20
	1533	+	21
	1534	+	22
	1535	+	23
	1536	+	24
	1537	+
897	1538		security that is offered and sold pursuant to Section 4(5) of the
898	1539		Securities Act of 1933 or that is a mortgage related security as
899	1540		that term is defined in Section 3(a) (41) of the Securities Exchange
900	1541		Act of 1934 shall not be exempt from Sections 10 1-301 and 32 1-504
901	1542		of this act title by virtue of such Secondary Mortgage Market
902	1543		Enhancement Act but may be exempt based upon the availability of the
903	1544		exemptions from registrat ion provided for in this section;
904		-
905	1545		2. A security issued, insured, or guaranteed by a foreign
906	1546		government with which the United States maintains diplomatic
907	1547		relations, or any of its political subdivisions, if the security is
908	1548		recognized as a valid obligation b y the issuer, insurer, or
909	1549		guarantor;
910		-
911	1550		3. A security issued by and representing or that will represent
912	1551		an interest in or a direct obligation of, or be guaranteed by:
913		-
914	1552		a. an international banking institution ,
915		-
916	1553		b. a banking institution organized under the laws of the
917	1554		United States; a member bank of the Federal Reserve
918	1555		System; or a depository institution a substantial
919	1556		portion of the business of which consists or will
920	1557		consist of receiving deposits or share accounts that
921	1558		are insured to the maximum amount authorized by
922	1559		statute by the Federa l Deposit Insurance Corporation,
923	1560		the National Credit Union Share Insurance Fund, or a
924		-
925		-	ENR. S. B. NO. 1361 Page 22
926	1561		successor authorized by federal law or exercising
	1562	+
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	1588	+
927	1589		fiduciary powers that are similar to those permitted
928	1590		for national banks under the authority of the
929	1591		Comptroller of the Currency pursuant to Section 1 of
930	1592		Public Law 87-722 (12 U.S.C. Section 92a),
931		-
932	1593		c. a trust company or other institution that is
933	1594		authorized by federal or state law to exercise
934	1595		fiduciary powers of the type a national bank is
935	1596		permitted to exercise under the author ity of the
936	1597		Comptroller of the Currency and is supervised and
937	1598		examined by an official or agency of a state or the
938	1599		United States, or
939		-
940	1600		d. any other depository institution , unless by rule or
941	1601		order issued by the Administrator pursuant to Section
942	1602		1-204 of this title;
943		-
944	1603		4. A security issued by and representing an interest in, or a
945	1604		debt of, or insured or guaranteed by, an insurance company
946	1605		authorized to transact insurance business in this state by the
947	1606		Insurance Commissioner;
948		-
949	1607		5. A security issued or guaranteed by a r ailroad, other common
950	1608		carrier, public utility, or public utility holding company that is:
951		-
952	1609		a. regulated in respect to its rates and charges by the
953	1610		United States or a state ,
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	1626	+	14
	1627	+	15
	1628	+	16
	1629	+	17
	1630	+	18
	1631	+	19
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	1633	+	21
	1634	+	22
	1635	+	23
	1636	+	24
954	1637
955	1638		b. regulated in respect to the issuance or guarantee of
956	1639		the security by the United S tates, a state, Canada, or
957	1640		a Canadian province or territory, or
958		-
959	1641		c. a public utility holding company registere d under the
960	1642		Public Utility Holding Company Act of 1935 2005 or a
961	1643		subsidiary of such a registered holding company within
962	1644		the meaning of that act;
963		-
964	1645		6. A federal covered security spec ified in Section 18(b)(1) of
965	1646		the Securities Act of 1933 (15 U.S.C . Section 77r(b)(1)) or by rule
966	1647		adopted under that provision or a security listed or approved for
967	1648		listing on another securities marke t specified by rule under this
968		-
969		-	ENR. S. B. NO. 1361 Page 23
970	1649		act; a put or a call option contract, a warrant, or a subscription
971	1650		right on or with respect to such sec urities; or an option or similar
972	1651		derivative security on a security or an index of secu rities or
973	1652		foreign currencies issued by a clearing agency regi stered under the
974	1653		Securities Exchange Act of 1934 and listed or designated for trading
975	1654		on a national securitie s exchange, a facility of a national
976	1655		securities exchange, or a facility of a national securities
977	1656		association registered un der the Securities Exchange Act of 1934 or
978	1657		the underlying security in connection with the offer, sale, or
979	1658		exercise of an option or oth er derivative security that was exempt
980	1659		when the option or other derivative security wa s written or issued;
981	1660		or an option or other derivative security designated by the
	1661	+
	1662	+	SB1361 HFLR Page 33
	1663	+	BOLD FACE denotes Committee Amendments. 1
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	1687	+
982	1688		Securities and Exchange Commission under Section 9(b) of the
983	1689		Securities Exchange Act of 1 934 (15 U.S.C. Section 78i(b));
984		-
985	1690		7. A security issued by a person organized and operat ed
986	1691		exclusively for religious, educat ional, benevolent, frater nal,
987	1692		charitable, social, athletic , or reformatory purposes, or as a
988	1693		chamber of commerce, and not for pecuniar y profit, no part of the
989	1694		net earnings of which inures to the benefit of a private stoc kholder
990	1695		or other person, or a securi ty of a company that is e xcluded from
991	1696		the definition of an investment company under Section 3(c)(10)(B) of
992	1697		the Investment Company Act of 1940 (15 U.S.C. Section 80a-
993	1698		3(c)(10)(B)); except that with respect to the offer or sale of a
994	1699		note, bond, debenture, or other evidence of indebte dness issued by
995	1700		such a person, a rule may be adopted under this act limiting the
996	1701		availability of this exempti on by classifying securities, persons,
997	1702		and transactions, imposing different requiremen ts for different
998	1703		classes, specifying with respect to subparag raph b of this paragraph
999	1704		the scope of the exemption, the requirement of an offering
1000	1705		statement, the filing of sales and advertising literature, the
1001	1706		filing of consent to service of process complyin g with Section 49 of
1002	1707		this act, and the grounds for denial or suspension, and requiring an
1003	1708		issuer:
1004		-
1005	1709		a. to file a notice specifying the material terms of the
1006	1710		proposed offer or sale and copies of any proposed
1007	1711		sales and advertising literature to be used and
	1712	+
	1713	+	SB1361 HFLR Page 34
	1714	+	BOLD FACE denotes Committee Amendments. 1
	1715	+	2
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	1738	+
1008	1739		providing that the exemption becomes ef fective if the
1009	1740		Administrator does not disallow the exempti on within
1010	1741		the period established by the rule ,
1011		-
1012		-
1013		-	ENR. S. B. NO. 1361 Page 24
1014	1742		b. to file a request for exemp tion authorization for
1015	1743		which a rule under this title may specify the scope of
1016	1744		the exemption, the requirement of an offering
1017	1745		statement, the filing o f sales and advertising
1018	1746		literature, the filing of consent to service of
1019	1747		process in compliance with Section 1 -611 of this
1020	1748		title, and grounds for denial or suspe nsion of the
1021	1749		exemption, or
1022		-
1023	1750		c. to register under Section 13 1-304 of this act title;
1024		-
1025	1751		8. A member’s or owner’s interest in, or a retention
1026	1752		certificate or like security given in lieu of a cash patronage
1027	1753		dividend issued by, a cooperative organized and operated as a not
1028	1754		for profit membership co operative under the cooperative laws of a
1029	1755		state, but not a mem ber’s or owner’s interest, retention
1030	1756		certificate, or like security sold to persons other than bona fide
1031	1757		members of the cooperative; and
1032		-
1033	1758		9. An equipment trust certificate with respect to equipme nt
1034	1759		leased or conditionally sold to a person, if any security i ssued by
1035	1760		the person would be exempt under this section or would be a federal
1036	1761		covered security under Section 1 8(b)(1) of the Securities Act of
1037	1762		1933 (15 U.S.C. Section 77r(b)(1)).
1038	1763
	1764	+	SB1361 HFLR Page 35
	1765	+	BOLD FACE denotes Committee Amendments. 1
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	1789	+
1039	1790		SECTION 9. AMENDATORY 71 O.S. 2021, Section 1-202, is
1040	1791		amended to read as follows:
1041		-
1042	1792		Section 1-202. The following transactions are exempt from the
1043	1793		requirements of Sections 1 -301 and 1-504 of the Oklahoma Uniform
1044	1794		Securities Act of 2004 this title:
1045		-
1046	1795		1. An isolated nonissuer transaction, whether or not effected
1047	1796		by or through a broker-dealer;
1048		-
1049	1797		2. A nonissuer transaction by or through a broker -dealer
1050	1798		registered, or exempt from registration under the Oklahoma Uniform
1051	1799		Securities Act of 2004, and a resale tr ansaction by a sponsor of a
1052	1800		unit investment trust registered under the Investment Company Act of
1053	1801		1940, in a security of a class that has been outstanding in the
1054	1802		hands of the public for at least ninety (90) days, if, at the date
1055	1803		of the transaction:
1056		-
1057		-	ENR. S. B. NO. 1361 Page 25
1058		-
1059	1804		a. the issuer of the security is engaged in business, the
1060	1805		issuer is not in the organizational stage or in
1061	1806		bankruptcy or receivership, and the issuer is not a
1062	1807		blank check, blind pool, or shell company that has no
1063	1808		specific business plan or purpose or has indicated
1064	1809		that its primary business plan is to engage in a
1065	1810		merger or combination of the business with, or an
1066	1811		acquisition of, an unidentified person,
1067		-
1068	1812		b. the security is sold at a price reasonably related to
1069	1813		its current market price,
	1814	+
	1815	+	SB1361 HFLR Page 36
	1816	+	BOLD FACE denotes Committee Amendments. 1
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1070	1840
1071	1841		c. the security does not constitute the whole or part of
1072	1842		an unsold allotment to, or a subscripti on or
1073	1843		participation by, the broker-dealer as an underwriter
1074	1844		of the security or a redistribution, and
1075		-
1076	1845		d. a nationally recognized securities manual or its
1077	1846		electronic equivalent designated by rule a dopted or
1078	1847		order issued under this ac t or a record filed with the
1079	1848		Securities and Exchange Commission that is publicly
1080	1849		available contains:
1081		-
1082	1850		(1) a description of the business and operations of
1083	1851		the issuer,
1084		-
1085	1852		(2) the names of the issuer ’s executive officers and
1086	1853		the names of the issuer’s directors, if any,
1087		-
1088	1854		(3) an audited balance sheet of the issuer as of a
1089	1855		date within eighteen (18) months before the date
1090	1856		of the transaction or, in the case of a
1091	1857		reorganization or merger when the parties to the
1092	1858		reorganization or merger each had an audited
1093	1859		balance sheet, a pro forma balance sheet for the
1094	1860		combined organization, and
1095		-
1096	1861		(4) an audited income statement for each of the
1097	1862		issuer’s two (2) immediately previous fiscal
1098	1863		years or for the period of existence of the
1099	1864		issuer, whichever is s horter, or, in the case of
1100	1865
1101		-	ENR. S. B. NO. 1361 Page 26
	1866	+	SB1361 HFLR Page 37
	1867	+	BOLD FACE denotes Committee Amendments. 1
	1868	+	2
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	1891	+
1102	1892		a reorganization or merger when ea ch party to the
1103	1893		reorganization or merger had audited income
1104	1894		statements, a pro forma income statement, or
1105		-
1106	1895		e. the issuer of the security has a class of equity
1107	1896		securities listed on a national securi ties exchange
1108	1897		registered under the S ecurities Exchange Act of 1934
1109	1898		or designated for trading on the National Association
1110	1899		of Securities Dealers Automated Quotation System,
1111	1900		unless the issuer of the security is a unit investment
1112	1901		trust registered under the Inv estment Company Act of
1113	1902		1940; or the issuer of the security, i ncluding its
1114	1903		predecessors, has been engaged in continuous business
1115	1904		for at least three (3) years; or the issuer of the
1116	1905		security has total assets of at least Two Million
1117	1906		Dollars ($2,000,000.00) bas ed on an audited balance
1118	1907		sheet as of a date within eighteen ( 18) months before
1119	1908		the date of the transaction or, in the case of a
1120	1909		reorganization or merger when the parties to the
1121	1910		reorganization or merger each had the audited balance
1122	1911		sheet, a pro forma balanc e sheet for the combined
1123	1912		organization;
1124		-
1125	1913		3. A nonissuer transa ction by or through a broker-dealer
1126	1914		registered or exempt from registration under this act in a security
1127	1915		of a foreign issuer that is a margin security defined in regulations
	1916	+
	1917	+	SB1361 HFLR Page 38
	1918	+	BOLD FACE denotes Committee Amendments. 1
	1919	+	2
	1920	+	3
	1921	+	4
	1922	+	5
	1923	+	6
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	1928	+	11
	1929	+	12
	1930	+	13
	1931	+	14
	1932	+	15
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	1936	+	19
	1937	+	20
	1938	+	21
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	1940	+	23
	1941	+	24
	1942	+
1128	1943		or rules adopted by th e Board of Governors of the Federal Reserve
1129	1944		System;
1130		-
1131	1945		4. A nonissuer transaction by or through a broker-dealer
1132	1946		registered or exempt from registration under the Oklahoma Uniform
1133	1947		Securities Act of 2004 in an outstanding security if the guarantor
1134	1948		of the security files reports with the Securities and Exchange
1135	1949		Commission under the reporting requirements of Section 13 or 15(d)
1136	1950		of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d));
1137		-
1138	1951		5. A nonissuer transaction by or through a broker -dealer
1139	1952		registered or exempt from registration under the Ok lahoma Uniform
1140	1953		Securities Act of 2004 in a security that:
1141		-
1142		-
1143		-	ENR. S. B. NO. 1361 Page 27
1144	1954		a. is rated at the time of the transaction by a
1145	1955		nationally recognized statistical rating organization
1146	1956		in one of its four highest rating categories, or
1147		-
1148	1957		b. has a fixed maturity or a fixed interest or dividend,
1149	1958		if:
1150		-
1151	1959		(1) a default has not occurred during the current
1152	1960		fiscal year or within the three (3) previous
1153	1961		fiscal years or during the existence of the
1154	1962		issuer and any predecessor if less than three (3)
1155	1963		fiscal years, in the payment of principal,
1156	1964		interest, or dividends on the secur ity, and
1157		-
1158	1965		(2) the issuer is engaged in business, is not in the
1159	1966		organizational stage or in bankruptcy or
	1967	+
	1968	+	SB1361 HFLR Page 39
	1969	+	BOLD FACE denotes Committee Amendments. 1
	1970	+	2
	1971	+	3
	1972	+	4
	1973	+	5
	1974	+	6
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	1978	+	10
	1979	+	11
	1980	+	12
	1981	+	13
	1982	+	14
	1983	+	15
	1984	+	16
	1985	+	17
	1986	+	18
	1987	+	19
	1988	+	20
	1989	+	21
	1990	+	22
	1991	+	23
	1992	+	24
	1993	+
1160	1994		receivership, and is not and has not been within
1161	1995		the previous twelve (12) months a blank che ck,
1162	1996		blind pool, or shell company tha t has no specific
1163	1997		business plan or purpose or has indicated that
1164	1998		its primary business plan is to engage in a
1165	1999		merger or combination of the business with, or an
1166	2000		acquisition of, an unidentified person;
1167		-
1168	2001		6. A nonissuer trans action by or through a broker -dealer
1169	2002		registered or exempt fro m registration under the Oklahoma Uniform
1170	2003		Securities Act of 2004 effecting an unsolicited order or offer to
1171	2004		purchase;
1172		-
1173	2005		7. A nonissuer transaction executed by a bona fide pledgee
1174	2006		without the purpose of evading the Oklahoma Uniform S ecurities Act
1175	2007		of 2004;
1176		-
1177	2008		8. A nonissuer transaction by a federal covered investment
1178	2009		adviser with investments under management in excess of One Hundred
1179	2010		Million Dollars ($100,000,000.00) acting in the exercise of
1180	2011		discretionary authority in a signed record for the account of
1181	2012		others;
1182		-
1183	2013		9. A transaction in a security, whether or not the security or
1184	2014		transaction is otherwise exempt, in exchange for one or more bona
1185	2015		fide outstanding securities, claims, or property interests, or
1186		-
1187		-	ENR. S. B. NO. 1361 Page 28
1188	2016		partly in such exchange and partly for cash, if the terms and
1189	2017		conditions of the issuance and exchange or the delivery and exchange
	2018	+
	2019	+	SB1361 HFLR Page 40
	2020	+	BOLD FACE denotes Committee Amendments. 1
	2021	+	2
	2022	+	3
	2023	+	4
	2024	+	5
	2025	+	6
	2026	+	7
	2027	+	8
	2028	+	9
	2029	+	10
	2030	+	11
	2031	+	12
	2032	+	13
	2033	+	14
	2034	+	15
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	2036	+	17
	2037	+	18
	2038	+	19
	2039	+	20
	2040	+	21
	2041	+	22
	2042	+	23
	2043	+	24
	2044	+
1190	2045		and the fairness of the terms and conditions have been approved by
1191	2046		the Administrator after a hearing;
1192		-
1193	2047		10. A transaction between the issuer or other person on whose
1194	2048		behalf the offering is m ade and an underwriter, or among
1195	2049		underwriters;
1196		-
1197	2050		11. A transaction in a note, bond, debenture, or other evidence
1198	2051		of indebtedness secured by a mortgage or other security agreement
1199	2052		if:
1200		-
1201	2053		a. the note, bond, debenture, or other evidence o f
1202	2054		indebtedness is offered and sold with the mortgage or
1203	2055		other security agreement as a unit,
1204		-
1205	2056		b. a general solicitation or general advertisement of the
1206	2057		transaction is not made, and
1207		-
1208	2058		c. a commission or other remuneration is not paid or
1209	2059		given, directly or indir ectly, to a person not
1210	2060		registered under the Oklahoma Uniform Securities Act
1211	2061		of 2004 as a broker-dealer or as an agent;
1212		-
1213	2062		12. A transaction by an executor, administrator of an estate,
1214	2063		sheriff, marshal, receiver, trustee in bankruptcy, guardian, or
1215	2064		conservator;
1216		-
1217	2065		13. A sale or offer t o sell to:
1218		-
1219	2066		a. an institutional investor,
1220		-
1221	2067		b. a federal covered investment adviser, or
	2068	+
	2069	+	SB1361 HFLR Page 41
	2070	+	BOLD FACE denotes Committee Amendments. 1
	2071	+	2
	2072	+	3
	2073	+	4
	2074	+	5
	2075	+	6
	2076	+	7
	2077	+	8
	2078	+	9
	2079	+	10
	2080	+	11
	2081	+	12
	2082	+	13
	2083	+	14
	2084	+	15
	2085	+	16
	2086	+	17
	2087	+	18
	2088	+	19
	2089	+	20
	2090	+	21
	2091	+	22
	2092	+	23
	2093	+	24
1222	2094
1223	2095		c. any other person exempted by rule adopted or order
1224	2096		issued under the Oklahoma Uniform Securities Act of
1225	2097		2004;
1226		-
1227	2098		14. A sale or an offer to sell se curities by an issuer, if the
1228	2099		transaction is part of a single issue in which:
1229		-
1230		-
1231		-	ENR. S. B. NO. 1361 Page 29
1232	2100		a. not more than twenty -five purchasers during any twelve
1233	2101		(12) consecutive months, other than those designated
1234	2102		in paragraph 13 of this section ,
1235		-
1236	2103		b. a general solicitation or gener al advertising is not
1237	2104		made in connection with the offer to sell or sale of
1238	2105		the securities,
1239		-
1240	2106		c. a commission or other remuneration is not paid or
1241	2107		given, directly or indirectly, to a person other than
1242	2108		a broker-dealer registered under the Oklahoma Uniform
1243	2109		Securities Act of 2004 or an agent registered under
1244	2110		the Oklahoma Uniform Securities Act of 2004 for
1245	2111		soliciting a prospective purchaser in this state, and
1246		-
1247	2112		d. the issuer reasonably believes that all the purchasers
1248	2113		in this state, other than those designated in
1249	2114		paragraph 13 of this sectio n, are purchasing for
1250	2115		investment;
1251		-
1252	2116		15. A transaction under an offer to existing security holders
1253	2117		of the issuer, including persons that at the date of the transaction
1254	2118		are holders of convertible se curities, options, or warrants, if:
	2119	+
	2120	+	SB1361 HFLR Page 42
	2121	+	BOLD FACE denotes Committee Amendments. 1
	2122	+	2
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	2138	+	18
	2139	+	19
	2140	+	20
	2141	+	21
	2142	+	22
	2143	+	23
	2144	+	24
1255	2145
1256	2146		a. no commission or other remuneration, other than a
1257	2147		standby commission, is paid or given, directly or
1258	2148		indirectly, for soliciting a security holder in this
1259	2149		state, or
1260		-
1261	2150		b. the issuer first files a notice specifying the term s
1262	2151		of the offer and the Administrator , by order, does not
1263	2152		disallow the exemption within the next ten (10) full
1264	2153		business days;
1265		-
1266	2154		16. A sale from or in this state to not more than thirty -two
1267	2155		persons of a unit consisting of interests in oil, gas or mining
1268	2156		titles or leases or any certificate of in terest or participation, or
1269	2157		conveyance in any form of an interest therein, or in payments out of
1270	2158		production pursuant to such titles or leases, whether or not offered
1271	2159		in conjunction with, or as an incident to, an operatin g agreement or
1272	2160		other contract to dri ll oil or gas wells or ot herwise exploit the
1273		-
1274		-	ENR. S. B. NO. 1361 Page 30
1275	2161		minerals on the particular leases, whether or not the seller or any
1276	2162		buyers are then present in this state, if:
1277		-
1278	2163		a. the seller reasonably believes that all buyers are
1279	2164		purchasing for investment,
1280		-
1281	2165		b. no commission is paid or given directly o r indirectly
1282	2166		for the solicitation of any such sale excluding any
1283	2167		commission paid or given by and between parties each
1284	2168		of whom is engaged in the business of exploring for or
1285	2169		producing oil and gas or other valuable minerals,
1286	2170
	2171	+	SB1361 HFLR Page 43
	2172	+	BOLD FACE denotes Committee Amendments. 1
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	2193	+	22
	2194	+	23
	2195	+	24
	2196	+
1287	2197		c. no public advertising or publi c solicitation is used
1288	2198		in any such solicitation or sale, and
1289		-
1290	2199		d. sales are effected only to persons the seller has
1291	2200		reasonable cause to believe are capable of evaluating
1292	2201		the risk of the prospective investment and able to
1293	2202		bear the economic risk of the investm ent; but the
1294	2203		Administrator, by rule or order, as to any specific
1295	2204		transaction, may withdraw or further condition this
1296	2205		exemption or decrease the number of sales permitted or
1297	2206		waive the conditions in subparagraphs a, b and c of
1298	2207		this paragraph, with or without substitution of a
1299	2208		limitation on remuneration.
1300		-
1301	2209		For purposes of this subsection, no units of the issuer shall be
1302	2210		integrated; however, this exemption cannot be combined or used in
1303	2211		conjunction with any other transactional exemption.
1304		-
1305	2212		17. An offer to sell, but not a sale, of a security not exempt
1306	2213		from registration under the Securities Act of 1933 if:
1307		-
1308	2214		a. a registration or offering statement or similar record
1309	2215		as required under the Securities Act of 1933 has been
1310	2216		filed, but is not effective , or the offer is made in
1311	2217		compliance with Rule 165 adopted under the Securities
1312	2218		Act of 1933 (17 C.F.R. 230.165), and
1313		-
1314	2219		b. no stop order of which the offeror is aware has been
1315	2220		issued against the offeror by the Administrator or the
	2221	+
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	2223	+	BOLD FACE denotes Committee Amendments. 1
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	2247	+
1316	2248		Securities and Exchange Comm ission, and an audit,
1317		-
1318		-	ENR. S. B. NO. 1361 Page 31
1319	2249		inspection, or proceeding that is public and that may
1320	2250		culminate in a stop order is not known by the offeror
1321	2251		to be pending;
1322		-
1323	2252		18. An offer to sell, but not a sale, of a security exempt from
1324	2253		registration under the Securities Act of 1933 if:
1325		-
1326	2254		a. a registration statement has been filed under this
1327	2255		act, but is not effective,
1328		-
1329	2256		b. a solicitation of interest is provided in a record to
1330	2257		offerees in compliance with a rule adopted by the
1331	2258		Administrator under the Okla homa Uniform Securities
1332	2259		Act of 2004, and
1333		-
1334	2260		c. a stop order of which the offeror is aware has not
1335	2261		been issued by the Administrator under the Oklahoma
1336	2262		Uniform Securities Act of 2004 and an audit,
1337	2263		inspection, or proceeding that may culminate in a stop
1338	2264		order is not known by the offeror to be pendi ng;
1339		-
1340	2265		19. A transaction in volving the distribution of the securities
1341	2266		of an issuer to the security holders of another person in connection
1342	2267		with a merger, consolidation, exchange of securities, sale of
1343	2268		assets, or other reor ganization to which the issuer, or i ts parent
1344	2269		or subsidiary and the other person, or its parent or subsidiary, are
1345	2270		parties if:
1346	2271
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	2273	+	BOLD FACE denotes Committee Amendments. 1
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	2297	+
1347	2298		a. the securities to be distributed are registered under
1348	2299		the Securities Act of 1933 before the vote by security
1349	2300		holders on the transaction, or
1350		-
1351	2301		b. the securities to be distributed are not req uired to
1352	2302		be registered under the Securities Act of 1933,
1353	2303		written notice of the transaction and a copy of the
1354	2304		materials, if any, by which approval of the
1355	2305		transaction will be solicited from such se curity
1356	2306		holders is given to the Admin istrator at least ten
1357	2307		(10) full business days before the vote by security
1358	2308		holders on the transaction and the Administrator does
1359	2309		not commence a proceeding to deny the exemption within
1360	2310		the next ten (10) full business days; however, such
1361		-
1362		-	ENR. S. B. NO. 1361 Page 32
1363	2311		notice shall not be r equired if the sole purpo se of
1364	2312		the transaction is to change an issuer’s domicile
1365	2313		solely within the United States;
1366		-
1367	2314		20. A rescission offer, sale, or purchase under Section 38 1-
1368	2315		510 of the Oklahoma Uniform Securities Act of 2004 this title;
1369		-
1370	2316		21. An offer or sale of a security throug h a broker-dealer
1371	2317		registered under the Oklahoma Uniform Securities Act of 2004 to a
1372	2318		person not a resident of this state and not present in this state if
1373	2319		the offer or sale does not constitute a violatio n of the laws of the
1374	2320		state or foreign jurisdiction in w hich the offeree or purchaser is
	2321	+
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	2329	+	7
	2330	+	8
	2331	+	9
	2332	+	10
	2333	+	11
	2334	+	12
	2335	+	13
	2336	+	14
	2337	+	15
	2338	+	16
	2339	+	17
	2340	+	18
	2341	+	19
	2342	+	20
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	2344	+	22
	2345	+	23
	2346	+	24
	2347	+
1375	2348		present and is not part of an unlawful plan or scheme to evade the
1376	2349		Oklahoma Uniform Securities Act of 2004;
1377		-
1378	2350		22. Employees’ stock purchase, savings, option, profit -sharing,
1379	2351		pension, or similar employees’ benefit plan, including any
1380	2352		securities, plan interests, and guarantees issued under a
1381	2353		compensatory benefit plan or compensation contract, contained in a
1382	2354		record, established by the issuer, its parents, its majority -owned
1383	2355		subsidiaries, or the majority-owned subsidiaries of the issuer’s
1384	2356		parent for the participation of their employees including offers or
1385	2357		sales of such securities to:
1386		-
1387	2358		a. directors; general partners; trustees, if the issuer
1388	2359		is a business trust; and officers; consultants; and
1389	2360		advisors,
1390		-
1391	2361		b. family members who acquire such securities from those
1392	2362		persons through gifts or domestic relations orders,
1393		-
1394	2363		c. former employees, directors, general partners,
1395	2364		trustees, and officers if those individuals were
1396	2365		employed by or providing services to the issuer when
1397	2366		the securities were offered, and
1398		-
1399	2367		d. insurance agents who are exclusive insurance agents of
1400	2368		the issuer, or the issuer ’s subsidiaries or parents,
1401	2369		or who derive more than fifty percent (50%) of their
1402	2370		annual income from those organ izations;
1403		-
1404	2371		23. A transaction i nvolving:
1405	2372
1406		-	ENR. S. B. NO. 1361 Page 33
	2373	+	SB1361 HFLR Page 47
	2374	+	BOLD FACE denotes Committee Amendments. 1
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	2397	+	24
1407	2398
1408	2399		a. a stock dividend or equivalent equity distribution,
1409	2400		whether the corporation or other business organization
1410	2401		distributing the dividend or equivalent equity
1411	2402		distribution is the issuer or not, if nothing of value
1412	2403		is given by stockholders or other equity holders for
1413	2404		the dividend or equivalent equity distribution other
1414	2405		than the surrender of a right to a cash or property
1415	2406		dividend if each stockholder or other equity holder
1416	2407		may elect to take the dividend or equivalent equit y
1417	2408		distribution in cash, proper ty, or stock,
1418		-
1419	2409		b. an act incident to a judicially approved
1420	2410		reorganization in which a security is issued in
1421	2411		exchange for one or more outstanding securities,
1422	2412		claims, or property interests, or partly in such
1423	2413		exchange and partly fo r cash, or
1424		-
1425	2414		c. the solicitation of tenders of securities by an
1426	2415		offeror in a tender offer in compliance with Rule 162
1427	2416		adopted under the Securities Act of 1933 (17 C.F.R.
1428	2417		230.162);
1429		-
1430	2418		24. A nonissuer transaction in an outstanding security by or
1431	2419		through a broker-dealer registered or exempt f rom registration under
1432	2420		this act, if the issuer is a reporting issuer in a foreign
1433	2421		jurisdiction designated by this paragraph or by rule adopted or
1434	2422		order issued under the Oklahoma Uniform Securities Act of 2004; has
	2423	+
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	2425	+	BOLD FACE denotes Committee Amendments. 1
	2426	+	2
	2427	+	3
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	2441	+	17
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	2444	+	20
	2445	+	21
	2446	+	22
	2447	+	23
	2448	+	24
	2449	+
1435	2450		been subject to continuous reporting requi rements in the foreign
1436	2451		jurisdiction for not less than one hundred eighty (180) days before
1437	2452		the transaction; and the security is listed on the foreign
1438	2453		jurisdiction’s securities exchange that has been designated by this
1439	2454		paragraph or by rule adopted or order issued under the Oklahoma
1440	2455		Uniform Securities Act of 2004, or is a security of the same issuer
1441	2456		that is of senior or substantially equal rank to the listed security
1442	2457		or is a warrant or right to purchase or subscribe to any of the
1443	2458		foregoing. For purposes of t his paragraph, Canada, together with
1444	2459		its provinces and territories, is a designated foreign jurisdiction
1445	2460		and The Toronto Stock Exchange, Inc., is a designated securities
1446	2461		exchange. After an administrative hearing in compliance with the
1447	2462		Administrative Proce dures Act, the Administrator, by rule adopted or
1448	2463		order issued under the Oklahoma Uniform Securities Act of 2004, may
1449		-
1450		-	ENR. S. B. NO. 1361 Page 34
1451	2464		revoke the designation of a securities exchange under this
1452	2465		paragraph, if the Administrator finds that revocat ion is necessary
1453	2466		or appropriate in the public interest and for the protection of
1454	2467		investors; or
1455		-
1456	2468		25. A sale or offer to sell a security by an issuer if:
1457		-
1458	2469		a. the issuer is a corporation or other business entity
1459	2470		residing in and doing business in this state and the
1460	2471		transaction meets the req uirements of the federal
1461	2472		exemption for intrastate offerings in Section 3(a)(11)
1462	2473		of the Securities Act of 1933, 15 U.S.C. 77c(a)(11)
	2474	+
	2475	+	SB1361 HFLR Page 49
	2476	+	BOLD FACE denotes Committee Amendments. 1
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	2499	+	24
	2500	+
1463	2501		and Rule 147A adopted under the Securities Act of 1933
1464	2502		(17 C.F.R. 230.147A) and as such the se curities shall
1465	2503		be sold only to persons who are residents of this
1466	2504		state at the time of purchase,
1467		-
1468	2505		b. the sum of all cash and other consideration to be
1469	2506		received for the sale of securities in reliance on
1470	2507		this exemption shall be limited to Five Million
1471	2508		Dollars ($5,000,000.00),
1472		-
1473	2509		c. the aggregate value of securities sold under this
1474	2510		exemption by an issuer to any one person does not
1475	2511		exceed Five Thousand Dollars ($5,000.00) unless the
1476	2512		purchaser is an accredited investor as that term is
1477	2513		defined by Rule 501 of Regulatio n D of the Securities
1478	2514		Act of 1933 (17 C.F.R. 230.501),
1479		-
1480	2515		d. a commission or other renumeration is not paid or
1481	2516		given, directly or indirectly, to a person not
1482	2517		registered under the Oklahoma Uniform Securities Act
1483	2518		of 2004 as a broker-dealer or as an agent,
1484		-
1485	2519		e. the issuer reasonably believes t hat all purchasers are
1486	2520		purchasing for investment and not for sale in
1487	2521		connection with a distribution of the security,
1488		-
1489	2522		f. the issuer distributes to prospective purchasers a
1490	2523		disclosure document containing the information set
	2524	+
	2525	+	SB1361 HFLR Page 50
	2526	+	BOLD FACE denotes Committee Amendments. 1
	2527	+	2
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	2549	+	24
	2550	+
1491	2551		forth by rule adopted under the Ok lahoma Uniform
1492	2552		Securities Act of 2004,
1493		-
1494		-	ENR. S. B. NO. 1361 Page 35
1495		-
1496	2553		g. the issuer, at least ten (10) business days prior to a
1497	2554		sale, files a notice of exemption with the Department
1498	2555		accompanied by the disclosure document required by
1499	2556		paragraph f of this subs ection, and the filing fee set
1500	2557		forth in the Oklahoma Uniform Securities Act of 2004,
1501	2558		pursuant to Section 1-612 of Title 71 of the Oklahoma
1502	2559		Statutes,
1503		-
1504	2560		h. the issuer files with the Department, for as long as
1505	2561		the offering is continuing, quarterly and fiscal ye ar-
1506	2562		end reports containing any changes to information that
1507	2563		has become inaccurate or incomplete in any material
1508	2564		respect including, but not limited to, the most recent
1509	2565		financial statements, and
1510		-
1511	2566		i. the issuer holds funds received from sales made in
1512	2567		reliance on this exemption in an escrow a ccount
1513	2568		established in a bank or depository institution
1514	2569		authorized to do business in this state and subject to
1515	2570		regulation under the laws of the United States or
1516	2571		under the laws of this state until the aggregate funds
1517	2572		raised from all purchases is equal to or greater than
1518	2573		the minimum target offering amount specified in the
1519	2574		disclosure document. All funds shall be used in
	2575	+
	2576	+	SB1361 HFLR Page 51
	2577	+	BOLD FACE denotes Committee Amendments. 1
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	2600	+	24
	2601	+
1520	2602		accordance with the representations made by the issuer
1521	2603		in the disclosure document required by subparagraph f
1522	2604		of this paragraph.
1523		-
1524	2605		Notwithstanding the foregoing provisions of this subsection, an
1525	2606		issuer shall be prohibited from offering securities under this
1526	2607		subsection if the issuer or any of its principals or control
1527	2608		persons:
1528		-
1529	2609		(1) within the last five (5) years has file d a
1530	2610		registration statement tha t is the subject of a
1531	2611		currently effective registration stop order
1532	2612		entered by any state securities administrator or
1533	2613		the Securities and Exchange Commission,
1534		-
1535	2614		(2) within the last five (5) years has been convicted
1536	2615		of any criminal offense in connection with the
1537		-
1538		-	ENR. S. B. NO. 1361 Page 36
1539	2616		offer, purchase, or sale of any security or
1540	2617		involving fraud or deceit,
1541		-
1542	2618		(3) is currently subject to any state or federal
1543	2619		administrative enforcement order or judgment
1544	2620		entered within the last five (5) years finding
1545	2621		fraud or deceit in connection with the purch ase
1546	2622		or sale of any security, or
1547		-
1548	2623		(4) is currently subject to any order, judgment or
1549	2624		decree of any court of competent jurisdiction
1550	2625		entered within the last five (5) years
	2626	+
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	2652	+
1551	2653		temporarily, preliminarily or permanently
1552	2654		restraining or enjoining such party from engag ing
1553	2655		in or continuing to engage in any conduct or
1554	2656		practice involving fraud or deceit in connection
1555	2657		with the purchase or sale of any security.
1556		-
1557	2658		Nothing in this subsection prohibits the use of general
1558	2659		solicitation or general adver tising in connection with the exemption
1559	2660		under this subsection.
1560		-
1561	2661		As to a particular offering, the Administrator may by rule or
1562	2662		order withdraw or further condition the exemption under this
1563	2663		subsection.
1564		-
1565	2664		SECTION 10. AMENDATORY 71 O.S. 20 21, Section 1-203, is
1566	2665		amended to read as follows:
1567		-
1568	2666		Section 1-203. A rule adopted or orde r issued under this act
1569	2667		may exempt a security, transaction, or offer; a r ule under this act
1570	2668		may exempt a class of securities, transactions, or offers from any
1571	2669		or all of the requirements of Sections 10 and 32 1-301 through 1-305
1572	2670		and 1-504 of this act title; and an order under this act may waive,
1573	2671		in whole or in part, any or all o f the conditions for an exem ption
1574	2672		or offer under Sections 6 1-201 and 7 1-202 of this act title.
1575		-
1576	2673		SECTION 11. AMENDATORY 71 O. S. 2021, Section 1-204, is
1577	2674		amended to read as follows:
1578		-
1579	2675		Section 1-204. A. Except with respect to a federal covered
1580	2676		security or a transaction involving a federal covered security, an
1581	2677
1582		-	ENR. S. B. NO. 1361 Page 37
	2678	+	SB1361 HFLR Page 53
	2679	+	BOLD FACE denotes Committee Amendments. 1
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	2703	+
1583	2704		order under this act may deny, suspend application of, condition,
1584	2705		limit, or revoke an exemption created un der subparagraph c or d of
1585	2706		paragraph 3 of Section 6 1-201 of this act title, or paragraph 7 or
1586	2707		8 of Section 6 1-201 of this act title or Section 7 1-202 of this
1587	2708		act title or an exemption or waiver c reated under Section 8 1-203 of
1588	2709		this act title with respect to a specific security, transaction, or
1589	2710		offer. An order under this section may be issued only pursuant to
1590	2711		the procedures in subsection D of Section 15 1-306 or Section 42 1-
1591	2712		604 of this act title and only prospectively.
1592		-
1593	2713		B. A person does not violate Section 10, 32 1-301, 1-504 or 38
1594	2714		1-510 of this act title by an offer to sell, offer to purchase,
1595	2715		sale, or purchase effected after the entry of an order issued under
1596	2716		this section if the person did not k now, and in the exercise of
1597	2717		reasonable care could not have known, of the order.
1598		-
1599	2718		SECTION 12. AMENDATORY 71 O.S. 2021, Section 1 -301, is
1600	2719		amended to read as follows:
1601		-
1602	2720		Section 1-301. It is unlawful for a p erson to offer or sell a
1603	2721		security in this state unless:
1604		-
1605	2722		1. The security is a federal co vered security;
1606		-
1607	2723		2. The security, transaction, or offer is exempt ed from
1608	2724		registration under Sect ions 6 1-201 through 8 1-203 of this act
1609	2725		title; or
1610		-
1611	2726		3. The security is registered under this act title.
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1612	2753
1613	2754		SECTION 13. AMENDATORY 71 O.S. 2021, Section 1-302, is
1614	2755		amended to read as follows:
1615		-
1616	2756		Section 1-302. A. With respect to a federal covered security,
1617	2757		as defined in Section 18(b)(2) of the Securities Act of 1933, (15
1618	2758		U.S.C. Section 77r(b)(2)), that is not otherwise exempt under
1619	2759		Sections 1-201 through 1-203 of this title, the issuer shall file a
1620	2760		notice with the Administrator pr ior to an offer in this state. A
1621	2761		separate notice shall be filed for each class of an issuer’s
1622	2762		securities offered in this state. Each notice shall be for an
1623	2763		indefinite amount of securities. A notice, or renewal thereof,
1624	2764		shall be accompanied by the filing fee set forth in Section 1 -612 of
1625		-
1626		-	ENR. S. B. NO. 1361 Page 38
1627	2765		this title. The Administrator may, by rule o r order, prescribe
1628	2766		notice filing and renewal requirements, and the requirements for
1629	2767		filing of reports of the dollar amount of securities sold or offered
1630	2768		to be sold to persons l ocated in this state.
1631		-
1632	2769		B. A notice filing under subsection A of this section is
1633	2770		effective for one (1) year com mencing on the later of the notice
1634	2771		filing or the effective ness of the offering filed with the
1635	2772		Securities and Exchange Commission. On or before ex piration, the
1636	2773		issuer may renew a notice filing by filing a copy of those records
1637	2774		filed by the issuer with the Securities and Exchange Commission that
1638	2775		are required by rule or order under this act to be filed and by
1639	2776		paying a renewal fee as provided in Sectio n 1-612 of this title. A
1640	2777		previously filed consent to service of process complyi ng with
	2778	+
	2779	+	SB1361 HFLR Page 55
	2780	+	BOLD FACE denotes Committee Amendments. 1
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	2804	+
1641	2805		Section 1-611 of this title may be incorporated by reference in a
1642	2806		renewal. A renewed notice filing becomes effective upon the
1643	2807		expiration of the filing being renewed.
1644		-
1645	2808		C. 1. With respect to a security that is a federal covered
1646	2809		security under Secti on 18(b)(4)(E) 18(b)(4)(F) of the Securities Act
1647	2810		of 1933, (15 U.S.C. Section 77r(b)(4)(E) 77r(b)(4)(F)), a rule under
1648	2811		this act may require a notice filing by or on behalf of an issuer as
1649	2812		allowed by applicable federal law is required and shal l be
1650	2813		accompanied by the payment of the fee se t forth in Section 1-612 of
1651	2814		this title. The Administrator shall designate the content and
1652	2815		timing of the notice filing by rule .
1653		-
1654	2816		2. With respect to a security that is a federal covered
1655	2817		security under Section 18(b)(3) or Section 18(b)(4)(D)(ii) of the
1656	2818		Securities Act of 1933, (15 U.S.C. Sections 77r(b)(3) and Section
1657	2819		77r(b)(4)(D)(ii)), a rule under this act may require a notice filing
1658	2820		by or on behalf of an issuer as allowed by applicable federal law is
1659	2821		required and shall be accom panied by the payment of the fee set
1660	2822		forth in Section 1-612 of this title. The Administ rator shall
1661	2823		designate the content and timing of the notice filing by rule .
1662		-
1663	2824		D. Except with respect to a federal covered security under
1664	2825		Section 18(b)(1) of the Securitie s Act of 1933, (15 U.S.C. Section
1665	2826		77r(b)(1)), if the Administrator finds that there is a failure to
1666	2827		comply with a notice or fee requirement of this section, the
1667	2828		Administrator may issue a stop order suspending the offer and sale
	2829	+
	2830	+	SB1361 HFLR Page 56
	2831	+	BOLD FACE denotes Committee Amendments. 1
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	2855	+
1668	2856		of a federal covered securit y in this state. If the deficiency is
1669		-
1670		-	ENR. S. B. NO. 1361 Page 39
1671	2857		corrected, the stop order is void as of the time of its issuance and
1672	2858		no penalty may be imposed by the Administrator.
1673		-
1674	2859		SECTION 14. AMENDATORY 71 O.S. 2021, Section 1 -303, is
1675	2860		amended to read as f ollows:
1676		-
1677	2861		Section 1-303. A. A security for which a registration
1678	2862		statement has been filed under the Securities Act of 1933 in
1679	2863		connection with the same offering may be registered by coordination
1680	2864		under this section.
1681		-
1682	2865		B. A registration statement under this sec tion must contain or
1683	2866		be accompanied by the following records in addition to the
1684	2867		information specified in Section 14 1-305 of this act title and a
1685	2868		consent to service of p rocess complying wit h Section 49 1-611 of
1686	2869		this act title:
1687		-
1688	2870		1. A copy of the latest form of prospectus filed under th e
1689	2871		Securities Act of 1933;
1690		-
1691	2872		2. A copy of the articles of inc orporation and bylaws or their
1692	2873		substantial equivalents currently in effect; a copy of any agreement
1693	2874		with or among underwriters; a copy of any indenture or other
1694	2875		instrument governing the issuance of the security to be registered;
1695	2876		and a specimen, copy, or de scription of the security that is
1696	2877		required by rule ado pted or order issued under this act;
1697	2878
	2879	+	SB1361 HFLR Page 57
	2880	+	BOLD FACE denotes Committee Amendments. 1
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	2904	+
1698	2905		3. Copies of any other information or any other records filed
1699	2906		by the issuer under the Securities Act of 1 933 requested by the
1700	2907		Administrator; and
1701		-
1702	2908		4. An undertaking to forward each amendment to the federal
1703	2909		prospectus, other than an amendment that delays the effective date
1704	2910		of the registration statement, promptly after it is fi led with the
1705	2911		Securities and Exchang e Commission and in any event not later than
1706	2912		the first business day after the day the amendment is forwarded to
1707	2913		or filed with the Securities and Exchange Commission, whiche ver
1708	2914		first occurs.
1709		-
1710	2915		C. A registration statement un der this section becomes
1711	2916		effective simultaneously with or subsequent to the federal
1712		-
1713		-	ENR. S. B. NO. 1361 Page 40
1714	2917		registration statement when all the following conditions are
1715	2918		satisfied:
1716		-
1717	2919		1. A stop order under subsection D of this section or Section
1718	2920		15 1-306 of this act title or issued by the Securities and Exchange
1719	2921		Commission is not in effect and a proceeding is not pending aga inst
1720	2922		the issuer under Section 15 1-306 of this act title; and
1721		-
1722	2923		2. The registration statement has been on file for at least
1723	2924		twenty (20) days or a shorter period provided by rule adopted or
1724	2925		order issued under this act.
1725		-
1726	2926		D. The registrant shall promptly notif y the Administrator in a
1727	2927		record of the date when the f ederal registration statement becomes
1728	2928		effective and the content of any price amendm ent and shall promptly
	2929	+
	2930	+	SB1361 HFLR Page 58
	2931	+	BOLD FACE denotes Committee Amendments. 1
	2932	+	2
	2933	+	3
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	2955	+
1729	2956		file a record containing the price amendment. If the notice is not
1730	2957		timely received, the Adminis trator may issue a stop order, without
1731	2958		prior notice or hearing, retroactively denying effectiveness to the
1732	2959		registration statement or susp ending its effectiveness until
1733	2960		compliance with this section. The Administrator shall promptly
1734	2961		notify the registrant of the order by telegram, telephone, or
1735	2962		electronic means and promptly confirm this notice by a record. If
1736	2963		the registrant subsequently comp lies with the notice requiremen ts of
1737	2964		this section, the stop order is void as of the date of its issuance.
1738		-
1739	2965		E. If the federal registration statement becomes effective
1740	2966		before each of the conditions in this section is satisfied or is
1741	2967		waived by the Administrat or, the registration statement is
1742	2968		automatically effective under this act when all the conditions are
1743	2969		satisfied or waived. If the registrant notifies the Administrator
1744	2970		of the date when the federal registration statement is expected to
1745	2971		become effective, the Administrator shall promptly n otify the
1746	2972		registrant by telegram, telephone, or electronic means and promptly
1747	2973		confirm this notice by a record, indicating whether all the
1748	2974		conditions are satisfied or waived and whether the Administrator
1749	2975		intends the institutio n of a proceeding under Section 15 1-306 of
1750	2976		this act title. The notice by the Administrator does not preclude
1751	2977		the institution of such a proceeding.
1752		-
1753	2978		SECTION 15. AMENDATORY 71 O.S. 2021 , Section 1-304, is
1754	2979		amended to read as follows:
1755	2980
1756		-
1757		-	ENR. S. B. NO. 1361 Page 41
	2981	+	SB1361 HFLR Page 59
	2982	+	BOLD FACE denotes Committee Amendments. 1
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	3006	+
1758	3007		Section 1-304. A. A security may be registered by
1759	3008		qualification under this section.
1760		-
1761	3009		B. A registration statement und er this section must contain the
1762	3010		information or records specified in Section 14 1-305 of this act
1763	3011		title, a consent to service of process complying with Section 49 1-
1764	3012		611 of this act title, and the following information or records:
1765		-
1766	3013		1. With respect to the is suer and any significant subsidiary,
1767	3014		its name, address, and form of organization; the state or foreign
1768	3015		jurisdiction and dat e of its organization; the general character and
1769	3016		location of its business; a description of its physical properties
1770	3017		and equipment; and a statement of the general competitive conditions
1771	3018		in the industry or business in which it is or will be engaged;
1772		-
1773	3019		2. With respect to each director and officer of the issuer, and
1774	3020		other person having a similar status or performing similar
1775	3021		functions, the person’s name, address, and principal occupation for
1776	3022		the previous five (5) years; the amount of securities of the issuer
1777	3023		held by the person as of the 30th day before the filing of the
1778	3024		registration statement; the amount of the securities covered by the
1779	3025		registration statement to which the person has indicated an
1780	3026		intention to subscribe; and a description of any material interest
1781	3027		of the person in any material transaction with the issuer or a
1782	3028		significant subsidiary effected within the previous three (3) years
1783	3029		or proposed to be effected;
1784	3030
	3031	+	SB1361 HFLR Page 60
	3032	+	BOLD FACE denotes Committee Amendments. 1
	3033	+	2
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	3055	+	24
	3056	+
1785	3057		3. With respect to persons covered by paragraph 2 of this
1786	3058		subsection, the aggregate sum of the rem uneration paid to those
1787	3059		persons during the pr evious twelve (12) months and estimated to be
1788	3060		paid during the next twelve (12) months, directly or indirectly, by
1789	3061		the issuer, and all predecessors, parents, subsidiaries, and
1790	3062		affiliates of the issuer;
1791		-
1792	3063		4. With respect to a person owning of record or owning
1793	3064		beneficially, if known, ten percent (10%) or more of the outstanding
1794	3065		shares of any class of equity security of the issuer, the
1795	3066		information or recor ds specified in paragraph 2 of this subsection
1796	3067		other than the person’s occupation;
1797		-
1798	3068		5. With respect to a pro moter, if the issuer was orga nized
1799	3069		within the previous three (3) years, the information or records
1800		-
1801		-	ENR. S. B. NO. 1361 Page 42
1802	3070		specified in paragraph 2 of this subsection, any amount paid to the
1803	3071		promoter within that period or intended to b e paid to the promoter,
1804	3072		and the consideration for the payment;
1805		-
1806	3073		6. With respect to a person on whose behalf any part of the
1807	3074		offering is to be made in a nonissuer distribution, the person ’s
1808	3075		name and address; the amount of securities of the issuer held by th e
1809	3076		person as of the date of the filing of the registration statement; a
1810	3077		description of any material interest of the person in any mate rial
1811	3078		transaction with the issuer or any significant subsidia ry effected
1812	3079		within the previous three (3) years or proposed to be effected; and
1813	3080		a statement of the reasons f or making the offering;
1814	3081
	3082	+	SB1361 HFLR Page 61
	3083	+	BOLD FACE denotes Committee Amendments. 1
	3084	+	2
	3085	+	3
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	3099	+	17
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	3106	+	24
	3107	+
1815	3108		7. The capitalization and long term debt, on both a current and
1816	3109		pro forma basis, of the issuer and any significant subsidia ry,
1817	3110		including a description of each security outstanding or bei ng
1818	3111		registered or otherwise offered, and a sta tement of the amount and
1819	3112		kind of consideration, whether in the form of cash, physical as sets,
1820	3113		services, patents, goodwill, or anything else of value , for which
1821	3114		the issuer or any subsidiary has issued its securit ies within the
1822	3115		previous two (2) years or is obligated to issue its securit ies;
1823		-
1824	3116		8. The kind and amount of securities to be offered; t he
1825	3117		proposed offering price or the method by which it is to b e computed;
1826	3118		any variation at which a proportion of the offering is to be made to
1827	3119		a person or class of person s other than the underwriters , with a
1828	3120		specification of the person or class; the basis on which the
1829	3121		offering is to be made if otherwise than for cash ; the estimated
1830	3122		aggregate underwriting and selling discounts or commissions and
1831	3123		finders’ fees, including separately cash, securities, con tracts, or
1832	3124		anything else of value to accrue to the underwri ters or finders in
1833	3125		connection with the offering or, if the s elling discounts or
1834	3126		commissions are variable, the basis of dete rmining them and their
1835	3127		maximum and minimum am ounts; the estimated amounts of other selling
1836	3128		expenses, including legal, engineering, an d accounting charges; the
1837	3129		name and address of each underwrit er and each recipient of a
1838	3130		finder’s fee; a copy of any underwri ting or selling group agreement
1839	3131		under which the distribution is to be made or the proposed form of
	3132	+
	3133	+	SB1361 HFLR Page 62
	3134	+	BOLD FACE denotes Committee Amendments. 1
	3135	+	2
	3136	+	3
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	3140	+	7
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	3145	+	12
	3146	+	13
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	3149	+	16
	3150	+	17
	3151	+	18
	3152	+	19
	3153	+	20
	3154	+	21
	3155	+	22
	3156	+	23
	3157	+	24
	3158	+
1840	3159		any such agreement whose terms hav e not yet been determined; and a
1841	3160		description of the plan of distribution of any securities that are
1842	3161		to be offered otherwise than through an underwriter;
1843		-
1844		-
1845		-	ENR. S. B. NO. 1361 Page 43
1846	3162		9. The estimated monetary proceeds to be re ceived by the issuer
1847	3163		from the offering; the purposes for wh ich the proceeds are to be
1848	3164		used by the issuer; the estimated amount to be used for each
1849	3165		purpose; the order or priority in w hich the proceeds will be used
1850	3166		for the purposes stated; the amounts of any funds to be raised from
1851	3167		other sources to achieve the purpo ses stated; the sources of the
1852	3168		funds; and, if a part of the proceeds is to be used to acquire
1853	3169		property, including goodwill, otherwise than in the ordinary course
1854	3170		of business, the names and addresse s of the vendors, the purchase
1855	3171		price, the names of any pers ons that have received commissions in
1856	3172		connection with the ac quisition, and the amounts of the commissions
1857	3173		and other expenses in connection with the acquisition, includi ng the
1858	3174		cost of borrowing mone y to finance the acquisition;
1859		-
1860	3175		10. A description of any sto ck options or other security
1861	3176		options outstanding, or to be c reated in connection with the
1862	3177		offering, and the amount of those options held or to be held by each
1863	3178		person required to be named in paragra ph 2, 4, 5, 6 or 8 of this
1864	3179		subsection and by any person tha t holds or will hold ten percent
1865	3180		(10%) or more in the aggreg ate of those options;
1866		-
1867	3181		11. The dates of, parties to, and genera l effect concisely
1868	3182		stated of each managerial or other material contract ma de or to be
	3183	+
	3184	+	SB1361 HFLR Page 63
	3185	+	BOLD FACE denotes Committee Amendments. 1
	3186	+	2
	3187	+	3
	3188	+	4
	3189	+	5
	3190	+	6
	3191	+	7
	3192	+	8
	3193	+	9
	3194	+	10
	3195	+	11
	3196	+	12
	3197	+	13
	3198	+	14
	3199	+	15
	3200	+	16
	3201	+	17
	3202	+	18
	3203	+	19
	3204	+	20
	3205	+	21
	3206	+	22
	3207	+	23
	3208	+	24
	3209	+
1869	3210		made otherwise than in the ordinary course of b usiness to be
1870	3211		performed in whole or in part at or after the filing of the
1871	3212		registration statement or that was made within th e previous two (2)
1872	3213		years, and a copy of the c ontract;
1873		-
1874	3214		12. A description of any pending litigation, action, or
1875	3215		proceeding to which th e issuer is a party and that materially
1876	3216		affects its business or assets, and any litigation, action, or
1877	3217		proceeding known to be contemplated by governmental authorities;
1878		-
1879	3218		13. A copy of any prospectus , pamphlet, circular, form letter,
1880	3219		advertisement, or other sales literature intended as of the
1881	3220		effective date to be use d in connection with the offering and any
1882	3221		solicitation of inter est used in compliance with subparagraph b of
1883	3222		paragraph 18 of Section 7 1-202 of this act title;
1884		-
1885	3223		14. A specimen or copy of the secur ity being registered, unless
1886	3224		the security is uncertificated; a copy of t he issuer’s articles of
1887	3225		incorporation and bylaws or their subst antial equivalents, in
1888		-
1889		-	ENR. S. B. NO. 1361 Page 44
1890	3226		effect; and a copy of any indenture or other instrument covering the
1891	3227		security to be registered;
1892		-
1893	3228		15. A signed or conformed copy of an opinion of counsel
1894	3229		concerning the legality of the security being registered, with an
1895	3230		English translation if it is in a language othe r than English, which
1896	3231		states whether the security when sold will be validly issued, full y
1897	3232		paid, and nonassessable and, if a debt security, a binding
1898	3233		obligation of the issuer;
1899	3234
	3235	+	SB1361 HFLR Page 64
	3236	+	BOLD FACE denotes Committee Amendments. 1
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	3238	+	3
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	3260	+
1900	3261		16. A signed or conformed copy of a consent of any accountant,
1901	3262		engineer, appraiser, or other person whose pro fession gives
1902	3263		authority for a statement made by the person, if the person is named
1903	3264		as having prepared or certified a report or valu ation, other than an
1904	3265		official record, that is public, which is used in connection with
1905	3266		the registration statement;
1906		-
1907	3267		17. A balance sheet of the issuer as of a date within four (4)
1908	3268		months before the filing of the registration statement; a statement
1909	3269		of income and changes in financial position for each of the three
1910	3270		(3) fiscal years preceding the date of the balance sheet and for any
1911	3271		period between the close of the immediately previous fisca l year and
1912	3272		the date of the balance sheet, or for the period of the issue r’s and
1913	3273		any predecessor’s existence if less than three (3) years; and, if
1914	3274		any part of the procee ds of the offering is to be a pplied to the
1915	3275		purchase of a business, the financial stateme nts that would be
1916	3276		required if that business were the registrant; and
1917		-
1918	3277		18. Any additional information or records required by rule
1919	3278		adopted or order issued under this act.
1920		-
1921	3279		C. A registration statement under this section becomes
1922	3280		effective thirty (30) days, or any shorter period provided by rule
1923	3281		adopted or order issued under this a ct, after the date the
1924	3282		registration statement or the last amend ment other than a price
1925	3283		amendment is filed, if:
1926	3284
	3285	+	SB1361 HFLR Page 65
	3286	+	BOLD FACE denotes Committee Amendments. 1
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	3288	+	3
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	3298	+	13
	3299	+	14
	3300	+	15
	3301	+	16
	3302	+	17
	3303	+	18
	3304	+	19
	3305	+	20
	3306	+	21
	3307	+	22
	3308	+	23
	3309	+	24
	3310	+
1927	3311		1. A stop order is not in effect and a proceeding is not
1928	3312		pending under Section 15 1-306 of this act title;
1929		-
1930	3313		2. The Administrator has not issued an order und er Section 15
1931	3314		1-306 of this act title postponing effectiveness; and
1932		-
1933		-	ENR. S. B. NO. 1361 Page 45
1934		-
1935	3315		3. The applicant or registrant has not reque sted that
1936	3316		effectiveness be delayed.
1937		-
1938	3317		D. The Administrator may delay effectiveness once for not more
1939	3318		than ninety (90) days if the Administrator determines t he
1940	3319		registration statement is not complete in all material respe cts and
1941	3320		promptly notifies the applican t or registrant of that determination.
1942	3321		The Administrator may also delay effectiveness for a further period
1943	3322		of not more than thirty (30) days if the Admini strator determines
1944	3323		that the delay is necessary or appropriate.
1945		-
1946	3324		E. A rule adopted or order issued und er this act may require as
1947	3325		a condition of registration unde r this section that a prospectus
1948	3326		containing a specified part of the information or record specif ied
1949	3327		in subsection B of this section be sent or given to each pe rson to
1950	3328		which an offer is made, before or concurrently, with the earliest
1951	3329		of:
1952		-
1953	3330		1. The first offer made in a record to the person otherwise
1954	3331		than by means of a public advertisement, by or for the account of
1955	3332		the issuer or another person on whose behalf the of fering is being
1956	3333		made or by an underwri ter or broker-dealer that is offering part of
	3334	+
	3335	+	SB1361 HFLR Page 66
	3336	+	BOLD FACE denotes Committee Amendments. 1
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	3338	+	3
	3339	+	4
	3340	+	5
	3341	+	6
	3342	+	7
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	3347	+	12
	3348	+	13
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	3351	+	16
	3352	+	17
	3353	+	18
	3354	+	19
	3355	+	20
	3356	+	21
	3357	+	22
	3358	+	23
	3359	+	24
	3360	+
1957	3361		an unsold allotment or subscription taken by the person as a
1958	3362		participant in the distribution;
1959		-
1960	3363		2. The confirmation of a sale made by or for the account of the
1961	3364		person;
1962		-
1963	3365		3. Payment pursuant to such a sale; or
1964		-
1965	3366		4. Delivery of the security pursuant to such a sale.
1966		-
1967	3367		SECTION 16. AMENDATORY 71 O.S. 2021, Section 1 -305, is
1968	3368		amended to read as follows:
1969		-
1970	3369		Section 1-305. A. A registration statement may be filed by the
1971	3370		issuer, a person on whose behalf the offering is to be made, or a
1972	3371		broker-dealer registered under this act.
1973		-
1974	3372		B. A person filing a registration statement shall pay the
1975	3373		filing fee set forth in Secti on 50 1-612 of this act title. If a
1976		-
1977		-	ENR. S. B. NO. 1361 Page 46
1978	3374		registration statement is w ithdrawn before the effective date or a
1979	3375		preeffective stop order is issued under Section 15 1-306 of this act
1980	3376		title, the Administrator shall retain the fee.
1981		-
1982	3377		C. A registration statement filed u nder Section 12 or 13 1-303
1983	3378		and 1-304 of this act title must specify:
1984		-
1985	3379		1. The amount of securities to be offered in this state;
1986		-
1987	3380		2. The states in which a registration statement or similar
1988	3381		record in connection with the offering has been or is to be filed;
1989	3382		and
1990	3383
	3384	+	SB1361 HFLR Page 67
	3385	+	BOLD FACE denotes Committee Amendments. 1
	3386	+	2
	3387	+	3
	3388	+	4
	3389	+	5
	3390	+	6
	3391	+	7
	3392	+	8
	3393	+	9
	3394	+	10
	3395	+	11
	3396	+	12
	3397	+	13
	3398	+	14
	3399	+	15
	3400	+	16
	3401	+	17
	3402	+	18
	3403	+	19
	3404	+	20
	3405	+	21
	3406	+	22
	3407	+	23
	3408	+	24
	3409	+
1991	3410		3. Any adverse order, judgment, or decree issued in connecti on
1992	3411		with the offering by a sta te securities regulator, the Securities
1993	3412		and Exchange Commission, or a court.
1994		-
1995	3413		D. A record filed under this a ct or the predecessor act within
1996	3414		five (5) years preceding the filing of a regi stration statement may
1997	3415		be incorporated by reference in the registratio n statement to the
1998	3416		extent that the record is currently accu rate.
1999		-
2000	3417		E. In the case of a nonissuer distribution , information or a
2001	3418		record may not be required under sub section I of this section or
2002	3419		Section 13 1-304 of this act title, unless it is known to the p erson
2003	3420		filing the registration statement or to the person on whose behalf
2004	3421		the distribution is to be made or unless it can be furnished by
2005	3422		those persons without unre asonable effort or expense.
2006		-
2007	3423		F. A rule adopted or order issued un der this act may require as
2008	3424		a condition of registration that a security issued within th e
2009	3425		previous five (5) years or to be issued to a promoter for a
2010	3426		consideration substantially less than the public offering price or
2011	3427		to a person for a consideration other t han cash be deposited in
2012	3428		escrow; and that the proceeds from the sale of the registered
2013	3429		security in this state be impounded until the issuer receives a
2014	3430		specified amount from the sale of the se curity either in this state
2015	3431		or elsewhere. The conditions of any escrow or impoundment requir ed
2016	3432		under this subsection may be established by rule adopted or order
2017	3433		issued under this act, but the Administrator may no t reject a
	3434	+
	3435	+	SB1361 HFLR Page 68
	3436	+	BOLD FACE denotes Committee Amendments. 1
	3437	+	2
	3438	+	3
	3439	+	4
	3440	+	5
	3441	+	6
	3442	+	7
	3443	+	8
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	3446	+	11
	3447	+	12
	3448	+	13
	3449	+	14
	3450	+	15
	3451	+	16
	3452	+	17
	3453	+	18
	3454	+	19
	3455	+	20
	3456	+	21
	3457	+	22
	3458	+	23
	3459	+	24
	3460	+
2018	3461		depository institution solely be cause of its location in another
2019	3462		state.
2020		-
2021		-	ENR. S. B. NO. 1361 Page 47
2022		-
2023	3463		G. A rule adopted or ord er issued under this act may require as
2024	3464		a condition of registration that a security regi stered under this
2025	3465		act be sold only on a specified form of su bscription or sale
2026	3466		contract and that a sign ed or conformed copy of each contra ct be
2027	3467		filed under this act or preserved for a period speci fied by the rule
2028	3468		or order, which may not be longer than five (5) years.
2029		-
2030	3469		H. Except while a stop order is in effect under Section 15 1-
2031	3470		306 of this act title, a registration statement is effective for one
2032	3471		year after its effective date, or for any longer peri od designated
2033	3472		in an order under this act during which the se curity is being
2034	3473		offered or distributed in a nonexempted transaction by o r for the
2035	3474		account of the issuer or other person on whose behalf the offering
2036	3475		is being made or by an underwriter or broker -dealer that is still
2037	3476		offering part of an unsold allotment or s ubscription taken as a
2038	3477		participant in the distribution. For the purpose s of a nonissuer
2039	3478		transaction, all outstanding securities of the same class ide ntified
2040	3479		in the registration statement as a sec urity registered under this
2041	3480		act are considered to be registe red while the registration statement
2042	3481		is effective. If any securities of the same class are outstanding ,
2043	3482		a registration statement may not be withdrawn until one year after
2044	3483		its effective date. A r egistration statement may be withdrawn only
2045	3484		with the approval of the Administrator.
2046	3485
	3486	+	SB1361 HFLR Page 69
	3487	+	BOLD FACE denotes Committee Amendments. 1
	3488	+	2
	3489	+	3
	3490	+	4
	3491	+	5
	3492	+	6
	3493	+	7
	3494	+	8
	3495	+	9
	3496	+	10
	3497	+	11
	3498	+	12
	3499	+	13
	3500	+	14
	3501	+	15
	3502	+	16
	3503	+	17
	3504	+	18
	3505	+	19
	3506	+	20
	3507	+	21
	3508	+	22
	3509	+	23
	3510	+	24
	3511	+
2047	3512		I. While a registration statement is effective, the person that
2048	3513		filed the registration statement shall file reports, not more often
2049	3514		than quarterly, to keep the information or other record in the
2050	3515		registration statement reasonably cu rrent and to disclose the
2051	3516		progress of the offering.
2052		-
2053	3517		J. A registration statement may be amended after i ts effective
2054	3518		date. The posteffective amendment becomes effective when the
2055	3519		Administrator so orders. If a posteffective amendment is made to
2056	3520		increase the number of securities specified to be offered or sold,
2057	3521		the person filing the amendment shall pay a regi stration fee as
2058	3522		provided in Section 50 1-612 of this act title. A posteffective
2059	3523		amendment relates back to the date of the offering of the additional
2060	3524		securities being registered if, within one year after the date of
2061	3525		the sale, the amendme nt is filed and the additional registration fee
2062	3526		is paid.
2063		-
2064		-
2065		-	ENR. S. B. NO. 1361 Page 48
2066	3527		K. The records of an issuer registered or required to be
2067	3528		registered under this act are subject to such reasonable periodic,
2068	3529		special, or other audits or inspections by a representative of the
2069	3530		Administrator, within or without this state, as the Administrator
2070	3531		considers necessary or appropriate in the public inte rest and for
2071	3532		the protection of investors. An audit or inspe ction may be made at
2072	3533		any time and without prior notice. The Administrator may copy, and
2073	3534		remove for audit or inspection copies of, all records the
2074	3535		Administrator reasonably considers necessary or a ppropriate to
	3536	+
	3537	+	SB1361 HFLR Page 70
	3538	+	BOLD FACE denotes Committee Amendments. 1
	3539	+	2
	3540	+	3
	3541	+	4
	3542	+	5
	3543	+	6
	3544	+	7
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	3555	+	18
	3556	+	19
	3557	+	20
	3558	+	21
	3559	+	22
	3560	+	23
	3561	+	24
	3562	+
2075	3563		conduct the audit or inspection. The Administ rator may assess a
2076	3564		reasonable charge for conducting an audit or inspection under thi s
2077	3565		subsection.
2078		-
2079	3566		SECTION 17. AMENDATORY 71 O.S. 2021, Section 1-306, is
2080	3567		amended to read as follows:
2081		-
2082	3568		Section 1-306. A. The Administrator may issue a stop order
2083	3569		denying effectiveness to, or suspending or revoking the
2084	3570		effectiveness of, a registration statement if the Administrator
2085	3571		finds that the order is in the public interest and that:
2086		-
2087	3572		1. The registration statement as of its effective date or
2088	3573		before the effective date in the case of an order denying
2089	3574		effectiveness, an amendment under subsection J of Section 14 1-305
2090	3575		of this act title as of its effective date, or a rep ort under
2091	3576		subsection I of Section 14 1-305 of this act title, is incomplete in
2092	3577		a material respect or contains a statement that, in the light of the
2093	3578		circumstances under which it was made, was false or misleading with
2094	3579		respect to a material fact;
2095		-
2096	3580		2. This act or a rule adopted or order issued under this act or
2097	3581		a condition imposed under this act has been willfully violated, in
2098	3582		connection with the offering, by the person filing the registration
2099	3583		statement; by the issuer, a partner, officer, or direct or of the
2100	3584		issuer or a person having a sim ilar status or performing a similar
2101	3585		function, a promoter of the issuer, or a person directly or
2102	3586		indirectly controlling or controlled by the issuer, but only if the
	3587	+
	3588	+	SB1361 HFLR Page 71
	3589	+	BOLD FACE denotes Committee Amendments. 1
	3590	+	2
	3591	+	3
	3592	+	4
	3593	+	5
	3594	+	6
	3595	+	7
	3596	+	8
	3597	+	9
	3598	+	10
	3599	+	11
	3600	+	12
	3601	+	13
	3602	+	14
	3603	+	15
	3604	+	16
	3605	+	17
	3606	+	18
	3607	+	19
	3608	+	20
	3609	+	21
	3610	+	22
	3611	+	23
	3612	+	24
	3613	+
2103	3614		person filing the registration statement is directl y or indirectly
2104	3615		controlled by or acting f or the issuer; or by an underwriter;
2105		-
2106	3616		3. The security registered or sought to be registered is the
2107	3617		subject of a permanent or temporary injunction of a court of
2108		-
2109		-	ENR. S. B. NO. 1361 Page 49
2110	3618		competent jurisdiction or an administrative stop order or similar
2111	3619		order issued under any federal , foreign, or state law other than
2112	3620		this act applicable to th e offering, but the Administrator may not
2113	3621		institute a proceeding against an effective registration statement
2114	3622		under this paragraph more than one year after the date of the order
2115	3623		or injunction on which it is based, and the Administrator may not
2116	3624		issue an order under this paragraph on the basis of an order or
2117	3625		injunction issued under the securities act of another state unless
2118	3626		the order or injunction was based on conduct that would constitute,
2119	3627		as of the date of the order, a ground for a stop order under this
2120	3628		section;
2121		-
2122	3629		4. The issuer’s enterprise or method of business includes or
2123	3630		would include activities that are unlawful where performed;
2124		-
2125	3631		5. With respect to a securi ty sought to be registered under
2126	3632		Section 12 1-303 of this act title, there has been a failure to
2127	3633		comply with the undertaking required by paragraph 4 of subsection B
2128	3634		of Section 12 1-303 of this act title;
2129		-
2130	3635		6. The applicant or registrant has not paid the filing fee, but
2131	3636		the Administrator shall void the order if the deficiency is
2132	3637		corrected; or
2133	3638
	3639	+	SB1361 HFLR Page 72
	3640	+	BOLD FACE denotes Committee Amendments. 1
	3641	+	2
	3642	+	3
	3643	+	4
	3644	+	5
	3645	+	6
	3646	+	7
	3647	+	8
	3648	+	9
	3649	+	10
	3650	+	11
	3651	+	12
	3652	+	13
	3653	+	14
	3654	+	15
	3655	+	16
	3656	+	17
	3657	+	18
	3658	+	19
	3659	+	20
	3660	+	21
	3661	+	22
	3662	+	23
	3663	+	24
	3664	+
2134	3665		7. The offering:
2135		-
2136	3666		a. will work or tend to work a fraud upon purchasers or
2137	3667		would so operate, or
2138		-
2139	3668		b. has been or would be made or is being made with
2140	3669		unreasonable amounts of underwriters ’ and sellers’
2141	3670		discounts, commissions, or other compensation;
2142	3671		promoters’ profits or participation; or unreasonable
2143	3672		amounts or kinds of options, profits, compensation, or
2144	3673		remuneration paid directly or indirectly to any
2145	3674		officer, director, employee, contracto r or agent.
2146		-
2147	3675		B. To the extent practicable, the Administrator by rule adopted
2148	3676		or order issued under this act shall publish standards that provide
2149	3677		notice of conduct that violates paragraph 7 of subsection A of this
2150	3678		section.
2151		-
2152		-
2153		-	ENR. S. B. NO. 1361 Page 50
2154	3679		C. The Administrator may not inst itute a stop order proceeding
2155	3680		against an effective registration statement on the basis of conduct
2156	3681		or a transaction known to the Administrator when the registration
2157	3682		statement became effective unless the proceeding is instituted
2158	3683		within thirty (30) days after the registration statement became
2159	3684		effective.
2160		-
2161	3685		D. The Administrator may summarily revoke, deny, postpone, or
2162	3686		suspend the effectiveness of a registration statement pending final
2163	3687		determination of an administrative proceeding. Upon the issuance of
2164	3688		the order, the Administrator shall promptly notify each person
	3689	+
	3690	+	SB1361 HFLR Page 73
	3691	+	BOLD FACE denotes Committee Amendments. 1
	3692	+	2
	3693	+	3
	3694	+	4
	3695	+	5
	3696	+	6
	3697	+	7
	3698	+	8
	3699	+	9
	3700	+	10
	3701	+	11
	3702	+	12
	3703	+	13
	3704	+	14
	3705	+	15
	3706	+	16
	3707	+	17
	3708	+	18
	3709	+	19
	3710	+	20
	3711	+	21
	3712	+	22
	3713	+	23
	3714	+	24
	3715	+
2165	3716		specified in subsection E of this section that the order has been
2166	3717		issued, the reasons for the revocation, denial, postponement, or
2167	3718		suspension, and that within fifteen (15) days after the receipt of a
2168	3719		request in a record from the person the matter will be scheduled for
2169	3720		a hearing and such hearing shall be commenced within fifteen (15)
2170	3721		days of the matter being set for hearing. If a hearing is not
2171	3722		requested and none is ordered by the Administrator, within th irty
2172	3723		(30) days after the date of service of the order, the order becomes
2173	3724		final. If a hearing is requested or ordered, the Administrator,
2174	3725		after notice of and opportunity for hearing for each person subject
2175	3726		to the order, may modify or vacate the order or ex tend the order
2176	3727		until final determination.
2177		-
2178	3728		E. Unless the right to notice and hearing is waived, a stop
2179	3729		order may not be issued under this section without:
2180		-
2181	3730		1. Appropriate notice to the applicant or registrant, the
2182	3731		issuer, and the person on whose behalf the securities are to be or
2183	3732		have been offered;
2184		-
2185	3733		2. An opportunity for hearing; and
2186		-
2187	3734		3. Findings of fact and conclusions of law in a record in
2188	3735		accordance with the Administrative Procedures Act.
2189		-
2190	3736		F. The Administrator may modify or vacate a stop order issued
2191	3737		under this section if the Administrator finds that the conditions
2192	3738		that caused its issuance have changed or that it is necessary or
	3739	+
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	3741	+	BOLD FACE denotes Committee Amendments. 1
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	3765	+
2193	3766		appropriate in the public interest or for the protection of
2194	3767		investors.
2195		-
2196		-
2197		-	ENR. S. B. NO. 1361 Page 51
2198	3768		SECTION 18. AMENDATORY 71 O.S. 2021, Section 1-307, is
2199	3769		amended to read as follows:
2200		-
2201	3770		Section 1-307. The Administrator may waive or modify, in whole
2202	3771		or in part, any or all of the requirements of Sections 11, 12, 1-
2203	3772		302, 1-303, and subsection B of Section 13 1-304 of this act title
2204	3773		or the requirement of any information or record in a registration
2205	3774		statement or in a periodic repo rt filed pursuant to subsection I of
2206	3775		Section 14 1-305 of this act title.
2207		-
2208	3776		SECTION 19. AMENDATORY 71 O.S. 2021, Section 1 -308, is
2209	3777		amended to read as follows:
2210		-
2211	3778		Section 1-308. A. In addition to all other applicable
2212	3779		registration provisions specified in this act, investment
2213	3780		certificate issuers are subject to the provisions of this section.
2214	3781		As used in this section:
2215		-
2216	3782		1. “Investment certificate ” means thrift certificates,
2217	3783		certificates of deposit, savings obligations and similar
2218	3784		certificates or obligations issued and sold by an investment
2219	3785		certificate issuer as defined in paragraph 2 of this subsection; and
2220		-
2221	3786		2. “Investment certificate issuer ” means any financial
2222	3787		institution or person , other than a federally or state chartered
2223	3788		bank, bank holding company, trust company or savings and loan
2224	3789		association, or any credit union, which accepts investor funds or
	3790	+
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	3792	+	BOLD FACE denotes Committee Amendments. 1
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	3816	+
2225	3817		deposits in exchange for the issuance of investment cert ificates;
2226	3818		provided, however, the term “investment certificate issuer” shall
2227	3819		not include a financial institution or person which, as of Nove mber
2228	3820		1, 1985, issued only the following securities:
2229		-
2230	3821		a. investment certificates exempt under the provisions of
2231	3822		Sections 6 1-201 through 8 1-203 of this act title,
2232		-
2233	3823		b. investment certificates registered by coordination
2234	3824		under Section 12 1-303 of this act title, or
2235		-
2236	3825		c. any other security as to which the Administrator, by
2237	3826		rule or order, finds that registration is not
2238	3827		necessary or appropriate for the prote ction of
2239	3828		investors.
2240		-
2241		-	ENR. S. B. NO. 1361 Page 52
2242		-
2243	3829		Nothing contained in this act shall be construed as precluding
2244	3830		an investment certificate issuer from qualifying for and r elying
2245	3831		upon any of the exemptions from the provisions of Sections 10 1-301
2246	3832		and 32 1-504 of this act title as contained in Sections 6 1-201
2247	3833		through 8 1-203 of this act title.
2248		-
2249	3834		B. In addition to other powers conferred by this act, the
2250	3835		Administrator shall have power to require an investment cer tificate
2251	3836		issuer to:
2252		-
2253	3837		1. Cause its books and records to be made available at its
2254	3838		offices and to provide to the Department a trial balance within five
2255	3839		(5) days of the commencement of any examination. The books and
2256	3840		records shall be audited at least once each year by an independent
	3841	+
	3842	+	SB1361 HFLR Page 76
	3843	+	BOLD FACE denotes Committee Amendments. 1
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	3864	+	22
	3865	+	23
	3866	+	24
	3867	+
2257	3868		certified public accountant in accordance with ge nerally accepted
2258	3869		auditing standards, and the report thereof, including financial
2259	3870		statements prepared in accordance with generally accepted accounting
2260	3871		principles, furnished to the Admi nistrator in such form as he or she
2261	3872		may require;
2262		-
2263	3873		2. Observe methods and standards, including classification
2264	3874		standards of loans, which the Administrator may prescribe by rule
2265	3875		adopted and promulgated pursuant to the Administrative Procedures
2266	3876		Act for determining the value of various types of assets;
2267		-
2268	3877		3. Maintain its accounting sy stems and procedures in accordance
2269	3878		with such regulations as adopted and promulgated by the
2270	3879		Administrator pursuant to the Administrative Procedures Act;
2271	3880		provided, the accounting system required shall have due regard to
2272	3881		the size of the investment certificate issuer;
2273		-
2274	3882		4. Charge off the whole or any part of an asset, the value of
2275	3883		which, at the time of the Administrator ’s action, has deteriorated
2276	3884		for reasons set forth by the Administrator b y rule adopted and
2277	3885		promulgated pursuant to the Admi nistrative Procedures Act; and
2278		-
2279	3886		5. Write down an asset to market value as prescribed by the
2280	3887		Administrator by rule adopted and promulgated pursuant to the
2281	3888		Administrative Procedures Act.
2282		-
2283		-
2284		-	ENR. S. B. NO. 1361 Page 53
2285	3889		C. Every investment certificate issuer shall obtain from the
2286	3890		Administrator a written acknowl edgment, issued in accordance with
2287	3891		procedures adopted and promulgated pursuant to the Administrative
	3892	+
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	3894	+	BOLD FACE denotes Committee Amendments. 1
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	3917	+	24
	3918	+
2288	3919		Procedures Act, that the investment certificate issuer engages in
2289	3920		the business of accepting investor funds or deposits in exchange fo r
2290	3921		the issuance of inve stment certificates. Any investment certificate
2291	3922		issuer who obtains such an acknowledgment shall be subject to this
2292	3923		section and shall possess all the rights, powers and privileges and
2293	3924		shall be subject to all of the duties, restriction s and limitations
2294	3925		contained herein. No company or person who fails to obtain such
2295	3926		acknowledgment within ninety (90) days of the effective date of the
2296	3927		adoption by the Administrator of procedures governing the issuance
2297	3928		of a written acknowledgment shall poss ess or exercise, unles s
2298	3929		expressly given and possessed or exercised under other laws, any of
2299	3930		the benefits, rights, powers or privileges which are herein
2300	3931		conferred on investment certificate issuers. Any com pany or person
2301	3932		who fails to obtain a written acknow ledgment as described herein may
2302	3933		not engage in the business of issuing investment certificates.
2303		-
2304	3934		D. Any officer, director or employee of an investment
2305	3935		certificate issuer found by the Administrator to be dishonest,
2306	3936		reckless, unfit to participate in the cond uct of the affairs o f the
2307	3937		institution, or practicing a continuing disregard or violation of
2308	3938		laws, rules, regulations or orders which are likely to cause
2309	3939		substantial loss to the company or likely to serio usly weaken the
2310	3940		condition of the company shall be rem oved immediately fro m office by
2311	3941		the board of directors of the investment certificate issuer of which
2312	3942		he or she is an officer, director or employee, on the written order
	3943	+
	3944	+	SB1361 HFLR Page 78
	3945	+	BOLD FACE denotes Committee Amendments. 1
	3946	+	2
	3947	+	3
	3948	+	4
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	3956	+	12
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	3959	+	15
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	3962	+	18
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	3964	+	20
	3965	+	21
	3966	+	22
	3967	+	23
	3968	+	24
	3969	+
2313	3970		of the Administrator; provided, th at the investment certificate
2314	3971		issuer or officer, empl oyee, or director ma y within ten (10) days
2315	3972		file a notice of protest for the removal with the Commission, and as
2316	3973		soon as possible thereafter, the Commission will review the order of
2317	3974		the Administrator and make findings as it deems proper, and that,
2318	3975		pending said time, the office r, employee or director shall not
2319	3976		perform any of the duties of his office.
2320		-
2321	3977		E. An investment certificate issuer shall not, without the
2322	3978		consent of the Administrator:
2323		-
2324	3979		1. Make a loan to any of its stockholders owning twenty -five
2325	3980		percent (25%) or more of the stock of the investment certificate
2326	3981		issuer, or its officers or directors;
2327		-
2328		-	ENR. S. B. NO. 1361 Page 54
2329		-
2330	3982		2. Make a loan to any employee in excess of Ten Thousand
2331	3983		Dollars ($10,000.00); or
2332		-
2333	3984		3. Make a loan to or othe r investment in or purchase any asset
2334	3985		from any company in which any of it s officers, directors or
2335	3986		stockholders may have any direct or indirect interest, unless made
2336	3987		in an arm’s length transaction.
2337		-
2338	3988		F. An investment certificate issuer shall not, without th e
2339	3989		consent of the Administrator:
2340		-
2341	3990		1. Lend money in exce ss of ten percent (10%) of its
2342	3991		shareholders’ equity to any person, association, partnership or
2343	3992		corporation liable for such obligations; provided, however, that
	3993	+
	3994	+	SB1361 HFLR Page 79
	3995	+	BOLD FACE denotes Committee Amendments. 1
	3996	+	2
	3997	+	3
	3998	+	4
	3999	+	5
	4000	+	6
	4001	+	7
	4002	+	8
	4003	+	9
	4004	+	10
	4005	+	11
	4006	+	12
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	4008	+	14
	4009	+	15
	4010	+	16
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	4013	+	19
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	4015	+	21
	4016	+	22
	4017	+	23
	4018	+	24
	4019	+
2344	4020		this limitation does not apply to the purc hase of investment
2345	4021		securities; or
2346		-
2347	4022		2. Engage in, or ac quire any interest in, any business
2348	4023		prohibited to a bank chartered under the laws of this state.
2349		-
2350	4024		G. The shareholders’ equity of an investment certificate issuer
2351	4025		shall not be less than ten percent (10%) of the investment
2352	4026		certificates outstanding. Provided , an investment certificate
2353	4027		issuer lawfully incorporated and operating in this state on or
2354	4028		before November 1, 1985, with less than the above specified
2355	4029		shareholders’ equity shall, at the beginning of eac h fiscal year
2356	4030		thereafter, increase its shareholders ’ equity by a minimum of one-
2357	4031		fourth (1/4) the difference between its shareholders’ equity on
2358	4032		November 1, 1985, and the above specified amount until such time as
2359	4033		its shareholders’ equity equals or exceeds t he amount specified
2360	4034		above. For purposes of computing the shareholders’ equity, the
2361	4035		reserve against bad debts shall be included.
2362		-
2363	4036		H. Every investment certificate issuer shall maintain a reserve
2364	4037		against bad debts in an amount required by the Administrator by rule
2365	4038		adopted and promulgated pursuant to the Adminis trative Procedures
2366	4039		Act, but in no event shall the reserve against bad debts be less
2367	4040		than two percent (2%) of total loans outstanding.
2368		-
2369		-
2370		-	ENR. S. B. NO. 1361 Page 55
2371	4041		I. If the Administrator finds the capital of an investment
2372	4042		certificate issuer to be impaired according to the standard se t
2373	4043		forth in subsection G of this section, the Administrator may:
	4044	+
	4045	+	SB1361 HFLR Page 80
	4046	+	BOLD FACE denotes Committee Amendments. 1
	4047	+	2
	4048	+	3
	4049	+	4
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	4063	+	18
	4064	+	19
	4065	+	20
	4066	+	21
	4067	+	22
	4068	+	23
	4069	+	24
2374	4070
2375	4071		1. Give notice of the i mpairment to the directors and
2376	4072		shareholders of the investment certificate issuer and levy an
2377	4073		assessment in a designated amount upon the holders of record of the
2378	4074		investment certificate issuer’s stock to remedy an impairment of
2379	4075		capital. Upon receipt of an o rder to levy an assessment, the
2380	4076		directors shall cause to be sent to all holders of stock, at their
2381	4077		addresses as listed on the books of the investment certificate
2382	4078		issuer, a notice of the amount of the assessment and a copy of this
2383	4079		subsection. If an assessm ent is not paid within ninety (90) days
2384	4080		after the order is mailed, the Administrator, at his or her
2385	4081		discretion, may offer the shares of the defaulting stockholders for
2386	4082		sale at public auction at a price which shall not be less than the
2387	4083		amount of the assessm ent and the cost of the sale; or
2388		-
2389	4084		2. Apply to the district court of any county where the assets
2390	4085		of the investment certificate issuer are located for an order
2391	4086		appointing a conservator of, and directing him to rehabilitate, the
2392	4087		investment certificate issuer. If all reasonable efforts to
2393	4088		rehabilitate the investment certificate issuer fail, the
2394	4089		Administrator may apply to the court for an order directing the
2395	4090		appointment of a liquidator to dissolve any such issuer and
2396	4091		liquidate its assets. All rights and intere sts of the stockholders
2397	4092		in the stock, property and assets of such investment certificate
2398	4093		issuer are thereby term inated except the rights of stockholders to
2399	4094		the proceeds of liquidation, if any, after all other valid claims,
	4095	+
	4096	+	SB1361 HFLR Page 81
	4097	+	BOLD FACE denotes Committee Amendments. 1
	4098	+	2
	4099	+	3
	4100	+	4
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	4102	+	6
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	4112	+	16
	4113	+	17
	4114	+	18
	4115	+	19
	4116	+	20
	4117	+	21
	4118	+	22
	4119	+	23
	4120	+	24
	4121	+
2400	4122		including interest, against the a ssets of the investment certificate
2401	4123		issuer and the proceeds of liquidation have been satisfied. The
2402	4124		conservator or liquidator appointed under this subsection shall mee t
2403	4125		qualifications established by the Administrator by rule adopted and
2404	4126		promulgated pursuant to the Administrative Procedures Act.
2405		-
2406	4127		J. Whenever the capital or reserve of any investment
2407	4128		certificate issuer shall be impaired according to the standards set
2408	4129		forth in subsections G and H of this section, the investment
2409	4130		certificate issuer shall make no new loans, renew any investment
2410	4131		certificates or sell new investment certificates without the consent
2411	4132		of the Administrator.
2412		-
2413		-
2414		-	ENR. S. B. NO. 1361 Page 56
2415	4133		K. 1. It shall be unlawful for any investm ent certificate
2416	4134		issuer to issue investment certificates when insolvent.
2417		-
2418	4135		2. Every officer, director, principal stockholder, or every
2419	4136		other person who materially participates or aids in the issuance o f
2420	4137		an investment certificate in violation of this subsecti on, or who
2421	4138		directly or indirectly controls any such person, shall be jointly
2422	4139		and severally liable, unless the officer, director, principal
2423	4140		stockholder, or any other person who so participates, aids o r
2424	4141		controls, sustains the burden of proof that the person did not know,
2425	4142		and could not have known, of the existence of the facts by reason of
2426	4143		which liability is alleged to exist. There shall be contribution as
2427	4144		in cases of contract among the persons so liabl e.
2428	4145
	4146	+	SB1361 HFLR Page 82
	4147	+	BOLD FACE denotes Committee Amendments. 1
	4148	+	2
	4149	+	3
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	4151	+	5
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	4153	+	7
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	4156	+	10
	4157	+	11
	4158	+	12
	4159	+	13
	4160	+	14
	4161	+	15
	4162	+	16
	4163	+	17
	4164	+	18
	4165	+	19
	4166	+	20
	4167	+	21
	4168	+	22
	4169	+	23
	4170	+	24
	4171	+
2429	4172		3. The rights and remedies provided for in this subse ction are
2430	4173		in addition to any other rights or remedies provided for in Title 71
2431	4174		of the Oklahoma Statutes, or that may exist at law or in equity.
2432		-
2433	4175		L. The Administrator may as often as he or she deems i t prudent
2434	4176		and necessary for the protection of the public, make or cause to be
2435	4177		made examinations of the books, records, papers, assets and
2436	4178		liabilities of every kind and character owned by, or relating to,
2437	4179		every investment certificate issuer.
2438		-
2439	4180		M. Every investment certificate issuer shall make and file with
2440	4181		the Administrator reports at such times and in such form as the
2441	4182		Administrator may prescribe by rule or order. The reports shall be
2442	4183		verified by the oath of either the president, the vice -president, or
2443	4184		the secretary and attested by the signature of two or more of the
2444	4185		directors. Each report shall exhibit in detail, as may be required
2445	4186		by the Administrator, the resources and liabilities of the
2446	4187		investment certificate issuer at the close of business on the day to
2447	4188		be specified by the Administrator.
2448		-
2449	4189		N. Every investment certificate issuer whose investor funds or
2450	4190		deposits are not insured by an agency of the government shall
2451	4191		disclose on the face of each investment certificate in ten -point
2452	4192		type the following:
2453		-
2454	4193		“This certificate is not insured by the Federal Deposit
2455	4194		Insurance Corporation or any other agency of the government.”
2456	4195
2457		-
2458		-	ENR. S. B. NO. 1361 Page 57
	4196	+	SB1361 HFLR Page 83
	4197	+	BOLD FACE denotes Committee Amendments. 1
	4198	+	2
	4199	+	3
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	4201	+	5
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	4218	+	22
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	4220	+	24
	4221	+
2459	4222		SECTION 20. AMENDATORY 71 O.S. 2021, Section 1-402, is
2460	4223		amended to read as follows:
2461		-
2462	4224		Section 1-402. A. It is unlawful for an ind ividual to transact
2463	4225		business in this state as an ag ent unless the individual is
2464	4226		registered under this act as an agent or is exempt f rom registration
2465	4227		as an agent under subsection B of this section.
2466		-
2467	4228		B. The following individuals are exempt from the registrat ion
2468	4229		requirement of subsection A of this section:
2469		-
2470	4230		1. An individual who represen ts a broker-dealer in effecting
2471	4231		transactions in this state limited to those described in Section
2472	4232		15(h)(2) 15(i)(3) of the Securities Exchange Act of 1934 (15 U.S.C .
2473	4233		Section 78o(h)(2) 78o(i)(3));
2474		-
2475	4234		2. An individual who represents a broker-dealer that is exempt
2476	4235		under subsection B or D of Section 18 1-401 of this act title;
2477		-
2478	4236		3. An individual who represents an issuer with respe ct to an
2479	4237		offer or sale of the issuer ’s own securities or those of the
2480	4238		issuer’s parent or any of the issuer ’s subsidiaries to existing
2481	4239		employees, partners, members or directors of the issuer or the
2482	4240		issuer’s parent or any of the issuer’s subsidiaries, and wh o is not
2483	4241		compensated in connection with the individual ’s participation by the
2484	4242		payment of commissions or other remuneration based, directl y or
2485	4243		indirectly, on transactions in those securities;
2486		-
2487	4244		4. An individual who represents an issuer and who effects
2488	4245		transactions in the issuer ’s securities exempted by Section 7 1-202
	4246	+
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	4248	+	BOLD FACE denotes Committee Amendments. 1
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	4272	+
2489	4273		of this act title, other than paragraphs 11 and 14 of Section 7 1-
2490	4274		202 of this act title;
2491		-
2492	4275		5. An individual who represents an issuer who effects
2493	4276		transactions solely in federal covered securities of the issuer, but
2494	4277		an individual who effects transaction s in a federal covered security
2495	4278		under Section 18(b)(3 ) or 18(b)(4)(D) 18(b)(4)(F) of the Securities
2496	4279		Act of 1933 (15 U.S.C. Section 77r(b)(3) or 77r(b)(4)(D)
2497	4280		77r(b)(4)(F)) is not exempt if the individual is compens ated in
2498	4281		connection with the agent ’s participation by the payment of
2499	4282		commissions or other remuneration based, directly or in directly, on
2500	4283		transactions in those securities;
2501		-
2502		-	ENR. S. B. NO. 1361 Page 58
2503		-
2504	4284		6. An individual who represents a broker-dealer registered in
2505	4285		this state under subsection A of Section 18 1-401 of this act title
2506	4286		or exempt under subsection B of Section 18 1-401 of this act title
2507	4287		in the offer and sale of securities for an account of a
2508	4288		nonaffiliated federal covered investment adviser with investments
2509	4289		under management in excess of One Hundred Million Dollars
2510	4290		($100,000,000.00) acting for the account of others pursuant to
2511	4291		discretionary authority in a signed record;
2512		-
2513	4292		7. An individual who represents an issue r in connection with
2514	4293		the purchase of the issuer ’s own securities;
2515		-
2516	4294		8. An individual who represe nts an issuer and who restricts
2517	4295		participation to performing ministerial o r clerical work; or
2518	4296
	4297	+	SB1361 HFLR Page 85
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	4299	+	2
	4300	+	3
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	4322	+
2519	4323		9. Any other individual exempted by rule adopted or order
2520	4324		issued under this act.
2521		-
2522	4325		C. The registration of an agent is effective only while the
2523	4326		agent is employed by or associated with a broker-dealer registered
2524	4327		under this act or an issuer that is offering, selling or purchasing
2525	4328		its securities in this state.
2526		-
2527	4329		D. It is unlawful for a broker-dealer, or an issuer engaged in
2528	4330		offering, selling, or purchasing securities in this state, to employ
2529	4331		or associate with an agent who transacts business i n this state on
2530	4332		behalf of broker-dealers or issuers unless the agent is registered
2531	4333		under subsection A of this section or exempt from registration under
2532	4334		subsection B of this section.
2533		-
2534	4335		E. Unless prohibited by rule adopted or order issued under this
2535	4336		act, an individual may act as an age nt for more than one broker-
2536	4337		dealer or more than one issuer at a time.
2537		-
2538	4338		F. It is unlawful for an individual acting as an agent,
2539	4339		directly or indirectly, to co nduct business in this state on behalf
2540	4340		of a broker-dealer or issuer if th e registration of the indiv idual
2541	4341		as an agent is suspended or revoked under this act; or the
2542	4342		individual is barred from employment or association with a broker -
2543	4343		dealer by an order under this act, the Securities and Exchange
2544	4344		Commission, or a self -regulatory organization; or the individu al is
2545		-
2546		-	ENR. S. B. NO. 1361 Page 59
2547	4345		subject to an order of a court of competent jurisdictio n
2548	4346		temporarily, preliminarily or permanently enjoining such individual
	4347	+
	4348	+	SB1361 HFLR Page 86
	4349	+	BOLD FACE denotes Committee Amendments. 1
	4350	+	2
	4351	+	3
	4352	+	4
	4353	+	5
	4354	+	6
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	4373	+
2549	4374		from conducting business in this state on behalf of a broker-dealer
2550	4375		or issuer.
2551		-
2552	4376		SECTION 21. AMENDATORY 71 O.S. 2021, Section 1-403, is
2553	4377		amended to read as follows:
2554		-
2555	4378		Section 1-403. A. It is unlawful for a person to transact
2556	4379		business in this state as an investment adviser unless the person is
2557	4380		registered under this act as an invest ment adviser or is exempt f rom
2558	4381		registration as an investment adviser under subsection B of this
2559	4382		section.
2560		-
2561	4383		B. The following persons are exempt from the registration
2562	4384		requirement of subsection A of this section:
2563		-
2564	4385		1. A federal covered investment adviser;
2565		-
2566	4386		2. A person without a place of business in this state that is
2567	4387		registered under the securities act of the state in which that
2568	4388		person has its principal place of business if its only clients in
2569	4389		this state are:
2570		-
2571	4390		a. federal covered investment advisers, investment
2572	4391		advisers registered under thi s act, or broker-dealers
2573	4392		registered under this act,
2574		-
2575	4393		b. institutional investors,
2576		-
2577	4394		c. bona fide preexisting clients whose principal places
2578	4395		of residence are not in this state if the investment
2579	4396		adviser is registered under the securiti es act of the
	4397	+
	4398	+	SB1361 HFLR Page 87
	4399	+	BOLD FACE denotes Committee Amendments. 1
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	4423	+
2580	4424		state in which the clients maintain principal places
2581	4425		of residence, or
2582		-
2583	4426		d. any other client exempted by rule adopted or order
2584	4427		issued under this act;
2585		-
2586	4428		3. A person without a place of business in this state if the
2587	4429		person has had, during the preced ing twelve (12) months, not more
2588		-
2589		-	ENR. S. B. NO. 1361 Page 60
2590	4430		than five clients that are residents of this state in addition to
2591	4431		those specified under paragraph 2 of this subsection; or
2592		-
2593	4432		4. Any other person exempted by rule adopted or order issued
2594	4433		under this act.
2595		-
2596	4434		C. It is unlawful for an investment adviser, dir ectly or
2597	4435		indirectly, to employ or associate with an individual to engage in
2598	4436		an activity related to investment advice in this state if the
2599	4437		registration of the individual is suspended or revoked under this
2600	4438		act, or the individual is barred from employment or association with
2601	4439		an investment adviser, federal covered investment adviser, or
2602	4440		broker-dealer by an order under this act, the Securities and
2603	4441		Exchange Commission, or a self -regulatory organization, unless the
2604	4442		investment adviser did not know, and in the exerc ise of reasonable
2605	4443		care could not have known, of the suspension, revocation, or bar.
2606	4444		Upon request from the investment adviser and for good cause, the
2607	4445		Administrator, by order, may waive, in whole or in part, the
2608	4446		application of the prohibitions of this subse ction to the investment
2609	4447		adviser.
2610	4448
	4449	+	SB1361 HFLR Page 88
	4450	+	BOLD FACE denotes Committee Amendments. 1
	4451	+	2
	4452	+	3
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	4473	+	24
	4474	+
2611	4475		D. It is unlawful for an investment adviser to employ or
2612	4476		associate with an individual required to be registered under this
2613	4477		act as an investment adviser representative who transacts business
2614	4478		in this state on behalf of the i nvestment adviser unless the
2615	4479		individual is registered under subsection A of Section 21 1-404 of
2616	4480		this act title or is exempt from registration un der subsection B of
2617	4481		Section 21 1-404 of this act title.
2618		-
2619	4482		E. The exemption from regist ration provided by subparagraph b
2620	4483		of paragraph 2 of subsection B of this section shall not be
2621	4484		available to any person who acts as an investment adviser to the
2622	4485		state, any county, municipality or school district of this state, or
2623	4486		any other political subdivis ion of this state; any agen cy or
2624	4487		corporate or other instrumentality of any such entity; or any
2625	4488		pension fund for the benefit of employees of any such entity , unless
2626	4489		registered with the Securities and Exchange Commission and the
2627	4490		Municipal Securities Rulemaki ng Board.
2628		-
2629	4491		SECTION 22. AMENDATORY 71 O.S. 2021, Section 1 -404, is
2630	4492		amended to read as follows:
2631		-
2632		-
2633		-	ENR. S. B. NO. 1361 Page 61
2634	4493		Section 1-404. A. It is unlawful for an individual to transa ct
2635	4494		business in this state as an investment adviser representative
2636	4495		unless the individual is registered u nder this act as an investment
2637	4496		adviser representative or is e xempt from registration as an
2638	4497		investment adviser representative under subsection B of this
2639	4498		section.
2640	4499
	4500	+	SB1361 HFLR Page 89
	4501	+	BOLD FACE denotes Committee Amendments. 1
	4502	+	2
	4503	+	3
	4504	+	4
	4505	+	5
	4506	+	6
	4507	+	7
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	4522	+	22
	4523	+	23
	4524	+	24
	4525	+
2641	4526		B. The following individuals are exempt from the registration
2642	4527		requirement of subsection A of this section:
2643		-
2644	4528		1. An individual who is employed by or associat ed with an
2645	4529		investment adviser that is exempt from registration un der subsection
2646	4530		B of Section 20 1-403 of this act title unless the individual has a
2647	4531		place of business in this state or is not a “supervised person” as
2648	4532		that term is defined in Section 202(a)(25 ) of the Investment
2649	4533		Advisers Act of 1940 (15 U.S.C . Section 80b-2(a)(25)); and
2650		-
2651	4534		2. Any other individual exempted by rule adopted or order
2652	4535		issued under this act.
2653		-
2654	4536		C. The registration of an investm ent adviser representative is
2655	4537		not effective while the investm ent adviser representative is not
2656	4538		employed by or associated with an investment adviser regis tered
2657	4539		under this act or a federal covered investment adviser that has made
2658	4540		or is required to make a notice filing under Section 22 1-405 of
2659	4541		this act title.
2660		-
2661	4542		D. An individual may transact business as an investment adviser
2662	4543		representative for more than one in vestment adviser or federal
2663	4544		covered investment adviser at a time unless a rule adopted or order
2664	4545		issued under this act prohibits or limits an individual from acting
2665	4546		as an investment adviser representative for more than one investment
2666	4547		adviser or federal cove red investment adviser.
2667		-
2668	4548		E. It is unlawful for an individual acting as an in vestment
2669	4549		adviser representative, directly or indirectly, to conduct business
	4550	+
	4551	+	SB1361 HFLR Page 90
	4552	+	BOLD FACE denotes Committee Amendments. 1
	4553	+	2
	4554	+	3
	4555	+	4
	4556	+	5
	4557	+	6
	4558	+	7
	4559	+	8
	4560	+	9
	4561	+	10
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	4563	+	12
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	4565	+	14
	4566	+	15
	4567	+	16
	4568	+	17
	4569	+	18
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	4571	+	20
	4572	+	21
	4573	+	22
	4574	+	23
	4575	+	24
	4576	+
2670	4577		in this state on behalf of an investment adviser or a federal
2671	4578		covered investment adviser if the registr ation of the individual as
2672	4579		an investment adviser representative is suspended or revoked; or the
2673	4580		individual is barred from employment or association with an
2674	4581		investment adviser or a federal covered investment adviser by an
2675	4582		order under this act, the Securities and Exchange Commission, or a
2676		-
2677		-	ENR. S. B. NO. 1361 Page 62
2678	4583		self-regulatory organization; or the individ ual is subject to an
2679	4584		order of a court of competent jurisdiction temporarily,
2680	4585		preliminarily or permanently enjoining such individual from
2681	4586		conducting business in this state on behalf of an investment adviser
2682	4587		or a federal covered investment adviser . Upon request from a
2683	4588		federal covered investment adviser and for good cause, the
2684	4589		Administrator, by order issued, may waive, in whole or in part, the
2685	4590		application of the requirements of this s ubsection to the federal
2686	4591		covered investment adviser.
2687		-
2688	4592		F. An investment adviser registered under this ac t, a federal
2689	4593		covered investment adviser that has filed a notice under Section 22
2690	4594		1-405 of this act title, or a broker-dealer registered under this
2691	4595		act is not required to employ or associate with an individual as an
2692	4596		investment adviser representative for the referral of investment
2693	4597		advisory clients so long as any compensation paid by such persons
2694	4598		for such referral is paid to an investment adviser registered u nder
2695	4599		this act, a federal covered investment adviser who has filed a
2696	4600		notice under Section 22 1-405 of this act title, or a broker-dealer
	4601	+
	4602	+	SB1361 HFLR Page 91
	4603	+	BOLD FACE denotes Committee Amendments. 1
	4604	+	2
	4605	+	3
	4606	+	4
	4607	+	5
	4608	+	6
	4609	+	7
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	4624	+	22
	4625	+	23
	4626	+	24
	4627	+
2697	4628		registered under this act with which the individual is employed or
2698	4629		associated as an investment adviser representative.
2699		-
2700	4630		SECTION 23. AMENDATORY 71 O.S. 2021, Section 1 -405, is
2701	4631		amended to read as follo ws:
2702		-
2703	4632		Section 1-405. A. Except with respect to a federal cove red
2704	4633		investment adviser described in subsection B of this section, it is
2705	4634		unlawful for a federal covered inve stment adviser to transact
2706	4635		business in this state as a federa l covered investment advise r
2707	4636		unless the federal covered investment adviser complies with
2708	4637		subsection C of this section.
2709		-
2710	4638		B. The following federal covered investment advisers are not
2711	4639		required to comply with subsection C of this section:
2712		-
2713	4640		1. A federal covered investment adviser without a place of
2714	4641		business in this state if its only clients in thi s state are:
2715		-
2716	4642		a. federal covered investment advisers, investment
2717	4643		advisers registered under this act, and bro ker-dealers
2718	4644		registered under this act,
2719		-
2720		-
2721		-	ENR. S. B. NO. 1361 Page 63
2722	4645		b. institutional investors,
2723		-
2724	4646		c. bona fide preexisting clients whose principal places
2725	4647		of residence are not in th is state, or
2726		-
2727	4648		d. other clients specified by rule adopted or order
2728	4649		issued under this act;
2729		-
2730	4650		2. A federal covered investment adviser without a place of
2731	4651		business in this sta te if the person has had, d uring the preceding
	4652	+
	4653	+	SB1361 HFLR Page 92
	4654	+	BOLD FACE denotes Committee Amendments. 1
	4655	+	2
	4656	+	3
	4657	+	4
	4658	+	5
	4659	+	6
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	4676	+	23
	4677	+	24
	4678	+
2732	4679		twelve (12) months, not more than five cl ients that are residents in
2733	4680		this state in addition to those specified under paragraph 1 of this
2734	4681		subsection; and
2735		-
2736	4682		3. Any other person excluded by rule adopted or order i ssued
2737	4683		under this act.
2738		-
2739	4684		C. A person acting as a federal covered investment adviser, not
2740	4685		excluded under subsection B of this section, shall file a notice
2741	4686		containing a consent to service of p rocess complying with Section 49
2742	4687		1-611 of this act title, such records as have been filed with the
2743	4688		Securities and Exchange Commission under the Investment A dvisers Act
2744	4689		of 1940 required by rule or order under this act, and the fee
2745	4690		specified in Section 50 1-612 of this act title.
2746		-
2747	4691		D. The notice under subsection C of this section becomes
2748	4692		effective upon its filing and expires at midnight on December 31
2749	4693		each year.
2750		-
2751	4694		SECTION 24. AMENDATORY 71 O.S. 2021, Section 1 -406, is
2752	4695		amended to read as follows:
2753		-
2754	4696		Section 1-406. A. A person shall register as a broker -dealer,
2755	4697		agent, investment advi ser, or investment adviser representative by
2756	4698		filing an application that contains:
2757		-
2758	4699		1. The information required for the filing of a uniform
2759	4700		application, a consent to service of p rocess complying with Section
2760	4701		49 1-611 of this act title, the fee specified in Section 50 1-612 of
	4702	+
	4703	+	SB1361 HFLR Page 93
	4704	+	BOLD FACE denotes Committee Amendments. 1
	4705	+	2
	4706	+	3
	4707	+	4
	4708	+	5
	4709	+	6
	4710	+	7
	4711	+	8
	4712	+	9
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	4724	+	21
	4725	+	22
	4726	+	23
	4727	+	24
	4728	+
2761	4729		this act title and any reasonable fees ch arged by the designee of
2762	4730		the Administrator for processing the filing; and
2763		-
2764		-
2765		-	ENR. S. B. NO. 1361 Page 64
2766	4731		2. Upon request by the Administrator, any other financial or
2767	4732		other information that the Admin istrator determines is appr opriate.
2768		-
2769	4733		B. If the information contained in an application t hat is filed
2770	4734		under subsection A of this section is or becomes inaccurate or
2771	4735		incomplete in any material respect, the registrant shall promptly
2772	4736		file a correcting amendmen t.
2773		-
2774	4737		C. If an order is not i n effect and a proceeding is not pending
2775	4738		under Section 28 1-411 of this act title, registration become s
2776	4739		effective at noon on the 45th da y after a completed application is
2777	4740		filed unless the registration is denied. A rule adopted o r order
2778	4741		issued under this act may set an earlier effective date or may defer
2779	4742		the effective date until noon on the 45th day after the filing of
2780	4743		any amendment comple ting the application.
2781		-
2782	4744		D. A registration is effective until midnight on December 31 of
2783	4745		the year for which the applicatio n for registration is filed.
2784	4746		Unless an order is in e ffect under Section 28 1-411 of this act
2785	4747		title, a registration may be automatically renewed each year by
2786	4748		filing such records as are required by rule adopted or order issued
2787	4749		under this act, by paying the fee specified in Section 50 1-612 of
2788	4750		this act title, and by paying costs charged by the designee of the
2789	4751		Administrator for proc essing the filings.
2790	4752
	4753	+	SB1361 HFLR Page 94
	4754	+	BOLD FACE denotes Committee Amendments. 1
	4755	+	2
	4756	+	3
	4757	+	4
	4758	+	5
	4759	+	6
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	4762	+	9
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	4764	+	11
	4765	+	12
	4766	+	13
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	4768	+	15
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	4778	+
2791	4779		E. A rule adopted or order issued under this act may impose
2792	4780		such other conditions not inconsistent with the N ational Securities
2793	4781		Markets Improvement Act of 1996. An order issued under this act may
2794	4782		waive, in whole or in part, specific r equirements in connection with
2795	4783		registration as are i n the public interest and for the protection of
2796	4784		investors.
2797		-
2798	4785		SECTION 25. AMENDATORY 71 O.S. 2021, Section 1 -407, is
2799	4786		amended to read as follows:
2800		-
2801	4787		Section 1-407. A. A broker-dealer or investment adviser may
2802	4788		succeed to the current registration of another broker -dealer or
2803	4789		investment adviser or a notice filing of a federal covered
2804	4790		investment adviser, and a federal covered i nvestment adviser may
2805	4791		succeed to the current registration of an investment adviser or
2806	4792		notice filing of another federal covered investment adviser, by
2807	4793		filing as a successor an application for registration pursuant to
2808		-
2809		-	ENR. S. B. NO. 1361 Page 65
2810	4794		Section 18 1-401 or 20 1-403 of this act title, or a notice pursuant
2811	4795		to Section 22 1-405 of this act title, for the unexpired portion of
2812	4796		the current registration or notice filing.
2813		-
2814	4797		B. A broker-dealer or investment adviser that changes its form
2815	4798		of organization or state of incorporation or organization may
2816	4799		continue its registration by filing an amendment to its registration
2817	4800		if the change does not involve a material change in its financial
2818	4801		condition or management . The amendment becomes effective when filed
2819	4802		or upon a date designated by the registrant in its filing. The new
	4803	+
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	4805	+	BOLD FACE denotes Committee Amendments. 1
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	4829	+
2820	4830		organization is a successor to the original registrant for the
2821	4831		purposes of this act. If there is a material change in financial
2822	4832		condition or management, the broker-dealer or investment adviser
2823	4833		shall file a new application for registration. Any predecessor
2824	4834		registered under this act shall stop conducting its securities
2825	4835		business other than winding down transactions and shall file for
2826	4836		withdrawal of broker-dealer or investment adviser registration
2827	4837		within forty-five (45) days after filing its amendment to effect
2828	4838		succession.
2829		-
2830	4839		C. A broker-dealer or investment adviser that changes its name
2831	4840		may continue its registration by filing an amendment to its
2832	4841		registration. The amendment becomes effective when filed or upon a
2833	4842		date designated by the registrant.
2834		-
2835	4843		D. A change of control of a broker -dealer or investment adviser
2836	4844		may be made in accordance with a rule adopted or order issued under
2837	4845		this act.
2838		-
2839	4846		SECTION 26. AMENDATORY 71 O.S. 2021, Section 1-408, is
2840	4847		amended to read as fol lows:
2841		-
2842	4848		Section 1-408. A. If an agent registered under this act
2843	4849		terminates employment by or association with a broker -dealer or
2844	4850		issuer, or if an investment adviser repr esentative registered under
2845	4851		this act terminates employment by or association with an investment
2846	4852		adviser or federal covered investment adviser, or if either
2847	4853		registrant terminates activities that require registration as an
	4854	+
	4855	+	SB1361 HFLR Page 96
	4856	+	BOLD FACE denotes Committee Amendments. 1
	4857	+	2
	4858	+	3
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	4880	+
2848	4881		agent or investment adviser represe ntative, the broker-dealer,
2849	4882		issuer, investment adviser, or federal covered investment adviser
2850	4883		shall promptly file a notice of termination. If the registrant
2851	4884		learns that the broker -dealer, issuer, investment adviser, or
2852		-
2853		-	ENR. S. B. NO. 1361 Page 66
2854	4885		federal covered investment adviser h as not filed the notice, th e
2855	4886		registrant may do so.
2856		-
2857	4887		B. If an agent registered under this act terminates employment
2858	4888		by or association with a broker -dealer registered under this act and
2859	4889		begins employment by or association with another broker-dealer
2860	4890		registered under this act; or if an investment adviser
2861	4891		representative registered under this act terminates employment by or
2862	4892		association with an investment adviser registered under this act ; or
2863	4893		a federal covered investment adviser tha t has filed a notice under
2864	4894		Section 22 1-405 of this act title, and begins employment by or
2865	4895		association with another investment adviser registered under this
2866	4896		act or a federal covered investment adviser that has filed a notice
2867	4897		under Section 22 1-405 of this act title; then upon the filing by or
2868	4898		on behalf of the regi strant, within thirty (30) days after the
2869	4899		termination, of an application for registration that complies with
2870	4900		the requirement of subsection A of Section 23 1-406 of this act
2871	4901		title, and payment of the filing fee required under Section 50 1-612
2872	4902		of this act title, the registration of the agent or investment
2873	4903		adviser representative, is:
2874	4904
	4905	+	SB1361 HFLR Page 97
	4906	+	BOLD FACE denotes Committee Amendments. 1
	4907	+	2
	4908	+	3
	4909	+	4
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	4930	+
2875	4931		1. Immediately effective as of th e date of the completed filing
2876	4932		if the agent’s Central Registration Depository record or successor
2877	4933		record or the invest ment adviser representative’s Investment Adviser
2878	4934		Registration Depository record or successor record does not contain
2879	4935		a new or amended disc iplinary disclosure within the previous twelve
2880	4936		(12) months; or
2881		-
2882	4937		2. Temporarily effective as of the date of the complet ed
2883	4938		filing, if the agent’s Central Registration Depository record or
2884	4939		successor record or the investment adviser representative’s
2885	4940		Investment Adviser Registration Depository record or successor
2886	4941		record contains a new or amended disciplinary disclosure within t he
2887	4942		preceding twelve (12) months.
2888		-
2889	4943		C. The Administrator may withdraw the temporary registration if
2890	4944		there are or were grounds for discipline under Section 28 1-411 of
2891	4945		this act title and the Administrator does so within thirty (30) days
2892	4946		after the filing of th e application. If the Admi nistrator does not
2893	4947		withdraw the temporary registration within the 30 day period,
2894	4948		registration becomes automatically effecti ve on the 31st day after
2895	4949		filing.
2896		-
2897		-	ENR. S. B. NO. 1361 Page 67
2898		-
2899	4950		D. The Administrator may prevent the effectiveness of a
2900	4951		transfer of an agent or investment adviser representative under
2901	4952		paragraph 1 or 2 of subsection B of this section based on the public
2902	4953		interest and the protection of in vestors.
	4954	+
	4955	+	SB1361 HFLR Page 98
	4956	+	BOLD FACE denotes Committee Amendments. 1
	4957	+	2
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	4977	+	22
	4978	+	23
	4979	+	24
2903	4980
2904	4981		E. If the Administrator determines that a registrant or
2905	4982		applicant for registration is no longer in existence or has ceased
2906	4983		to act as a broker-dealer, agent, investment adviser, or investment
2907	4984		adviser representative, or is the subject of an adjudic ation of
2908	4985		incapacity or is subject to the control of a committee, conservator,
2909	4986		or guardian, or cannot reaso nably be located, a rule ad opted or
2910	4987		order issued under this act may require the registration be canceled
2911	4988		or terminated or the application denied. The Administrator may
2912	4989		reinstate a canceled or terminated registration, with or without
2913	4990		hearing, and may make the registration retroactiv e.
2914		-
2915	4991		SECTION 27. AMENDATORY 71 O.S. 2021, Section 1-409, is
2916	4992		amended to read as follows:
2917		-
2918	4993		Section 1-409. Withdrawal of registration by a broker -dealer,
2919	4994		agent, investment advis er, or investment adviser repres entative
2920	4995		becomes effective sixty (60) days after the filing of the
2921	4996		application to withdr aw or within any shorter period as provided by
2922	4997		rule adopted or order issued under this act unless a revocation or
2923	4998		suspension proceeding is pending when the application is filed. If
2924	4999		a proceeding is pending, withdrawal becomes effective when and upon
2925	5000		such conditions as required by rule adopted or order issued under
2926	5001		this act. The Administrator may institute a revocation or
2927	5002		suspension proceeding under Section 28 1-411 of this act title
2928	5003		within one year after the withdrawal became effective automatically
2929	5004		and issue a revocation or suspension order as of the last date on
	5005	+
	5006	+	SB1361 HFLR Page 99
	5007	+	BOLD FACE denotes Committee Amendments. 1
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	5020	+	14
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	5023	+	17
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	5026	+	20
	5027	+	21
	5028	+	22
	5029	+	23
	5030	+	24
	5031	+
2930	5032		which registration was effective if a proceeding is not pending when
2931	5033		the application is filed.
2932		-
2933	5034		SECTION 28. AMENDATORY 71 O.S. 2021, Section 1-410, is
2934	5035		amended to read as follows:
2935		-
2936	5036		Section 1-410. A. Subject to Section 15(h) 15(i) of the
2937	5037		Securities Exchange Act of 1934 (15 U.S.C . Section 78o(h) 78o(i)) or
2938	5038		Section 222 of the Investment Advi sers Act of 1940 (15 U.S.C .
2939	5039		Section 80b-18a), a rule adopted or order issued und er this act may
2940		-
2941		-	ENR. S. B. NO. 1361 Page 68
2942	5040		establish minimum financial requirements for broker -dealers
2943	5041		registered or required to be registered under this act and
2944	5042		investment advisers registered or require d to be registered under
2945	5043		this act.
2946		-
2947	5044		B. Subject to Section 15(h) 15(i) of the Securities Exchange
2948	5045		Act of 1934 (15 U.S.C. Section 78o(h) 78o(i)) or Section 222 of the
2949	5046		Investment Advisers Act of 1940 (15 U.S.C. Section 80b-18a), a
2950	5047		broker-dealer registered or required to be registered under this act
2951	5048		and an investment adviser registered or require d to be registered
2952	5049		under this act shall file such financial reports as are required by
2953	5050		a rule adopted or order issued under this act. If the information
2954	5051		contained in a record filed under this s ubsection is or becomes
2955	5052		inaccurate or incomplete in a material respect, the registrant shall
2956	5053		promptly file a correcting amendment.
2957	5054
	5055	+	SB1361 HFLR Page 100
	5056	+	BOLD FACE denotes Committee Amendments. 1
	5057	+	2
	5058	+	3
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	5080	+
2958	5081		C. Subject to Section 15(h) 15(i) of the Securities Exchange
2959	5082		Act of 1934 (15 U.S.C . Section 78o(h) 78o(i)) or Section 222 of the
2960	5083		Investment Advisers Act of 1940 (15 U.S.C. Section 80b-18a):
2961		-
2962	5084		1. A broker-dealer registered or required to be registered
2963	5085		under this act and a n investment adviser registered or required to
2964	5086		be registered under this act shall ma ke and maintain the accoun ts,
2965	5087		correspondence, memoranda, papers, books, and other record s as
2966	5088		required by rule adopted or order issued under this act;
2967		-
2968	5089		2. Broker-dealer records required to be maintained under
2969	5090		paragraph 1 of this subsection may be maintained in any form of data
2970	5091		storage acceptable under Section 17(a) of the Securities Exchange
2971	5092		Act of 1934 (15 U.S.C. Section 78q(a)) if they are readily
2972	5093		accessible to the Administ rator; and
2973		-
2974	5094		3. Investment adviser records required to be maintained under
2975	5095		paragraph 1 of this subsection may b e maintained in any form of data
2976	5096		storage required by rule adop ted or order issued under this act.
2977		-
2978	5097		D. The records of a broker -dealer registered or required to be
2979	5098		registered under this act and an investment adviser registered or
2980	5099		required to be registered un der this act are subject to such
2981	5100		reasonable periodic, special, or other audits or inspections by a
2982	5101		representative of the Administrator, within or without this state,
2983	5102		as the Administrator considers necessary or appropriate in the
2984		-
2985		-	ENR. S. B. NO. 1361 Page 69
2986	5103		public interest and for the protection of investors. An audit or
2987	5104		inspection may be made at any time and without prior notice. The
	5105	+
	5106	+	SB1361 HFLR Page 101
	5107	+	BOLD FACE denotes Committee Amendments. 1
	5108	+	2
	5109	+	3
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	5128	+	22
	5129	+	23
	5130	+	24
	5131	+
2988	5132		Administrator may copy, and remove for au dit or inspection copies
2989	5133		of, all records the Administrator reasonably considers nece ssary or
2990	5134		appropriate to conduct the audit or inspection. The Administrator
2991	5135		may assess a reasonable charge for conducting an audit or inspection
2992	5136		under this subsection.
2993		-
2994	5137		E. Subject to Section 15(h) 15(i) of the Securities Exchange
2995	5138		Act of 1934 (15 U.S.C . Section 78o(h) 78o(i)) or Section 222 of the
2996	5139		Investment Advisers Act of 1940 (15 U.S.C . Section 80b-18a), an
2997	5140		agent may not have custody of funds or securities of a customer
2998	5141		except under the supervision of a broker -dealer and an investment
2999	5142		adviser representati ve may not have custody o f funds or securities
3000	5143		of a client except under the supervision of an investment adviser or
3001	5144		federal covered investment adviser. A rule adopted or order issued
3002	5145		under this act may prohibit, limit, or impose conditions on a
3003	5146		broker-dealer regarding custody of f unds or securities of a customer
3004	5147		and on an investment adviser regarding custody of securities or
3005	5148		funds of a client.
3006		-
3007	5149		F. With respect to an investment adviser r egistered or required
3008	5150		to be registered under this act, a rule adopted o r order issued
3009	5151		under this act may require that information be furnished or
3010	5152		disseminated to clients or prospective clients in this state as
3011	5153		necessary or appropriate in the public interes t and for the
3012	5154		protection of investors and advisory clients.
	5155	+
	5156	+	SB1361 HFLR Page 102
	5157	+	BOLD FACE denotes Committee Amendments. 1
	5158	+	2
	5159	+	3
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	5176	+	20
	5177	+	21
	5178	+	22
	5179	+	23
	5180	+	24
3013	5181
3014	5182		G. A rule adopted or order issued un der this act may require
3015	5183		any individual registered under Secti on 19 1-402 or 21 1-404 of this
3016	5184		act title to participate in a continuing education program which is
3017	5185		approved by the Securities and Exchange Commission and administered
3018	5186		by a self-regulatory organization or, in the absence of such a
3019	5187		program, a rule adopted o r order issued under this act may require
3020	5188		continuing education for an indivi dual registered under Section 21
3021	5189		1-404 of this act title.
3022		-
3023	5190		SECTION 29. AMENDATORY 71 O.S. 2 021, Section 1-411, is
3024	5191		amended to read as follows:
3025		-
3026	5192		Section 1-411. A. If the Administrator finds that t he order is
3027	5193		in the public interest and subsection D of this section authorizes
3028		-
3029		-	ENR. S. B. NO. 1361 Page 70
3030	5194		the action, an order issued under this act may den y an application,
3031	5195		or may condition or limit registration:
3032		-
3033	5196		1. Of an applicant to be a br oker-dealer, agent, investment
3034	5197		adviser, or investment adviser representative; and
3035		-
3036	5198		2. If the applicant is a broker -dealer or investment adviser,
3037	5199		any partner, officer, o r director, any person hav ing a similar
3038	5200		status or performing similar functions, or any p erson directly or
3039	5201		indirectly controllin g the broker-dealer or investment adviser.
3040		-
3041	5202		B. If the Administrator finds that the order issued is in the
3042	5203		public interest and sub section D of this section authorizes the
3043	5204		action an order issued under this act may revok e, suspend,
3044	5205		condition, or limit the reg istration of a registrant and if the
	5206	+
	5207	+	SB1361 HFLR Page 103
	5208	+	BOLD FACE denotes Committee Amendments. 1
	5209	+	2
	5210	+	3
	5211	+	4
	5212	+	5
	5213	+	6
	5214	+	7
	5215	+	8
	5216	+	9
	5217	+	10
	5218	+	11
	5219	+	12
	5220	+	13
	5221	+	14
	5222	+	15
	5223	+	16
	5224	+	17
	5225	+	18
	5226	+	19
	5227	+	20
	5228	+	21
	5229	+	22
	5230	+	23
	5231	+	24
	5232	+
3045	5233		registrant is a broker -dealer or investment adviser, any partner,
3046	5234		officer, or director, any person having a similar st atus or
3047	5235		performing similar functions, or any person directly o r indirectly
3048	5236		controlling the broker-dealer or investment adviser. However, the
3049	5237		Administrator:
3050		-
3051	5238		1. May not institute a revocation or suspension pr oceeding
3052	5239		under this subsection based on an order issued by another state that
3053	5240		is reported to the Administrator or designee later than one year
3054	5241		after the date of the order on which it is based; and
3055		-
3056	5242		2. Under subparagraphs a and b of paragraph 5 of subsection D
3057	5243		of this section may not issue an order on th e basis of an order
3058	5244		under the state securities act of another state unless the other
3059	5245		order was based on conduct for which subsection D of this section
3060	5246		would authorize the action had the conduct occurred in th is state.
3061		-
3062	5247		C. If the Administrator finds that th e order is in the public
3063	5248		interest and paragraphs 1 through 6, 8, 9, 10, 12 or 13 of
3064	5249		subsection D of this section authorizes the action, an order under
3065	5250		this act may censure, impose a bar, impose a civil penalt y in an
3066	5251		amount not to exceed a maximum of Five Thousand Dollars ($5,000.00)
3067	5252		for a single violation or Two Hund red Fifty Thousand Dollars
3068	5253		($250,000.00) for multiple violations on a registrant, and/or
3069	5254		recover the costs of the investigation from a registrant and if the
3070	5255		registrant is a broker-dealer or investment adviser, from any
3071	5256		partner, officer, or director, any pe rson having a similar function
3072	5257
3073		-	ENR. S. B. NO. 1361 Page 71
	5258	+	SB1361 HFLR Page 104
	5259	+	BOLD FACE denotes Committee Amendments. 1
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	5276	+	18
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	5278	+	20
	5279	+	21
	5280	+	22
	5281	+	23
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	5283	+
3074	5284		or any person directly or indirectly controlling the broker -dealer
3075	5285		or investment adviser.
3076		-
3077	5286		D. A person may be disci plined under subsectio ns A through C of
3078	5287		this section if the person:
3079		-
3080	5288		1. Has filed an application for registrat ion in this state
3081	5289		under this act or the predecessor act within the previous ten (10)
3082	5290		years, which, as of the effective date of registration or as of any
3083	5291		date after filing in the case of an order denying effectiveness, was
3084	5292		incomplete in any material respect or contained a statement that, in
3085	5293		light of the circumstances under which it was made, was false or
3086	5294		misleading with respect to a material fact;
3087		-
3088	5295		2. Has willfully violated or willfully failed to comply with
3089	5296		this act or the predecessor act or a rule adopted or order issued
3090	5297		under this act or the predecessor act within the previous ten (10)
3091	5298		years;
3092		-
3093	5299		3. Has been convicted of any felony or within the prev ious ten
3094	5300		(10) years has been convicted of a misd emeanor involving a security,
3095	5301		a commodity futures or option con tract, or an aspect of a business
3096	5302		involving securities, commodities, investments, franchises,
3097	5303		insurance, banking, or finance;
3098		-
3099	5304		4. Is enjoined or restrained by a court o f competent
3100	5305		jurisdiction in an action instituted by the Administrator under this
3101	5306		act or a predecessor act, a state, the Securi ties and Exchange
3102	5307		Commission, or the United States from engaging in or continuing an
	5308	+
	5309	+	SB1361 HFLR Page 105
	5310	+	BOLD FACE denotes Committee Amendments. 1
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	5312	+	3
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	5332	+	23
	5333	+	24
	5334	+
3103	5335		act, practice, or cour se of business involvin g an aspect of a
3104	5336		business involving securities, commodities, investments, franchises,
3105	5337		insurance, banking, or finance;
3106		-
3107	5338		5. Is the subject of an order, issued after notice and
3108	5339		opportunity for hearing by:
3109		-
3110	5340		a. the securities, depository i nstitution, insurance o r
3111	5341		other financial service s regulator of a state, or by
3112	5342		the Securities and Exchange Commi ssion or other
3113	5343		federal agency denying, revoking, barring, or
3114	5344		suspending registration as a broker -dealer, agent,
3115		-
3116		-	ENR. S. B. NO. 1361 Page 72
3117	5345		investment adviser, federal cover ed investment
3118	5346		adviser, or investment adviser rep resentative,
3119		-
3120	5347		b. the securities regulator of a state or by the
3121	5348		Securities and Exchange Commission agai nst a broker-
3122	5349		dealer, agent, investment adviser, investment adviser
3123	5350		representative, or federal covered inves tment adviser,
3124		-
3125	5351		c. the Securities and Exchange Co mmission or by a self-
3126	5352		regulatory organization suspending, barri ng, canceling
3127	5353		or expelling the registr ant from membership in a self -
3128	5354		regulatory organization ,
3129		-
3130	5355		d. a court adjudicating a United States Postal Servi ce
3131	5356		fraud,
	5357	+
	5358	+	SB1361 HFLR Page 106
	5359	+	BOLD FACE denotes Committee Amendments. 1
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3132	5383
3133	5384		e. the insurance regulator of a state denying,
3134	5385		suspending, or revoking the registration of an
3135	5386		insurance agent, or
3136		-
3137	5387		f. a depository instituti on regulator suspending or
3138	5388		barring a person from the banking or depository
3139	5389		institution business;
3140		-
3141	5390		6. Is the subject of an adjudica tion or determination, af ter
3142	5391		notice and opportunity for hearing, by the Securities and E xchange
3143	5392		Commission, the Commodity Futu res Trading Commission, the Federal
3144	5393		Trade Commission, a federal depository institution regulator, or a
3145	5394		depository institution, ins urance, or other financia l services
3146	5395		regulator of a state that the person willfully viola ted the
3147	5396		Securities Act of 1933, the S ecurities Exchange Act of 1934, the
3148	5397		Investment Advisers Act of 1940, the Investment Company Act of 1940,
3149	5398		or the Commodity Exchange Act, the securities or c ommodities law of
3150	5399		a state, or a federal or state law under which a business involving
3151	5400		investments, franchises, insurance, banking, or finance is
3152	5401		regulated;
3153		-
3154	5402		7. Is insolvent, either because the person ’s liabilities exceed
3155	5403		the person’s assets or because the person cannot meet the person’s
3156	5404		obligations as they mature, but the Administrator may not enter an
3157	5405		order against an applicant or registrant under this paragraph
3158	5406		without a finding of insolvency as to the appli cant or registrant;
3159	5407
3160		-	ENR. S. B. NO. 1361 Page 73
	5408	+	SB1361 HFLR Page 107
	5409	+	BOLD FACE denotes Committee Amendments. 1
	5410	+	2
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	5430	+	22
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	5432	+	24
3161	5433
3162	5434		8. Refuses to allow or othe rwise impedes the Administrator from
3163	5435		conducting an audit or insp ection under subsection D of Section 27
3164	5436		1-410 of this act title or refuses access to any registrant ’s office
3165	5437		to conduct an audit or inspection un der subsection D of Section 27
3166	5438		1-410 of this act title;
3167		-
3168	5439		9. Has failed to reasonably supervise an agent, invest ment
3169	5440		adviser representative, or other individual, if the agent,
3170	5441		investment adviser representative, or other individual was subject
3171	5442		to the person’s supervision and commi tted a violation of this act or
3172	5443		the predecessor act or a rule adopted or order issued un der this act
3173	5444		or the predecessor act within the previous ten (10) years;
3174		-
3175	5445		10. Has not paid the proper filing fee within thirty (30) days
3176	5446		after having been notified by th e Administrator of a def iciency, but
3177	5447		the Administrator shall vacate an order under this paragraph when
3178	5448		the deficiency is corr ected;
3179		-
3180	5449		11. After notice and opportunity for a hearing, has been found
3181	5450		within the previous ten (10) years:
3182		-
3183	5451		a. by a court of compete nt jurisdiction to have willfully
3184	5452		violated the laws of a foreign jurisdiction under
3185	5453		which the business of securities, commodities,
3186	5454		investment, franchises, insurance, banking or finance
3187	5455		is regulated,
3188		-
3189	5456		b. to have been the subject of an order of a securities
3190	5457		regulator of a foreign ju risdiction denying, revoking,
	5458	+
	5459	+	SB1361 HFLR Page 108
	5460	+	BOLD FACE denotes Committee Amendments. 1
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	5479	+	20
	5480	+	21
	5481	+	22
	5482	+	23
	5483	+	24
	5484	+
3191	5485		or suspending the right to engage in the business of
3192	5486		securities as a broker-dealer, agent, investment
3193	5487		adviser, investment adviser representative or similar
3194	5488		person, or
3195		-
3196	5489		c. to have been suspended or expell ed from membership by
3197	5490		or participation in a securities exchange or
3198	5491		securities associatio n operating under the securities
3199	5492		laws of a foreign jurisdiction;
3200		-
3201	5493		12. Is the subject of a cease and desist order issued by the
3202	5494		Securities and Exchange Commission or iss ued under the securities ,
3203		-
3204		-	ENR. S. B. NO. 1361 Page 74
3205	5495		commodities, investment, franchise, banking, finance or insura nce
3206	5496		laws of a state;
3207		-
3208	5497		13. Has engaged in dishonest or unethical practices in the
3209	5498		securities, commodities, investment, franchise, banking, finance or
3210	5499		insurance business within the previous ten (10) years; or
3211		-
3212	5500		14. Is not qualified on the basis of factors suc h as training,
3213	5501		experience, and knowle dge of the securities business. However, in
3214	5502		the case of an application by an agent for a broker -dealer that is a
3215	5503		member of a self-regulatory organization or by an individual for
3216	5504		registration as an investment adviser re presentative, a denial order
3217	5505		may not be based on this paragraph if the individual has
3218	5506		successfully completed all examinations required by subsection E of
3219	5507		this section. The Administrator may r equire an applicant for
3220	5508		registration under Section 19 1-402 or 21 1-404 of this act title
	5509	+
	5510	+	SB1361 HFLR Page 109
	5511	+	BOLD FACE denotes Committee Amendments. 1
	5512	+	2
	5513	+	3
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	5517	+	7
	5518	+	8
	5519	+	9
	5520	+	10
	5521	+	11
	5522	+	12
	5523	+	13
	5524	+	14
	5525	+	15
	5526	+	16
	5527	+	17
	5528	+	18
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	5530	+	20
	5531	+	21
	5532	+	22
	5533	+	23
	5534	+	24
	5535	+
3221	5536		who has not been registered in a state within the two (2) years
3222	5537		preceding the filing of an application in this state to successfully
3223	5538		complete an examination.
3224		-
3225	5539		E. A rule adopted or order issued under this act may require
3226	5540		that an examination, including an examination d eveloped or approved
3227	5541		by an organization of securities regulators, be successfully
3228	5542		completed by a class of individuals or all indivi duals. An order
3229	5543		issued under this act may waive, in whole or in part, an examination
3230	5544		as to an individual and a rule adopted under this act may waive, in
3231	5545		whole or in part, an examination as to a class of individuals if the
3232	5546		Administrator determines that the examination is not necessary or
3233	5547		appropriate in the public interest and for the prote ction of
3234	5548		investors.
3235		-
3236	5549		F. The Administrator may summarily postpone an application or
3237	5550		summarily suspend a registration before final determination of an
3238	5551		administrative proceed ing. Upon the issuance of the order, the
3239	5552		Administrator shall promptly notify each pe rson subject to the order
3240	5553		that the order has been issued, the reasons for the action, and that
3241	5554		within fifteen (15) days after the receipt of a request in a record
3242	5555		from the person the matter will be scheduled for a hearing and such
3243	5556		hearing shall be commence d within fifteen (15) days of the matter
3244	5557		being set for hearing. If a hearing is not requested and none is
3245	5558		ordered by the Administrator , within thirty (30) days after the date
3246	5559		of service of the order, the order becomes final by operation of
3247	5560
3248		-	ENR. S. B. NO. 1361 Page 75
	5561	+	SB1361 HFLR Page 110
	5562	+	BOLD FACE denotes Committee Amendments. 1
	5563	+	2
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	5586	+
3249	5587		law. If a hearing is requested or ordered, the Adminis trator, after
3250	5588		notice of and opportunity for hearing to each person subject to the
3251	5589		order, may modify or vacate the order or extend t he order until
3252	5590		final determination.
3253		-
3254	5591		G. An order may not be issued under this section , except under
3255	5592		subsection F of this section, without:
3256		-
3257	5593		1. Appropriate notice to the applicant or registrant;
3258		-
3259	5594		2. Opportunity for hearing; and
3260		-
3261	5595		3. Findings of fact and conc lusions of law in a record in
3262	5596		accordance with the Administrative Procedures Act. If the person to
3263	5597		whom the notice is address ed does not request a hearing within
3264	5598		fifteen (15) thirty (30) days after the date of service of the
3265	5599		notice is effective, a final order as provided in subsection A, B or
3266	5600		C of this section may be issued.
3267		-
3268	5601		H. A person who controls, directly or indirectly, a person not
3269	5602		in compliance with this section may be disciplined by order of the
3270	5603		Administrator under subsections A through C of this section to the
3271	5604		same extent as the noncomplying person, unless the controlling
3272	5605		person did not know, and in the exercise of reasonable car e could
3273	5606		not have known, of the existence of conduct that is the basis for
3274	5607		discipline under this section.
3275		-
3276	5608		I. The Administrator may not institute a proc eeding under
3277	5609		subsection A, B or C of this section based sol ely on material facts
3278	5610		actually known by the Ad ministrator unless an investigation or the
	5611	+
	5612	+	SB1361 HFLR Page 111
	5613	+	BOLD FACE denotes Committee Amendments. 1
	5614	+	2
	5615	+	3
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	5636	+	24
	5637	+
3279	5638		proceeding is instituted within one year after the Administrator
3280	5639		actually knew the material facts.
3281		-
3282	5640		SECTION 30. AMENDATORY 71 O.S. 2021, Section 1-504, is
3283	5641		amended to read as follows:
3284		-
3285	5642		Section 1-504. A. Except as otherwise provided in subsection B
3286	5643		of this section, it is unlawful for a person to distribut e a
3287	5644		prospectus, pamphlet, circular, form letter, advertisement, sales
3288	5645		literature, or other ad vertising communication relating to a
3289	5646		security or investment advice, addressed or intended for
3290	5647		distribution to prospective investors, including clients or
3291		-
3292		-	ENR. S. B. NO. 1361 Page 76
3293	5648		prospective clients of a person registered or required to be
3294	5649		registered as an investment adviser unde r this act, unless the sales
3295	5650		and advertising literature is first filed with the Department with
3296	5651		the fee specified in Section 50 1-612 of this act title and the
3297	5652		Department has responded indicating that the Administrator has no
3298	5653		objection to its distribution o r use.
3299		-
3300	5654		B. This section does not apply to sales and advertising
3301	5655		literature specified in subsection A of this section relating to a
3302	5656		federal covered security, a federal c overed investment adviser, or a
3303	5657		security or transaction exempted by Section 6, 7, 1-201, 1-202, or 8
3304	5658		1-203 of this act title except as may be required pursuant to
3305	5659		paragraph 7 of Section 6 1-201 of this act title.
3306		-
3307	5660		SECTION 31. AMENDATORY 71 O.S. 2021, Section 1 -508, is
3308	5661		amended to read as follows:
	5662	+
	5663	+	SB1361 HFLR Page 112
	5664	+	BOLD FACE denotes Committee Amendments. 1
	5665	+	2
	5666	+	3
	5667	+	4
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3309	5688
3310	5689		Section 1-508. A. A person who willfully violates this act, or
3311	5690		a rule adopted or order issued under this a ct, except Section 32 1-
3312	5691		504 of this act title or the notice filing requirements of Section
3313	5692		11 1-302 or 22 1-405 of this act title, or that willfully violates
3314	5693		Section 33 1-505 of this act title knowing the statement made to be
3315	5694		false or misleading in a material respect, upon conviction, shall be
3316	5695		fined not more than One Hundred Thousand Dollars ($100,000.00) or
3317	5696		imprisoned not more than ten (10) years, or both such fine and
3318	5697		imprisonment. An individual convicted of violating a rule adopted
3319	5698		or order issued under this act may be fined, but may not be
3320	5699		imprisoned, if the individual did not have k nowledge of the rule or
3321	5700		order.
3322		-
3323	5701		B. This act does not limit the power of this state to pu nish a
3324	5702		person for conduct that constitutes a crime under oth er laws of this
3325	5703		state.
3326		-
3327	5704		C. On a criminal matter referred by the Adm inistrator, the
3328	5705		prosecuting attorney may designate and appoint one or more lawyers
3329	5706		of the Department as special assistants as ava ilable for the purpose
3330	5707		of assisting in or conducting a crimi nal prosecution arising by
3331	5708		reason of an investigation or proceeding under this section.
3332		-
3333	5709		SECTION 32. AMENDATORY 7 1 O.S. 2021, Section 1-509, is
3334	5710		amended to read as follows:
3335	5711
3336		-	ENR. S. B. NO. 1361 Page 77
	5712	+	SB1361 HFLR Page 113
	5713	+	BOLD FACE denotes Committee Amendments. 1
	5714	+	2
	5715	+	3
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3337	5737
3338	5738		Section 1-509. A. Enforcement of civil liability under this
3339	5739		section is subject to the Securities Litigation Uniform Standards
3340	5740		Act of 1998.
3341		-
3342	5741		B. A person is liable to a purchaser if the person sell s a
3343	5742		security in violation of Section 10 1-301 of this section title, or
3344	5743		by means of an untrue statement of a m aterial fact or an omission to
3345	5744		state a material fact necessary in order to make the statement made,
3346	5745		in light of the circumstances under which it i s made, not
3347	5746		misleading, the purchaser not knowing the unt ruth or omission, and
3348	5747		the seller not sustaining the b urden of proof that the seller did
3349	5748		not know and, in the exercise of reasonable care, could not have
3350	5749		known of the untruth or omission. An action u nder this subsection
3351	5750		is governed by the following:
3352		-
3353	5751		1. The purchaser may maintain an action at law or in equit y to
3354	5752		recover the consideration paid for the security, and interest at the
3355	5753		legal rate of interest per year from the da te of the purchase, less
3356	5754		the amount of any income received on the security, plus costs , and
3357	5755		reasonable attorneys’ fees determined by the co urt, upon the tender
3358	5756		of the security, or for actual damages as provided in paragraph 3 of
3359	5757		this subsection.
3360		-
3361	5758		2. The tender referred to in paragraph 1 of this subsection may
3362	5759		be made any time before entry o f judgment. Tender requires only
3363	5760		notice in a record of ownership of the security and willingness to
3364	5761		exchange the security for the amount specified. A purchaser that no
	5762	+
	5763	+	SB1361 HFLR Page 114
	5764	+	BOLD FACE denotes Committee Amendments. 1
	5765	+	2
	5766	+	3
	5767	+	4
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	5769	+	6
	5770	+	7
	5771	+	8
	5772	+	9
	5773	+	10
	5774	+	11
	5775	+	12
	5776	+	13
	5777	+	14
	5778	+	15
	5779	+	16
	5780	+	17
	5781	+	18
	5782	+	19
	5783	+	20
	5784	+	21
	5785	+	22
	5786	+	23
	5787	+	24
	5788	+
3365	5789		longer owns the security may recover actual damages as provided in
3366	5790		paragraph 3 of this subsection.
3367		-
3368	5791		3. Actual damages in an action arising under this subsection
3369	5792		are the amount that would be recoverable upon a tender, less the
3370	5793		value of the security when the purchaser disposed of it, an d
3371	5794		interest at the legal rate of interest per year from th e date of
3372	5795		purchase, costs, and reasonable attorneys ’ fees determined by the
3373	5796		court.
3374		-
3375	5797		C. A person is liable to the seller if the person buys a
3376	5798		security by means of an untru e statement of a material fac t or
3377	5799		omission to state a material fact necessary in order to make the
3378	5800		statement made, in light of the circumst ances under which it is
3379		-
3380		-	ENR. S. B. NO. 1361 Page 78
3381	5801		made, not misleading, the seller not knowing of the untruth or
3382	5802		omission, and the purchaser no t sustaining the burden of pr oof that
3383	5803		the purchaser did not know, and in the exercise of reasonable care,
3384	5804		could not have known of the untru th or omission. An action under
3385	5805		this subsection is governed by the following:
3386		-
3387	5806		1. The seller may maintain an action at law or in equity to
3388	5807		recover the security, and any income received on the security,
3389	5808		costs, and reasonable attorney’s fees determined by t he court, upon
3390	5809		the tender of the purchase price, or for actual damages as provided
3391	5810		in paragraph 3 of this subsection.
3392		-
3393	5811		2. The tender referred to i n paragraph 1 of this subsection may
3394	5812		be made any time bef ore entry of judgment. Tender requires only
	5813	+
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	5838	+	24
	5839	+
3395	5840		notice in a record of the present ability to pay the amount tendered
3396	5841		and willingness to take delivery of the security for the amount
3397	5842		specified. If the pu rchaser no longer owns the security, the seller
3398	5843		may recover actual damages as provided in paragraph 3 of this
3399	5844		subsection.
3400		-
3401	5845		3. Actual damages in an action arising under this subsection
3402	5846		are the difference between the price at whi ch the security was sold
3403	5847		and the value the security would have had at the time of the sale in
3404	5848		the absence of the purchaser’s conduct causing liability, and
3405	5849		interest at the legal rate of interest per year from the date of the
3406	5850		sale of the security, costs, an d reasonable attorneys ’ fees
3407	5851		determined by the court.
3408		-
3409	5852		D. A person acting as a broker -dealer or agent that sells or
3410	5853		buys a security in viol ation of subsection A of Section 18 1-401,
3411	5854		subsection A of Section 19 1-402, or Section 34 1-506 of this act
3412	5855		title is liable to the customer. The customer, if a purchaser, may
3413	5856		maintain an action at law or in equity for recovery of actual
3414	5857		damages as specified in paragraphs 1 through 3 of subsection B of
3415	5858		this section; or, if a seller, a remedy as specified in paragraphs 1
3416	5859		through 3 of subsection C of this section.
3417		-
3418	5860		E. A person acting as an investment adviser or investment
3419	5861		adviser representative that provides investment advice for
3420	5862		compensation in violation of subsection A of Section 20 1-403,
3421	5863		subsection A of Section 21 1-404, or Section 34 1-506 of this act
	5864	+
	5865	+	SB1361 HFLR Page 116
	5866	+	BOLD FACE denotes Committee Amendments. 1
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	5868	+	3
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	5870	+	5
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	5890	+
3422	5891		title is liable to the client. The client may mainta in an action at
3423		-
3424		-	ENR. S. B. NO. 1361 Page 79
3425	5892		law or in equity to recover th e consideration paid for the advice,
3426	5893		interest at the legal rate of interest per year from the date of
3427	5894		payment, costs, and reasonable attorney’s fees determined by the
3428	5895		court.
3429		-
3430	5896		F. A person that receives directly or indirectly any
3431	5897		consideration for providing investment advice to another person and
3432	5898		that employs a device, scheme, or artifice to defraud the other
3433	5899		person or engages in an act, practice, or cours e of business that
3434	5900		operates or would operate as a fraud or deceit on the other person,
3435	5901		is liable to the other person. An action under this subsection is
3436	5902		governed by the following:
3437		-
3438	5903		1. The person defrauded may maintain an actio n to recover the
3439	5904		consideration paid for the advice and the amount of any actual
3440	5905		damages caused by the fraudulent conduct, interest at the legal rate
3441	5906		of interest per year from the date of the fraudulent conduct, costs,
3442	5907		and reasonable attorney ’s fees determined by the court, less the
3443	5908		amount of any income received as a result of the fraudulent c onduct.
3444		-
3445	5909		2. This subsection does not apply to a broker-dealer or its
3446	5910		agents, if the investment advi ce is solely incidental to the conduct
3447	5911		of business as a broker -dealer and no special compensation is
3448	5912		received for the investment advice.
3449	5913
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	5939	+
3450	5940		G. The following persons are liable jointly and severally with
3451	5941		and to the same extent as persons liable under subsecti ons B through
3452	5942		F of this section:
3453		-
3454	5943		1. A person that directly or indire ctly controls a person
3455	5944		liable under subsections B through F of this section, unless the
3456	5945		controlling person sustains the burden of proo f that the person did
3457	5946		not know, and in the exercise o f reasonable care could not have
3458	5947		known, of the existence of the conduct by reason of which the
3459	5948		liability is alleged to exist;
3460		-
3461	5949		2. An individual who is a mana ging partner, executive officer,
3462	5950		or director of a person liable under subsections B through F of this
3463	5951		section, including an individual having a similar status or
3464	5952		performing similar functions, unles s the individual sustains the
3465	5953		burden of proof that the indi vidual did not know and, in the
3466		-
3467		-	ENR. S. B. NO. 1361 Page 80
3468	5954		exercise of reasonable care could not have known, of the existence
3469	5955		of the conduct by reason of which the liability is alleged to exist;
3470		-
3471	5956		3. An individual who is an e mployee of or associated with a
3472	5957		person liable under subsect ions B through F of this section and who
3473	5958		materially aids the conduct giving rise to the liability, unless the
3474	5959		individual sustains the burden of proof that the individua l did not
3475	5960		know and, in the exercise of reasonable care could not have known,
3476	5961		of the existence of the conduct by reason of which the li ability is
3477	5962		alleged to exist;
3478	5963
	5964	+	SB1361 HFLR Page 118
	5965	+	BOLD FACE denotes Committee Amendments. 1
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	5989	+
3479	5990		4. A person that is a b roker-dealer, agent, investment adviser,
3480	5991		or investment adviser repres entative that materially aids the
3481	5992		conduct giving rise to the liability under subsections B through F
3482	5993		of this section, unless the perso n sustains the burden of proof that
3483	5994		the person did not know and, in the exercise of reasonable care
3484	5995		could not have known, of the existence of the conduct by reason of
3485	5996		which liability is alleged to exist; and
3486		-
3487	5997		5. Any other person who materially aids in the conduct giving
3488	5998		rise to the liability under subsection s B through F of this section,
3489	5999		unless the person sustains the burden or proof that the person did
3490	6000		not know and, in the exercise of reasonable care could not have
3491	6001		known, of the existence of the conduct by reason of which liability
3492	6002		is alleged to exist.
3493		-
3494	6003		H. A person liable under this section has a right of
3495	6004		contribution as in c ases of contract against any other person liable
3496	6005		under this section for the same conduct .
3497		-
3498	6006		I. A cause of action under this section sur vives the death of
3499	6007		an individual who might have been a plaintiff or defendant.
3500		-
3501	6008		J. A person may not obtain relief:
3502		-
3503	6009		1. Under subsection B of this section for violation of Section
3504	6010		10 1-301 of this act title, or under subsection D or E of this
3505	6011		section, unless the action is commenced within one year after the
3506	6012		violation occurred; or
3507	6013
	6014	+	SB1361 HFLR Page 119
	6015	+	BOLD FACE denotes Committee Amendments. 1
	6016	+	2
	6017	+	3
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	6019	+	5
	6020	+	6
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	6038	+	24
	6039	+
3508	6040		2. Under subsection B of this section, other t han for violation
3509	6041		of Section 10 1-301 of this act title, or under subsection C or F of
3510		-
3511		-	ENR. S. B. NO. 1361 Page 81
3512	6042		this section, unless the action is instituted within the earlier of
3513	6043		two (2) years after discovery of the facts constituting the
3514	6044		violation or five (5) years after such violation.
3515		-
3516	6045		K. A person that has made, or has engaged in the performance
3517	6046		of, a contract in violation of this act or a rule adopted or order
3518	6047		issued under this ac t, or that has acquired a purported right under
3519	6048		the contract with knowledge of conduct by reason o f which its making
3520	6049		or performance was in violation of this act, may not base an action
3521	6050		on the contract.
3522		-
3523	6051		L. A condition, stipulation, or provision binding a p erson
3524	6052		purchasing or selling a security or receiving i nvestment advice to
3525	6053		waive compliance with thi s act or a rule adopted or or der issued
3526	6054		under this act is void.
3527		-
3528	6055		M. The rights and remed ies provided by this act are in addition
3529	6056		to any other rights or remedi es that may exist, but this act does
3530	6057		not create a cause of action not specified in this section.
3531		-
3532	6058		SECTION 33. AMENDATORY 71 O.S. 2021, Section 1-510, is
3533	6059		amended to read as follows:
3534		-
3535	6060		Section 1-510. A purchaser, seller, or recipient of investment
3536	6061		advice may not maintain an action under Section 37 1-509 of this act
3537	6062		title if:
3538	6063
	6064	+	SB1361 HFLR Page 120
	6065	+	BOLD FACE denotes Committee Amendments. 1
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	6089	+
3539	6090		1. The purchaser, seller, or recip ient of investment advice
3540	6091		receives in a record, before the action is instituted:
3541		-
3542	6092		a. an offer stating the respect in which liability under
3543	6093		Section 37 1-509 of this act title may have arisen and
3544	6094		fairly advising the purchaser, sel ler, or recipient of
3545	6095		investment advice of that person’s rights in
3546	6096		connection with the of fer, and any financial or other
3547	6097		information necessary to correct all material
3548	6098		misstatements or omissions in the information that was
3549	6099		required by this act to be furnishe d to that person at
3550	6100		the time of the purchase, sale, or investment advice,
3551		-
3552	6101		b. if the basis for relief under this section may have
3553	6102		been a violation of subsection B of Section 37 1-509
3554		-
3555		-	ENR. S. B. NO. 1361 Page 82
3556	6103		of this act title, an offer to repurchase th e security
3557	6104		for cash, payable on delivery of the security, e qual
3558	6105		to the consideration paid, and interest at the legal
3559	6106		rate of interest per year from the date of purchase,
3560	6107		less the amount of any income received on the
3561	6108		security, or, if the purchaser no longer owns the
3562	6109		security, an offer t o pay the purchaser upon
3563	6110		acceptance of the offer damages in an amount that
3564	6111		would be recoverable upon a tender, less the value o f
3565	6112		the security when the purcha ser disposed of it, and
3566	6113		interest at the legal rate of interest per ye ar from
	6114	+
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	6116	+	BOLD FACE denotes Committee Amendments. 1
	6117	+	2
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	6140	+
3567	6141		the date of purchase i n cash equal to the damages
3568	6142		computed in the manner provided in this subsection ,
3569		-
3570	6143		c. if the basis for relief under this section m ay have
3571	6144		been a violation of su bsection C of Section 37 1-509
3572	6145		of this act title, an offer to tender the security, on
3573	6146		payment by the seller of an amount equal t o the
3574	6147		purchase price paid, less income received on the
3575	6148		security by the purchaser, and interest at the legal
3576	6149		rate of interest from the date o f the sale, or if the
3577	6150		purchaser no longer owns the securi ty, an offer to pay
3578	6151		the seller upon acceptance of the offer , in cash,
3579	6152		damages in the amount of the difference between the
3580	6153		price at which the security was purchased and t he
3581	6154		value the security would ha ve had at the time of the
3582	6155		purchase in the absence of the purchaser’s conduct
3583	6156		that may have caused liability and inte rest at the
3584	6157		legal rate of interest per year from the date o f the
3585	6158		sale,
3586		-
3587	6159		d. if the basis for relief under this s ection may have
3588	6160		been a violation of subsection D of Section 37 1-509
3589	6161		of this act title, and if the customer is a purc haser,
3590	6162		an offer to pay as spe cified in subparagraph b of this
3591	6163		paragraph; or, if the customer is a seller, an offer
	6164	+
	6165	+	SB1361 HFLR Page 122
	6166	+	BOLD FACE denotes Committee Amendments. 1
	6167	+	2
	6168	+	3
	6169	+	4
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	6187	+	22
	6188	+	23
	6189	+	24
	6190	+
3592	6191		to tender or to pay as specified in subparagraph c of
3593	6192		this paragraph,
3594		-
3595	6193		e. if the basis for relief under this sec tion may have
3596	6194		been a violation of subsection E of Section 37 1-509
3597	6195		of this act title, an offer to reimburse in cash th e
3598		-
3599		-	ENR. S. B. NO. 1361 Page 83
3600	6196		consideration paid for the advice and interest at the
3601	6197		legal rate of interest per year from the date of
3602	6198		payment, or
3603		-
3604	6199		f. if the basis for relief under this section may h ave
3605	6200		been a violation of subse ction F of Section 37 1-509
3606	6201		of this act title, an offer to reimburse in cash the
3607	6202		consideration paid for the advice, the amount of any
3608	6203		actual damages that may have been caused b y the
3609	6204		conduct, and interest at the legal rate of in terest
3610	6205		per year from the date of the violation causing the
3611	6206		loss;
3612		-
3613	6207		2. An offer under paragraph 1 of this subsection states that it
3614	6208		must be accepted by the purchaser, seller, or recipient of
3615	6209		investment advice within thirty (30) days after the date of its
3616	6210		receipt by the purchaser, seller , or recipient of investment advice,
3617	6211		or any shorter period, of not less than three (3) days, that the
3618	6212		Administrator, by order, specifies;
3619	6213
	6214	+	SB1361 HFLR Page 123
	6215	+	BOLD FACE denotes Committee Amendments. 1
	6216	+	2
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	6237	+	23
	6238	+	24
	6239	+
3620	6240		3. The offeror has the present abilit y to pay the amount
3621	6241		offered or to tender the securi ty under paragraph 1 of this
3622	6242		subsection;
3623		-
3624	6243		4. The offer under paragraph 1 of this subsect ion is delivered
3625	6244		to the purchaser, seller, or recipient of investment advice, or sent
3626	6245		in a manner that ensures receip t by the purchaser, s eller, or
3627	6246		recipient of investm ent advice; and
3628		-
3629	6247		5. The purchaser, seller, or recipient of investment advice
3630	6248		that accepts the offer under paragraph 1 of this subsection, in a
3631	6249		record within the period specifi ed under paragraph 2 of this
3632	6250		subsection is paid in accordance with the terms of t he offer.
3633		-
3634	6251		SECTION 34. AMENDATORY 71 O.S. 2021, Section 1 -601, is
3635	6252		amended to read as follows:
3636		-
3637	6253		Section 1-601. A. The Administrator shall administer the
3638	6254		Oklahoma Uniform Securities Act of 2004.
3639		-
3640	6255		B. There are hereby created the Oklah oma Securities Commission
3641	6256		and the Department of Securities. The Commission shall be the
3642		-
3643		-	ENR. S. B. NO. 1361 Page 84
3644	6257		policy making and governing authority of the Depar tment, shall
3645	6258		appoint the Administrator and shall be res ponsible for the
3646	6259		enforcement of the Oklahoma Uniform Securitie s Act of 2004.
3647		-
3648	6260		C. 1. The Commission shall consist of four (4) members to be
3649	6261		appointed by the Governor by and with the advice and consent of the
3650	6262		Senate. One member will be a member of the Oklahoma Bar Association
3651	6263		appointed from a list of five nominees su bmitted by the Oklahoma Bar
	6264	+
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	6290	+
3652	6291		Association; one member shall be an active officer of a bank or
3653	6292		trust company operating in the State of Oklahom a appointed from a
3654	6293		list of five nominees submitted by the Oklahoma Bankers Association;
3655	6294		and one member shall be a cer tified public accountant appo inted from
3656	6295		a list of five nominees submitted by the Oklahom a Society of
3657	6296		Certified Public Accountants; and one member shall be engaged in the
3658	6297		securities industry and shall be appointed for a six -year initial
3659	6298		term from a list of five nominees submitted by th e Oklahoma
3660	6299		Securities Industry Association; provided, that the State Banking
3661	6300		Commissioner shall be and is here by made an ex officio voting member
3662	6301		of the Commission.
3663		-
3664	6302		2. Except for appointment of the member engaged in the
3665	6303		securities industry as provided for in subsection C of this section,
3666	6304		no person may be appointe d to or by the Commission while such person
3667	6305		is registered as a broker-dealer, agent, investment adviser, or
3668	6306		investment adviser representative under the Oklahoma Uniform
3669	6307		Securities Act of 2004, or w hile he or she is an officer, director,
3670	6308		or partner of any person so registered, or while he or she is an
3671	6309		officer, director, or partner of an issuer which has a registration
3672	6310		statement effective under the Oklahoma Uniform Securit ies Act of
3673	6311		2004, or while he or she is occupying a similar status or performing
3674	6312		similar functions.
3675		-
3676	6313		3. It is unlawful for any member of the Commission, the
3677	6314		Administrator, or any other officer or employee of the Department to
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3678	6342		use for personal benefit any in formation which is filed with or
3679	6343		obtained by the Administrator and which is not made pub lic. No
3680	6344		provision of the Oklahoma Uniform Securiti es Act of 2004 authorizes
3681	6345		any member of the Commission, the Administrator or any other officer
3682	6346		or employee of the Dep artment to disclose any such information
3683	6347		except among themselves or when necessary or ap propriate in a
3684	6348		proceeding or investigation under th e Oklahoma Uniform Securities
3685	6349		Act of 2004 or in connection with a proceeding or investigation
3686		-
3687		-	ENR. S. B. NO. 1361 Page 85
3688	6350		conducted by any state, federal or foreign law enfor cement agency,
3689	6351		securities agency or self-regulatory organization. No provision of
3690	6352		the Oklahoma Uniform Securi ties Act of 2004 either creates or
3691	6353		derogates from any privilege which exists at common law or otherwise
3692	6354		when documentary or other evidence is soug ht under a subpoena
3693	6355		directed to any member of the Commissio n, the Administrator or any
3694	6356		other officer or employ ee of the Department.
3695		-
3696	6357		4. Except on proof of corruption, no Commissioner shall for his
3697	6358		or her acts or failure to act be civilly liable to any inve stor,
3698	6359		applicant for registration, or any other person.
3699		-
3700	6360		D. The Governor shall biennially appoint Commission me mbers to
3701	6361		serve for a staggered term of six (6) years. Upon the expiration of
3702	6362		initial terms, the term of each member shall be six (6) years from
3703	6363		the date of his or her appointment and qualification, and un til his
3704	6364		or her successor shall qualify. Vacancies shall be filled by the
	6365	+
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	6367	+	BOLD FACE denotes Committee Amendments. 1
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3705	6392		Governor for the unexpired term. Members shall be eligible for
3706	6393		reappointment.
3707		-
3708	6394		E. The Commission shall select a chair and is hereby authorized
3709	6395		to adopt rules for conducting its proc eedings. Any three members
3710	6396		shall constitute a quor um for transacting Commission business. The
3711	6397		Commission shall meet bimonthly on such date as it may designate and
3712	6398		may meet at such other times as it may deem necessary, or when
3713	6399		called by the chair or by an y two members. Complete minutes of each
3714	6400		meeting shall be kept and filed in the Department and shall be
3715	6401		available for public inspection during reasonable office hours. The
3716	6402		Commission shall report annually to the Governor, to the Speaker of
3717	6403		the House of Representatives and to the President Pro Tempore of t he
3718	6404		Senate. The report shall contain the minutes of each meeting held
3719	6405		during the year, legislative recommendations, a summary of
3720	6406		violations of the Oklahoma Uniform Securities Act of 2004 and action
3721	6407		taken thereon, a list of securities registered under the O klahoma
3722	6408		Uniform Securities Act of 2004 and such other data and information
3723	6409		as may be deemed necessary or appropriate. The Commission is hereby
3724	6410		authorized to publish such report, and the Administrator may sell
3725	6411		copies of such report at such price as is reas onably sufficient to
3726	6412		defray the expenses of the Department in preparing, publishing, and
3727	6413		disseminating the same. Eac h member of the Commission sh all have
3728	6414		unrestricted access to all offices and records und er the
3729	6415		jurisdiction of the Department. The Commiss ion, or a majority
3730	6416
3731		-	ENR. S. B. NO. 1361 Page 86
	6417	+	SB1361 HFLR Page 127
	6418	+	BOLD FACE denotes Committee Amendments. 1
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3732	6443		thereof, may exercise any power or perform any act authorized for
3733	6444		the Administrator under the prov isions of the Oklahoma Unifor m
3734	6445		Securities Act of 2004.
3735		-
3736	6446		F. The Commission shall appoint a full-time Administrator, who
3737	6447		shall serve at the p leasure of the Commission. The Administrator
3738	6448		shall administer the Oklahoma Uniform Securities Act of 2004 under
3739	6449		the supervision of the Commission and in accordance with its
3740	6450		policies.
3741		-
3742	6451		G. The Administrator shall be a person of good moral character,
3743	6452		at least thirty (30) years of age, a resident taxpayer of Oklahoma,
3744	6453		and thoroughly familiar with corporate organization, inv estment
3745	6454		banking, investment t rusts, the sale of securities, and the
3746	6455		statistical details of the manufacturing industries and commerce of
3747	6456		this state. In addition, the Administrator shall:
3748		-
3749	6457		1. Be a graduate of an accredited law school and a member of
3750	6458		the Oklahoma Bar Association, or sha ll have had ten (10) years’
3751	6459		experience as a certified publi c accountant; and
3752		-
3753	6460		2. Have at least three (3) years ’ work experience involving
3754	6461		some aspect of the securities industry. The Commission may also
3755	6462		require additional quali fications. The salary of the Administrator
3756	6463		shall be fixed by the Commission.
3757		-
3758	6464		H. The Administrator, with the approval of the Commission, m ay
3759	6465		designate a Deputy Securities Administrator, who shall possess the
3760	6466		same qualifications, including bond, required f or the Administrator
	6467	+
	6468	+	SB1361 HFLR Page 128
	6469	+	BOLD FACE denotes Committee Amendments. 1
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	6493	+
3761	6494		and who shall perform all the duties required to be performed by th e
3762	6495		Administrator when the Administrator is absent or unable to act for
3763	6496		any reason.
3764		-
3765	6497		I. Before assuming office, the Administrator shall give a bond
3766	6498		in the sum of Fifty Th ousand Dollars ($50,000.00) p ayable to the
3767	6499		State of Oklahoma, to be approved by the Atto rney General of the
3768	6500		State of Oklahoma, conditioned that he or she will faithfully
3769	6501		execute the duties of the office. The Administrator may by rule or
3770	6502		order require any employee of the Department to be bonded on the
3771	6503		same condition and in the same or such le sser amount as he or she
3772	6504		determines. The expense o f all such bonds shall be paid from funds
3773	6505		available to the Department.
3774		-
3775		-	ENR. S. B. NO. 1361 Page 87
3776		-
3777	6506		J. 1. The internal administrative organizati on of the
3778	6507		Department shall be determined by the Commission in such manner as
3779	6508		to promote the efficient and effective enforcement of the Okla homa
3780	6509		Uniform Securities Act of 2004. The Department shall include, but
3781	6510		not be limited to, divisions relating to:
3782		-
3783	6511		a. registration of broker -dealers, agents, investment
3784	6512		advisers, and investment adviser repr esentatives,
3785		-
3786	6513		b. registration of securities,
3787		-
3788	6514		c. investigation and enforcement, and
3789		-
3790	6515		d. investor education.
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	6517	+	SB1361 HFLR Page 129
	6518	+	BOLD FACE denotes Committee Amendments. 1
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3791	6542
3792	6543		2. Within the division of investor education, the Department
3793	6544		may provide the following serv ices at the discretion of the
3794	6545		Administrator:
3795		-
3796	6546		a. informing investors of all rights and remedies
3797	6547		available under this act,
3798		-
3799	6548		b. informing investors of the availability of private
3800	6549		dispute resolution, including arbitration and
3801	6550		mediation, as an alternative to oth er courses of
3802	6551		action,
3803		-
3804	6552		c. acting as a liaison between invest ors and the other
3805	6553		divisions of the Department, and
3806		-
3807	6554		d. acting as a liaison between investors and issuers of
3808	6555		securities, broker-dealers or investment advisers
3809	6556		subject to the jurisdiction of the Depar tment under
3810	6557		this act.
3811		-
3812	6558		Nothing in this subsection shall auth orize any employee of the
3813	6559		Department to represent t he interests of, or to serve as counsel
3814	6560		for, investors in any proceeding or action to include an
3815	6561		administrative or ci vil proceeding brought by the Department or the
3816	6562		Securities and Exchange Commission, a pr oceeding brought by the
3817	6563		National Association of Sec urities Dealers, Inc., or an arbitration
3818		-
3819		-	ENR. S. B. NO. 1361 Page 88
3820	6564		or mediation proceeding. Further, no employee of the Department may
3821	6565		advise any person about the value of securities or as to the
	6566	+
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	6568	+	BOLD FACE denotes Committee Amendments. 1
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	6591	+	24
	6592	+
3822	6593		advisability of investing in, purc hasing or selling securities, or
3823	6594		as to the value or merits of pursuing a particular course of action.
3824		-
3825	6595		3. Employees Records of the division of investor education
3826	6596		shall not be exempt from the provis ions of the Open Records Act and
3827	6597		Section 1-607 of this title except as provided for in subparagraph 8
3828	6598		of paragraph B of Section 1-607 of this title.
3829		-
3830	6599		K. The Administrator shall prepare in writing a manual of
3831	6600		necessary employee positions for the Department, including job
3832	6601		classifications, personnel qualifications, d uties, maximum and
3833	6602		minimum salary schedules, and ot her personnel information, which
3834	6603		shall be approved by the Com mission. The Administrator may select,
3835	6604		appoint, and employ such attorneys, accountants, auditors,
3836	6605		examiners, clerks, stenographers, and other p ersonnel as he or she
3837	6606		deems necessary for the prope r administration of the Oklahoma
3838	6607		Uniform Securities Act of 2004, and may fix their compensation and
3839	6608		the salary of the Deputy Administrator. The D eputy Administrator
3840	6609		and other employees of the Department s hall serve at the pleasure of
3841	6610		the Administrator.
3842		-
3843	6611		L. The Commission and the Securities Department shall be
3844	6612		assigned offices in Oklahoma City, Oklahoma, by the Office of
3845	6613		Management and Enterprise Se rvices, and all records of the
3846	6614		Commission and Department sh all be kept in those offices, unless and
3847	6615		until transferred to the Records Management Division of the Oklahoma
3848	6616		Department of Libraries.
	6617	+
	6618	+	SB1361 HFLR Page 131
	6619	+	BOLD FACE denotes Committee Amendments. 1
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3849	6643
3850	6644		M. The Department of Securities ’ attorney, paralegal, legal
3851	6645		secretary, accountant, investigator, examiner, chief financi al
3852	6646		officer, network administrator, business manager , and investor
3853	6647		education coordinator positions shall be in the unclassif ied service
3854	6648		and are in no way subject to any of the provisions of the Meri t
3855	6649		System of Personnel Administration or of the rules promul gated by
3856	6650		the Office of Management and Enterprise Se rvices except those
3857	6651		relating to leave regulations.
3858		-
3859	6652		N. 1. Neither the Administrator nor any employee of the
3860	6653		Department, during their respective t erms of employment, shall serve
3861	6654		as a director, officer, sha reholder, member, partner, agent or
3862		-
3863		-	ENR. S. B. NO. 1361 Page 89
3864	6655		employee of any person who, during the period of such
3865	6656		Administrator’s or employee’s employment with the Department:
3866		-
3867	6657		a. was licensed or applied for registration a s a broker-
3868	6658		dealer, agent, investment adviser or investment
3869	6659		adviser representative under this act, or
3870		-
3871	6660		b. applied for or secured the registration of securities
3872	6661		under the Oklahoma Unifo rm Securities Act of 2004.
3873		-
3874	6662		2. Nothing in paragraph 1 of this subsection s hall prohibit the
3875	6663		holding, purchasing or selling of any sec urities by the
3876	6664		Administrator or any employee of the Department in accordance with
3877	6665		regulations adopted by the Commission for the purpose of protecting
3878	6666		the public interest and avoiding conflicts of i nterest.
3879	6667
	6668	+	SB1361 HFLR Page 132
	6669	+	BOLD FACE denotes Committee Amendments. 1
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	6693	+
3880	6694		3. Nothing contained in paragraph 1 of this subse ction shall
3881	6695		prohibit the holding, purchasing or sel ling of any securities of any
3882	6696		issuer described in subparagraph b of para graph 1 of this subsection
3883	6697		of this section by the Administrator if either:
3884		-
3885	6698		a. the Administrator together with his or her spouse, or
3886	6699		minor children, owns less than one percent (1%) of a ny
3887	6700		class of outstanding securities of any such issuer so
3888	6701		long as such securities are not purchased in an
3889	6702		initial public offering, or
3890		-
3891	6703		b. such securities are held or purchased through a
3892	6704		management account or trust administered by a bank or
3893	6705		trust company authorized to do business in this state
3894	6706		that has sole investment discretion regarding the
3895	6707		holding, purchasing or selling of such securities and
3896	6708		the Administrator or employee did not, directly or
3897	6709		indirectly, advise, counsel or command the holding,
3898	6710		purchasing or selling of any securities or furnish any
3899	6711		information relating to any su ch securities to such
3900	6712		bank or trust company a nd further, such account or
3901	6713		trust does not at any time have more than ten percent
3902	6714		(10%) of its total assets invested in the securities
3903	6715		of any one issuer or hold more than five percent (5%)
3904	6716		of the outstanding sec urities of any class of
3905	6717		securities of any one issuer.
3906	6718
3907		-	ENR. S. B. NO. 1361 Page 90
	6719	+	SB1361 HFLR Page 133
	6720	+	BOLD FACE denotes Committee Amendments. 1
	6721	+	2
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	6743	+	24
3908	6744
3909	6745		O. N. The Oklahoma Uniform Securities Act of 2004 does not
3910	6746		create or diminish a privilege or exemption that exists at common
3911	6747		law, by statute or rule, or otherwise.
3912		-
3913	6748		P. O. The Administrator may develop and im plement investor
3914	6749		education initiatives to inform the public about in vesting in
3915	6750		securities, with particular emphasis on the prev ention and detection
3916	6751		of securities fraud. In devel oping and implementing these
3917	6752		initiatives, the Administrator may collaborate wi th public and
3918	6753		nonprofit organizations w ith an interest in investor e ducation. The
3919	6754		Administrator may accept a grant or donation from a person that is
3920	6755		not affiliated with the secu rities industry or from a nonprofit
3921	6756		organization, regardless of whether the or ganization is affiliated
3922	6757		with the securities industry, to develop an d implement investor
3923	6758		education initiatives. This subsectio n does not authorize the
3924	6759		Administrator to require p articipation or monetary contributions of
3925	6760		a registrant in an investor educatio n program.
3926		-
3927	6761		SECTION 35. AMENDATORY 71 O.S. 2021, Section 1-604, is
3928	6762		amended to read as follows:
3929		-
3930	6763		Section 1-604. A. If the Administrator determines that a
3931	6764		person has engaged, is engaging, or is about to engage in an act,
3932	6765		practice, or course of business constituting a viol ation of this act
3933	6766		or a rule adopted or order issued under this act or constituting a
3934	6767		dishonest or unethical practice or that a person has materially
3935	6768		aided, is materially aiding, or is about to materially aid an act,
	6769	+
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	6771	+	BOLD FACE denotes Committee Amendments. 1
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	6795	+
3936	6796		practice, or course of business constitu ting a violation of this act
3937	6797		or a rule adopted or order issued under this act or constituting a
3938	6798		dishonest or unethical practice, the Administrator may:
3939		-
3940	6799		1. Issue an order directing the person to cease and desis t from
3941	6800		engaging in the act, practice, or cours e of business or to take
3942	6801		other action necessary or appropriate to comply with this act;
3943		-
3944	6802		2. Issue an order denying, suspending, revoking, or
3945	6803		conditioning the exemptions for a broker -dealer under subparagraph d
3946	6804		or f of paragraph 1 of subsection B of Section 18 1-401 of this act
3947	6805		title or an investment adviser under subparagraph c of paragraph 2
3948	6806		of subsection B of Section 20 1-403 of this act title; or
3949		-
3950		-
3951		-	ENR. S. B. NO. 1361 Page 91
3952	6807		3. Issue an order under Section 9 1-204 of this act title.
3953		-
3954	6808		B. An order under subsection A of this section is effective on
3955	6809		the date of issuance. Upon issuance of the order, the Administrat or
3956	6810		shall promptly serve each person subject to the order with a copy of
3957	6811		the order and a notice that the order has been entered. The order
3958	6812		must include a statement whether the Administrator will seek a ci vil
3959	6813		penalty or costs of the investigation, a stateme nt of the reasons
3960	6814		for the order, and notice that, within fifteen (15) days after
3961	6815		receipt of a request in a record from the person , the matter will be
3962	6816		scheduled for a hearing a nd the hearing shall be comme nced within
3963	6817		fifteen (15) days of the matter being se t for hearing. Any request
3964	6818		for a hearing shall be made in writing and the person making the
3965	6819		request shall specifically admi t or deny the allegations contained
	6820	+
	6821	+	SB1361 HFLR Page 135
	6822	+	BOLD FACE denotes Committee Amendments. 1
	6823	+	2
	6824	+	3
	6825	+	4
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	6845	+	24
	6846	+
3966	6847		in the order. If a person subject to the or der does not request a
3967	6848		hearing and none is ordered by the A dministrator, within thirty (30)
3968	6849		days after the date of service of the order, the order , that may
3969	6850		include a civil penalty or costs of the investigation if a civil
3970	6851		penalty or costs were sought in th e statement accompanying the
3971	6852		order, becomes final as to tha t person by operation of law. If a
3972	6853		hearing is requested or ordered, the Administrator, after notice of
3973	6854		and opportunity for hearing to each person subje ct to the order, may
3974	6855		modify or vacate the ord er or extend it until final determination.
3975		-
3976	6856		C. If a hearing is requested or ordered pursuant to subsection
3977	6857		B of this section, a hearing must be held pursuant to the
3978	6858		Administrative Procedures Act. A final order may not be issued
3979	6859		unless the Administrator ma kes findings of fact and conclusions of
3980	6860		law in a record in accordance with the Administrative Procedure s
3981	6861		Act. The final order may make final, vacate, or modify the order
3982	6862		issued under subsection A of this section.
3983		-
3984	6863		D. In a final order under subsection C of this section, the
3985	6864		Administrator may impose a civil penalty up to a maximum of Five
3986	6865		Thousand Dollars ($5,000.00) for a single violation or up to Two
3987	6866		Hundred Fifty Thousand Dollars ( $250,000.00) for multiple violations
3988	6867		in a single proceeding or a series of related proceedings.
3989		-
3990	6868		E. In a final order, the Administrato r may charge the actual
3991	6869		cost of an investigation or proceeding for a violation of this act
3992	6870		or a rule adopted or order issu ed under this act.
3993	6871
3994		-
3995		-	ENR. S. B. NO. 1361 Page 92
	6872	+	SB1361 HFLR Page 136
	6873	+	BOLD FACE denotes Committee Amendments. 1
	6874	+	2
	6875	+	3
	6876	+	4
	6877	+	5
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	6893	+	21
	6894	+	22
	6895	+	23
	6896	+	24
	6897	+
3996	6898		F. If a petition for judicial review of a final order i s not
3997	6899		filed in accordance with Section 47 1-609 of this act title, the
3998	6900		Administrator may file a certified copy of the final order with the
3999	6901		clerk of a court of competent jurisdiction . The order so filed has
4000	6902		the same effect as a judgment of the court and ma y be recorded,
4001	6903		enforced, or satisfied in the same manner as a judgment of the
4002	6904		court.
4003		-
4004	6905		G. If a person does not comply with an order under this
4005	6906		section, the Administrator may petition a court of competent
4006	6907		jurisdiction to enfo rce the order. The court may not require the
4007	6908		Administrator to post a bond in an action or p roceeding under this
4008	6909		section. If the court finds, after service and opportunity for
4009	6910		hearing, that the person was not in c ompliance with the order, the
4010	6911		court may adjudge the person in civil contemp t of the order. The
4011	6912		court may impose a further civil penal ty against the person for
4012	6913		contempt in an amount not to exceed One Thousand Dollars ($1,000.00)
4013	6914		for each violation and may grant any other relief the court
4014	6915		determines is just and proper in the circu mstances.
4015		-
4016	6916		SECTION 36. AMENDATORY 7 1 O.S. 2021, Section 1-605, is
4017	6917		amended to read as follows:
4018		-
4019	6918		Section 1-605. A. The Administrator may:
4020		-
4021	6919		1. Issue forms and orders and, after notice and comment, may
4022	6920		adopt and amend rules necessary o r appropriate to carry out this act
4023	6921		and may repeal rules, including rules and forms governing
	6922	+
	6923	+	SB1361 HFLR Page 137
	6924	+	BOLD FACE denotes Committee Amendments. 1
	6925	+	2
	6926	+	3
	6927	+	4
	6928	+	5
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	6943	+	20
	6944	+	21
	6945	+	22
	6946	+	23
	6947	+	24
	6948	+
4024	6949		registration statements, applications, notice filings, reports, and
4025	6950		other records;
4026		-
4027	6951		2. By rule, define terms, whether or not used in this act, but
4028	6952		those definitions may not be inconsistent with this act; and
4029		-
4030	6953		3. By rule, classify securities, persons, and transactions and
4031	6954		adopt different requirements for different classes.
4032		-
4033	6955		B. Under this act, a rule or form may not be adopted or
4034	6956		amended, or an order issued or amende d, unless the Administrator
4035	6957		finds that the rule, form, order, or amendment is necessary or
4036	6958		appropriate in the public interest or for the protection of
4037	6959		investors and is consistent with the purposes intended by this act.
4038		-
4039		-	ENR. S. B. NO. 1361 Page 93
4040	6960		In adopting, amending, and repealing rules and forms, Section 46 1-
4041	6961		608 of this act title applies in order to achieve uniformity among
4042	6962		the states and coordination with federal laws in the form and
4043	6963		content of registration statements, applications, reports, and othe r
4044	6964		records, including the adop tion of uniform rules, forms, and
4045	6965		procedures.
4046		-
4047	6966		C. Subject to Section 15(h) 15(i) of the Securities Exchange
4048	6967		Act (15 U.S.C. Section 78o(i)) and Section 222 of the Investment
4049	6968		Advisers Act of 1940 (15 U.S.C. Section 80b -18a), the Administrator
4050	6969		may require that a financial statement filed under this act be
4051	6970		prepared in accordance with generally accepted accounting principles
4052	6971		in the United States and comply with other requ irements specified by
	6972	+
	6973	+	SB1361 HFLR Page 138
	6974	+	BOLD FACE denotes Committee Amendments. 1
	6975	+	2
	6976	+	3
	6977	+	4
	6978	+	5
	6979	+	6
	6980	+	7
	6981	+	8
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	6991	+	18
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	6993	+	20
	6994	+	21
	6995	+	22
	6996	+	23
	6997	+	24
	6998	+
4053	6999		rule adopted or order issued under this a ct. A rule adopted or
4054	7000		order issued under this act may establish:
4055		-
4056	7001		1. Subject to Section 15(h) 15(i) of the Securities Exchange
4057	7002		Act (15 U.S.C. Section 78o(i)) and Section 222 of the Investment
4058	7003		Advisors Act of 1940 (15 U.S.C. Section 80b -18a), the form and
4059	7004		content of financial statemen ts required under this act;
4060		-
4061	7005		2. Whether unconsolidated financial statements must be filed;
4062	7006		and
4063		-
4064	7007		3. Whether required financial statements must be audited by an
4065	7008		independent certified public accoun tant.
4066		-
4067	7009		D. The Administrator may provide interpretative opinion s or
4068	7010		issue determinations that the Administrator will not institute a
4069	7011		proceeding or an action under this act against a specified person
4070	7012		for engaging in a specified act, practice, or course of bu siness if
4071	7013		the determination is consistent with this act. The charge for
4072	7014		interpretative opinions or determinati ons that the Administrator
4073	7015		will not institute an action or a proceeding under this act shall be
4074	7016		specified in Section 50 1-612 of this act title.
4075		-
4076	7017		E. A penalty under this act may not be imposed for, and
4077	7018		liability does not arise from, conduct that is engaged in or omitted
4078	7019		in good faith believing it conforms to a rule, form, or order of the
4079	7020		Administrator under this act.
4080		-
4081		-
4082		-	ENR. S. B. NO. 1361 Page 94
4083	7021		F. A hearing in an administrative proceedi ng under this act
4084	7022		shall be conducted in public.
4085	7023
	7024	+	SB1361 HFLR Page 139
	7025	+	BOLD FACE denotes Committee Amendments. 1
	7026	+	2
	7027	+	3
	7028	+	4
	7029	+	5
	7030	+	6
	7031	+	7
	7032	+	8
	7033	+	9
	7034	+	10
	7035	+	11
	7036	+	12
	7037	+	13
	7038	+	14
	7039	+	15
	7040	+	16
	7041	+	17
	7042	+	18
	7043	+	19
	7044	+	20
	7045	+	21
	7046	+	22
	7047	+	23
	7048	+	24
	7049	+
4086	7050		SECTION 37. AMENDATORY 71 O.S. 2 021, Section 1-606, is
4087	7051		amended to read as follows:
4088		-
4089	7052		Section 1-606. A. The Administrator shall maintain, or
4090	7053		designate a person to maintain, a re gister of applications for
4091	7054		registration of securities; re gistration statements; notice filings;
4092	7055		applications for reg istration of broker-dealers, agents, investment
4093	7056		advisers, and investment adviser representatives; notice filings by
4094	7057		federal covered investme nt advisers that are or have been effective
4095	7058		under this act or the predecessor act; notices of claims of
4096	7059		exemption from registration or notice filing requirements contained
4097	7060		in a record; orders issued under this act or the predecessor act;
4098	7061		and interpretative opinions or no action deter minations issued under
4099	7062		this act.
4100		-
4101	7063		B. The Administrator shall make all rules, forms,
4102	7064		interpretative opinions, and orders available to the public.
4103		-
4104	7065		C. The Administrator shall furnish a copy of a record that is a
4105	7066		public record or a certification that the publ ic record does not
4106	7067		exist to a person who so requests. The charge for furnishing the
4107	7068		record or certification shall be specified in Section 50 1-612 of
4108	7069		this act title. A copy of the record certified or a certificate by
4109	7070		the Administrator of a record ’s nonexistence is prima facie eviden ce
4110	7071		of a record or its nonexistence.
4111		-
4112	7072		SECTION 38. AMENDATORY 71 O.S. 2021, Section 1 -607, is
4113	7073		amended to read as follo ws:
	7074	+
	7075	+	SB1361 HFLR Page 140
	7076	+	BOLD FACE denotes Committee Amendments. 1
	7077	+	2
	7078	+	3
	7079	+	4
	7080	+	5
	7081	+	6
	7082	+	7
	7083	+	8
	7084	+	9
	7085	+	10
	7086	+	11
	7087	+	12
	7088	+	13
	7089	+	14
	7090	+	15
	7091	+	16
	7092	+	17
	7093	+	18
	7094	+	19
	7095	+	20
	7096	+	21
	7097	+	22
	7098	+	23
	7099	+	24
4114	7100
4115	7101		Section 1-607. A. Except as otherwise provided in subsection B
4116	7102		of this section, records obtained by the Admini strator or filed
4117	7103		under this act, including a record contain ed in or filed with a
4118	7104		registration statement, application, notice filing, or report, are
4119	7105		public records and are available for public examination.
4120		-
4121	7106		B. The following records are not public records an d are not
4122	7107		available for public examination under subsection A of this section:
4123		-
4124		-
4125		-	ENR. S. B. NO. 1361 Page 95
4126	7108		1. A record obtained by the Administrator or created by a
4127	7109		representative of the Administrator in connection with an audit or
4128	7110		inspection under subse ction K of Section 14 1-305 or subsection D of
4129	7111		Section 27 1-410 of this act title or an investigation under Section
4130	7112		40 1-602 of this act title;
4131		-
4132	7113		2. A part of a record filed in connection with a registration
4133	7114		statement under Sections 10 1-301 and 12 1-303 through 14 1-305 of
4134	7115		this act title or a record obtained under subsection K of Section 14
4135	7116		1-305 or subsection D of Section 27 1-410 of this act title that
4136	7117		contains trade secrets or confidential information if the pers on
4137	7118		filing the registration statement or pr oviding the record has
4138	7119		asserted a claim of confidentiality or privilege that is authoriz ed
4139	7120		by law;
4140		-
4141	7121		3. A record that is not required to be provided to the
4142	7122		Administrator or filed under this act and is provided to th e
4143	7123		Administrator only on the condition that the record will not be
4144	7124		subject to public examination or disclosure;
4145	7125
	7126	+	SB1361 HFLR Page 141
	7127	+	BOLD FACE denotes Committee Amendments. 1
	7128	+	2
	7129	+	3
	7130	+	4
	7131	+	5
	7132	+	6
	7133	+	7
	7134	+	8
	7135	+	9
	7136	+	10
	7137	+	11
	7138	+	12
	7139	+	13
	7140	+	14
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	7142	+	16
	7143	+	17
	7144	+	18
	7145	+	19
	7146	+	20
	7147	+	21
	7148	+	22
	7149	+	23
	7150	+	24
	7151	+
4146	7152		4. A record in a litigation file;
4147		-
4148	7153		5. A nonpublic record received from a person specified in
4149	7154		subsection A of Section 46 1-608 of this act title;
4150		-
4151	7155		6. A record obtained by the Administrato r through a designee of
4152	7156		the Administrator that a rule or order under this act determines has
4153	7157		been:
4154		-
4155	7158		a. expunged from the Administrator’s records by the
4156	7159		designee, or
4157		-
4158	7160		b. determined to be nonpublic or nondisclosable by that
4159	7161		designee if the Administrator finds the determination
4160	7162		to be in the public interest and necessary for the
4161	7163		protection of investors; and
4162		-
4163	7164		7. Any social security number, residential address unless used
4164	7165		as a business address , and residential telephone number containe d in
4165	7166		a record that is filed ; and
4166		-
4167		-
4168		-	ENR. S. B. NO. 1361 Page 96
4169	7167		8. Any records concerning a participant in the Department’s
4170	7168		investor education program that would be individual student records
4171	7169		or communications subject to the protections of Section 24A.16 of
4172	7170		Title 51 of the Oklahoma Statutes or the Family Educationa l Rights
4173	7171		and Privacy Act unle ss authorized for release by the parent or
4174	7172		guardian of the participant or by the participant if he or she is
4175	7173		eighteen (18) years of age or older .
4176		-
4177	7174		C. If disclosure is for the purpose of a civil or
4178	7175		administrative investigation, action, or proceeding brought by the
	7176	+
	7177	+	SB1361 HFLR Page 142
	7178	+	BOLD FACE denotes Committee Amendments. 1
	7179	+	2
	7180	+	3
	7181	+	4
	7182	+	5
	7183	+	6
	7184	+	7
	7185	+	8
	7186	+	9
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	7195	+	18
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	7197	+	20
	7198	+	21
	7199	+	22
	7200	+	23
	7201	+	24
	7202	+
4179	7203		Administrator or a criminal referral made by the Administrator or to
4180	7204		a person specified in subsection A of Section 46 1-608 of this act
4181	7205		title, the Administrator may disclose a record obtained in
4182	7206		connection with an audit or inspection under subsection K of Section
4183	7207		14 1-305 of this act title or subsection D of Section 27 1-410 of
4184	7208		this act title or a record obtained or created in connection with an
4185	7209		investigation under Section 40 1-602 of this act title so long as
4186	7210		the receiving person specified in subse ction A of Section 46 1-608
4187	7211		of this act title provides assurances to undertake such safeguards
4188	7212		as are necessary and appropriate to protect the confidentiality of
4189	7213		files to which access is granted and information derived therefro m.
4190		-
4191	7214		SECTION 39. AMENDATORY 71 O.S. 2021, Section 1-608, is
4192	7215		amended to read as follows:
4193		-
4194	7216		Section 1-608. A. The Administrator shall, in its discretion,
4195	7217		cooperate, coordinate, consult, and, subject to Section 45 1-607 of
4196	7218		this act title, share records and inf ormation with the securities
4197	7219		regulator of another stat e, Canada, a Canadian province or
4198	7220		territory, a foreign jurisdiction, the Securities and Exchange
4199	7221		Commission, the United States Department of Justice, the Commodity
4200	7222		Futures Trading Commission, the Federa l Trade Commission, the
4201	7223		Securities Investor Protection Corporation, a self-regulatory
4202	7224		organization, a national or international organization of securities
4203	7225		regulators, a federal or state banking and insurance regulator, and
4204	7226		a governmental law enforcement ag ency to effectuate greater
	7227	+
	7228	+	SB1361 HFLR Page 143
	7229	+	BOLD FACE denotes Committee Amendments. 1
	7230	+	2
	7231	+	3
	7232	+	4
	7233	+	5
	7234	+	6
	7235	+	7
	7236	+	8
	7237	+	9
	7238	+	10
	7239	+	11
	7240	+	12
	7241	+	13
	7242	+	14
	7243	+	15
	7244	+	16
	7245	+	17
	7246	+	18
	7247	+	19
	7248	+	20
	7249	+	21
	7250	+	22
	7251	+	23
	7252	+	24
	7253	+
4205	7254		uniformity in securities ma tters among the federal government, self-
4206	7255		regulatory organizations, states, and foreign governments.
4207		-
4208	7256		B. In cooperating, coordinating, consulting, and sharing
4209	7257		records and informat ion under this section a nd in acting by rule,
4210	7258		order, or waiver under this act, the Administrator shall, in its
4211		-
4212		-	ENR. S. B. NO. 1361 Page 97
4213	7259		discretion, take into consideration in carrying out the public
4214	7260		interest the following general policies:
4215		-
4216	7261		1. Maximizing effectiveness of regulatio n for the protection of
4217	7262		investors;
4218		-
4219	7263		2. Maximizing uniformity in federal and st ate regulatory
4220	7264		standards; and
4221		-
4222	7265		3. Minimizing burdens on the business of capital formation,
4223	7266		without adversely affecting essentials of investor protection.
4224		-
4225	7267		C. The cooperation, coo rdination, consultation, and sharing of
4226	7268		records and information authorized by this section includes:
4227		-
4228	7269		1. Establishing or employing one or more designees as a central
4229	7270		depository for registration and notice filings under this act and
4230	7271		for records required or allowed to be maintained under this act;
4231		-
4232	7272		2. Developing and maintaining unifor m forms;
4233		-
4234	7273		3. Conducting a joint examination or investigation;
4235		-
4236	7274		4. Holding a joint administrative hearing;
4237		-
4238	7275		5. Instituting and prosecuting a joint civil or administrative
4239	7276		proceeding;
4240		-
4241	7277		6. Sharing and exchanging personnel;
	7278	+
	7279	+	SB1361 HFLR Page 144
	7280	+	BOLD FACE denotes Committee Amendments. 1
	7281	+	2
	7282	+	3
	7283	+	4
	7284	+	5
	7285	+	6
	7286	+	7
	7287	+	8
	7288	+	9
	7289	+	10
	7290	+	11
	7291	+	12
	7292	+	13
	7293	+	14
	7294	+	15
	7295	+	16
	7296	+	17
	7297	+	18
	7298	+	19
	7299	+	20
	7300	+	21
	7301	+	22
	7302	+	23
	7303	+	24
4242	7304
4243	7305		7. Coordinating registrations under Sections 10 1-301 and 18 1-
4244	7306		401 through 21 1-404 of this act title and exemptions under Section
4245	7307		8 1-203 of this act title;
4246		-
4247	7308		8. Sharing and exchanging records, subject to Section 45 1-607
4248	7309		of this act title;
4249		-
4250	7310		9. Formulating rules, statements of policy, guidelines, forms,
4251	7311		and interpretative opinions and re leases;
4252		-
4253	7312		10. Formulating common systems and procedures;
4254		-
4255		-
4256		-	ENR. S. B. NO. 1361 Page 98
4257	7313		11. Notifying the public of proposed rules, forms, statements
4258	7314		of policy, and guidelines;
4259		-
4260	7315		12. Attending conferences and other meetings among securities
4261	7316		regulators, which may include representatives o f governmental and
4262	7317		private sector organizations involved in capital formation, deemed
4263	7318		necessary or appropriate to promote or achie ve uniformity; and
4264		-
4265	7319		13. Developing and maintaining a uniform exemption from
4266	7320		registration for small issuers, and taking other s teps to reduce the
4267	7321		burden of raising investment capital by small businesses.
4268		-
4269	7322		SECTION 40. AMENDATORY 71 O. S. 2021, Section 1-610, is
4270	7323		amended to read as follows:
4271		-
4272	7324		Section 1-610. A. Sections 10 1-301 and 11 1-302, subsection A
4273	7325		of Section 18 1-401, subsection A of Section 19 1-402, subsection A
4274	7326		of Section 20 1-403, subsection A of Section 21 1-404, and Sections
4275	7327		29, 34, 37 1-501, 1-506, 1-509 and 38 1-510 of this act title do not
4276	7328		apply to a person that sells or offers to sell a security unless the
	7329	+
	7330	+	SB1361 HFLR Page 145
	7331	+	BOLD FACE denotes Committee Amendments. 1
	7332	+	2
	7333	+	3
	7334	+	4
	7335	+	5
	7336	+	6
	7337	+	7
	7338	+	8
	7339	+	9
	7340	+	10
	7341	+	11
	7342	+	12
	7343	+	13
	7344	+	14
	7345	+	15
	7346	+	16
	7347	+	17
	7348	+	18
	7349	+	19
	7350	+	20
	7351	+	21
	7352	+	22
	7353	+	23
	7354	+	24
	7355	+
4277	7356		offer to sell or the sale is made in this state or the offer to
4278	7357		purchase or the purchase is made and accepted in this state.
4279		-
4280	7358		B. Subsection A of Se ction 18 1-401, subsection A of Section 19
4281	7359		1-402, subsection A of Section 20 1-403, subsection A of Section 21
4282	7360		1-404, and Sections 29, 34, 37 1-501, 1-506, 1-509 and 38 1-510 of
4283	7361		this act title do not apply to a person that purc hases or offers to
4284	7362		purchase a security unless the offer to purchase or the purchase is
4285	7363		made in this state or the offer to sell or the sale is made and
4286	7364		accepted in this state.
4287		-
4288	7365		C. For the purpose of this section, an offer to sell or to
4289	7366		purchase a security i s made in this state, whether or not either
4290	7367		party is then present in this state, if the offer:
4291		-
4292	7368		1. Originates from within this state; or
4293		-
4294	7369		2. Is directed by the offeror to a place in this state and
4295	7370		received at the place to which it is directed.
4296		-
4297		-
4298		-	ENR. S. B. NO. 1361 Page 99
4299	7371		D. For the purpose of this section, an o ffer to purchase or to
4300	7372		sell is accepted in this state, whet her or not either party is then
4301	7373		present in this state, if the acceptance:
4302		-
4303	7374		1. Is communicated to the offeror in this state and the offeree
4304	7375		reasonably believes the offer or to be present in this stat e and the
4305	7376		acceptance is received at the place in this state to which it is
4306	7377		directed; and
4307		-
4308	7378		2. Has not previously been communicated to the of feror, orally
4309	7379		or in a record, outside this state.
	7380	+
	7381	+	SB1361 HFLR Page 146
	7382	+	BOLD FACE denotes Committee Amendments. 1
	7383	+	2
	7384	+	3
	7385	+	4
	7386	+	5
	7387	+	6
	7388	+	7
	7389	+	8
	7390	+	9
	7391	+	10
	7392	+	11
	7393	+	12
	7394	+	13
	7395	+	14
	7396	+	15
	7397	+	16
	7398	+	17
	7399	+	18
	7400	+	19
	7401	+	20
	7402	+	21
	7403	+	22
	7404	+	23
	7405	+	24
4310	7406
4311	7407		E. An offer to sell or to purchase is not made in this state
4312	7408		when a publisher circulates or there is circulated on the
4313	7409		publisher’s behalf in this state a bona fide newspaper or other
4314	7410		publication of general , regular, and paid circulation that is not
4315	7411		published in this state, or that is publishe d in this state but has
4316	7412		had more than two thirds of its circulation outside this state
4317	7413		during the previous twelve (12) months or when a radio or television
4318	7414		program or other electronic communication originating outside this
4319	7415		state is received in this state. A radio or television progra m, or
4320	7416		other electronic communication is considered as havin g originated in
4321	7417		this state if either the broadcast studio or the originating sou rce
4322	7418		of transmission is located in this state, unless:
4323		-
4324	7419		1. The program or communication i s syndicated and distributed
4325	7420		from outside this state for redistribution to the general p ublic in
4326	7421		this state;
4327		-
4328	7422		2. The program or communication is supplied by a radio,
4329	7423		television, or other electronic network with the electronic signal
4330	7424		originating from outsid e this state for redistributi on to the
4331	7425		general public in this state;
4332		-
4333	7426		3. The program or communication is an electronic communication
4334	7427		that originates outside this state and is captured for
4335	7428		redistribution to the general public in this state by a community
4336	7429		antenna or cable, radio, cable television, or other electronic
4337	7430		system; or
4338	7431
4339		-
4340		-	ENR. S. B. NO. 1361 Page 100
	7432	+	SB1361 HFLR Page 147
	7433	+	BOLD FACE denotes Committee Amendments. 1
	7434	+	2
	7435	+	3
	7436	+	4
	7437	+	5
	7438	+	6
	7439	+	7
	7440	+	8
	7441	+	9
	7442	+	10
	7443	+	11
	7444	+	12
	7445	+	13
	7446	+	14
	7447	+	15
	7448	+	16
	7449	+	17
	7450	+	18
	7451	+	19
	7452	+	20
	7453	+	21
	7454	+	22
	7455	+	23
	7456	+	24
	7457	+
4341	7458		4. The program or communication consists of an electronic
4342	7459		communication that originates in this state, but which is not
4343	7460		intended for distribution to the general public in this state.
4344		-
4345	7461		F. Subsection A of Section 20 1-403, subsection A of Section 21
4346	7462		1-404, subsection A of Section 22 1-405, and Sections 30, 33 1-502,
4347	7463		1-505, and 34 1-506 of this act title apply to a person if the
4348	7464		person engages in an act, practice, or course of business
4349	7465		instrumental in effecting prohi bited or actionable conduct in this
4350	7466		state, whether or not either party is then present in this state.
4351		-
4352	7467		SECTION 41. AMENDATORY 71 O.S. 2021, Section 1 -612, is
4353	7468		amended to read as follows:
4354		-
4355	7469		Section 1-612. A. Unless otherwise provided for by law, the
4356	7470		following shall be the fees charg ed pursuant to the provisions of
4357	7471		this act:
4358		-
4359	7472		1. Broker-dealer registration fee or
4360	7473		renewal fee............................... $300.00
4361		-
4362	7474		2. Broker-dealer or issuer agent or
4363	7475		broker-dealer principal
4364	7476		registration fee or renewal fee............$50.00
4365		-
4366	7477		3. Broker-dealer agent on an inactive
4367	7478		basis, renewal fee......................... $10.00
4368		-
4369	7479		4. Investment adviser registration fee
4370	7480		or renewal fee............................ $300.00
4371	7481
	7482	+	SB1361 HFLR Page 148
	7483	+	BOLD FACE denotes Committee Amendments. 1
	7484	+	2
	7485	+	3
	7486	+	4
	7487	+	5
	7488	+	6
	7489	+	7
	7490	+	8
	7491	+	9
	7492	+	10
	7493	+	11
	7494	+	12
	7495	+	13
	7496	+	14
	7497	+	15
	7498	+	16
	7499	+	17
	7500	+	18
	7501	+	19
	7502	+	20
	7503	+	21
	7504	+	22
	7505	+	23
	7506	+	24
	7507	+
4372	7508		5. Investment adviser annual notice
4373	7509		filing fee................................ $300.00
4374		-
4375	7510		6. Investment adviser repres entative
4376	7511		registration fee or renewal fee ............$50.00
4377		-
4378	7512		7. Mass transfer fee........................... $10.00 per
4379		-
4380	7513		transferee
4381		-
4382	7514		8. Mailing list fee............................ $30.00 per year
4383		-
4384		-	ENR. S. B. NO. 1361 Page 101
4385		-
4386	7515		9. Review of sales literature package ..........$50.00
4387		-
4388	7516		10. Broker-dealer or investment adviser
4389	7517		financial or operating reports .............$50.00
4390		-
4391	7518		11. Issuer sales rep orts........................ $50.00
4392		-
4393	7519		12. Notice of exemption filing or
4394	7520		request for order of exemption ............$250.00
4395		-
4396	7521		13. Interpretive opinion or no-action
4397	7522		request................................ ...$250.00
4398		-
4399	7523		14. Affidavit request ........................... $10.00
4400		-
4401	7524		15. Service of process upon the
4402	7525		Administrator.............................. $10.00
4403		-
4404	7526		16. Amendments to registration
4405	7527		statements or notice filings
4406	7528		pursuant to Section 1-302 of this
4407	7529		title involving changes to the
4408	7530		issuer’s application or notice
4409	7531		filing form:
4410	7532
	7533	+	SB1361 HFLR Page 149
	7534	+	BOLD FACE denotes Committee Amendments. 1
	7535	+	2
	7536	+	3
	7537	+	4
	7538	+	5
	7539	+	6
	7540	+	7
	7541	+	8
	7542	+	9
	7543	+	10
	7544	+	11
	7545	+	12
	7546	+	13
	7547	+	14
	7548	+	15
	7549	+	16
	7550	+	17
	7551	+	18
	7552	+	19
	7553	+	20
	7554	+	21
	7555	+	22
	7556	+	23
	7557	+	24
	7558	+
4411	7559		a. examination fee....................... $50.00, and
4412		-
4413	7560		b. a filing fee computed in the same
4414	7561		manner as the filing fee requ ired
4415	7562		pursuant to of subsection B of
4416	7563		this section for any additional
4417	7564		securities being registered.
4418		-
4419	7565		17. Copying fee.
4420		-
4421	7566		a. 8 1/2” by 14” or smaller................$.25 per page
4422		-
4423	7567		b. Larger than 8 1/2” by 14”..............$1.00 per page
4424		-
4425	7568		c. Certified copy 8 1/2 ” by 14”
4426	7569		or smaller............................. $1.00 per page
4427		-
4428		-	ENR. S. B. NO. 1361 Page 102
4429		-
4430	7570		d. Certified copy larger than 8
4431	7571		1/2” by 14”............................ $2.00 per page
4432		-
4433	7572		18. Document search fee for commerc ial
4434	7573		purpose................................ ....$20.00 per hour
4435		-
4436	7574		19. Notice filing fee for a federal
4437	7575		covered security under Section 18
4438	7576		(b)(4) 18(b)(4)(D)(ii) and
4439	7577		(b)(4)(F) of the Securities Act of
4440	7578		1933 (15 U.S.C. Section
4441	7579		77r(b)(4)(D)(ii) and (b)(4)(F)............$250.00
4442		-
4443	7580		20. Late fee for late notice filin g for
4444	7581		a federal covered security under
4445	7582		Section 18(b)(4)(F) of the
	7583	+
	7584	+	SB1361 HFLR Page 150
	7585	+	BOLD FACE denotes Committee Amendments. 1
	7586	+	2
	7587	+	3
	7588	+	4
	7589	+	5
	7590	+	6
	7591	+	7
	7592	+	8
	7593	+	9
	7594	+	10
	7595	+	11
	7596	+	12
	7597	+	13
	7598	+	14
	7599	+	15
	7600	+	16
	7601	+	17
	7602	+	18
	7603	+	19
	7604	+	20
	7605	+	21
	7606	+	22
	7607	+	23
	7608	+	24
	7609	+
4446	7610		Securities Act of 1933 (15 U.S.C.
4447	7611		Section 77r(b)(4)(F) …………………$250.00
4448		-
4449	7612		B. For the purpose of registering secur ities under this act,
4450	7613		any person filing a registration statement shall pay an examination
4451	7614		fee of Two Hundred Dollars ($200.00) and a filing fee computed upon
4452	7615		the aggregate offering price of the securities sought to be
4453	7616		registered in Oklahoma as follows:
4454		-
4455	7617		a fee equal to one-tenth of one percent (1/10 of 1%)
4456	7618		of said price; provided, in no event shall the filing
4457	7619		fee be less than Two Hundred Dollars ($200.00) or more
4458	7620		than Two Thousand Five Hundred Dollars ($2,500.00).
4459		-
4460	7621		C. Any person making a notice filing pursuan t to subsection A
4461	7622		of Section 1-302 of this title, or renewing such a filing, shall pay
4462	7623		a filing fee of Five Hundred Dollars ($500.00) with each such notice
4463	7624		or renewal filed.
4464		-
4465	7625		D. A person required to pay a filing or notice fee unde r this
4466	7626		section may transmit the fee through or to a per son designated by
4467	7627		rule adopted or order issued under this act. All fees and other
4468	7628		charges collected by the Administrator shall be deposited in the
4469	7629		General Revenue Fund with the State Treasurer, except for the fees
4470	7630		deposited in the Oklahoma Department of S ecurities Revolving Fund
4471		-
4472		-	ENR. S. B. NO. 1361 Page 103
4473	7631		and the amounts deposited in the Oklahoma Department of Securities
4474	7632		Investor Education Revolving Fund.
	7633	+
	7634	+	SB1361 HFLR Page 151
	7635	+	BOLD FACE denotes Committee Amendments. 1
	7636	+	2
	7637	+	3
	7638	+	4
	7639	+	5
	7640	+	6
	7641	+	7
	7642	+	8
	7643	+	9
	7644	+	10
	7645	+	11
	7646	+	12
	7647	+	13
	7648	+	14
	7649	+	15
	7650	+	16
	7651	+	17
	7652	+	18
	7653	+	19
	7654	+	20
	7655	+	21
	7656	+	22
	7657	+	23
	7658	+	24
4475	7659
4476	7660		E. There is hereby created in the State Treasury a revolving
4477	7661		fund for the Oklahoma Department of Se curities to be designated the
4478	7662		“Oklahoma Department of Securities Revolving Fund”. The fund shall
4479	7663		be a continuing fund, not subject to fiscal year limitations, and
4480	7664		shall consist of fees and other charges collected by the
4481	7665		Administrator as follows:
4482		-
4483	7666		1. The fees collected pursuant to par agraphs 1, 4, 5, 8, 14,
4484	7667		15, 17 and 18 of subsection A of this section;
4485		-
4486	7668		2. The fees collected pursuant to the provisions of Section 1 -
4487	7669		504 of this title as provided in paragraph 9 of subsection A of thi s
4488	7670		section;
4489		-
4490	7671		3. The examination fees designated in parag raph 16 of
4491	7672		subsection A and in subsection B of this section;
4492		-
4493	7673		4. The amounts collected pursuant to subsection D of Section 1 -
4494	7674		605 of this title set forth in paragraph 13 of subsection A of this
4495	7675		section; and
4496		-
4497	7676		5. One Hundred Fifty Dollars ($150.00) of each fi ling fee
4498	7677		collected pursuant to subsection C of this section.
4499		-
4500	7678		The Oklahoma Department of Securities Revolving Fund shall be a
4501	7679		continuing fund, not subject to fiscal year limitations.
4502	7680		Expenditures from the Oklahoma Department of Securities Revolving
4503	7681		Fund shall be made pursuant to the laws of this state and the
4504	7682		statutes relating to the Oklahoma Department of Securities, and
4505	7683		without legislative appropriation. Expenditures from the Oklahoma
	7684	+
	7685	+	SB1361 HFLR Page 152
	7686	+	BOLD FACE denotes Committee Amendments. 1
	7687	+	2
	7688	+	3
	7689	+	4
	7690	+	5
	7691	+	6
	7692	+	7
	7693	+	8
	7694	+	9
	7695	+	10
	7696	+	11
	7697	+	12
	7698	+	13
	7699	+	14
	7700	+	15
	7701	+	16
	7702	+	17
	7703	+	18
	7704	+	19
	7705	+	20
	7706	+	21
	7707	+	22
	7708	+	23
	7709	+	24
	7710	+
4506	7711		Department of Securities Revolving Fund s hall be made upon warrants
4507	7712		issued by the State Treasurer against claims filed as prescribed by
4508	7713		law with the Director of the Office of Management and Enterprise
4509	7714		Services for approval and payment.
4510		-
4511	7715		F. There is hereby created in the State Treasury a revolving
4512	7716		fund for the Oklahoma Depart ment of Securities to be designated the
4513	7717		“Oklahoma Department of Securities Investor Education Revolving
4514	7718		Fund”. The fund shall be a continuing fund, not subject to fiscal
4515		-
4516		-	ENR. S. B. NO. 1361 Page 104
4517	7719		year limitations, and shall co nsist of all amounts colle cted
4518	7720		pursuant to court order or judgment in actions brought by the
4519	7721		Administrator, and amounts received in multistate settlements
4520	7722		participated in by the Department, and interest attributable to the
4521	7723		investment of the fund that shall be deposited in the Oklah oma
4522	7724		Department of Securities Investor Education Revolving Fund. The
4523	7725		Fund may be invested in any investment instrument allowed by
4524	7726		Oklahoma Statutes to the State Treasurer for the investment of state
4525	7727		funds. Any amounts received fr om any court settlement in excess of
4526	7728		One Million Dollars ($1,000,000.00) shall be transferred to the
4527	7729		General Fund. The Administrator shall use the moneys in this fund
4528	7730		exclusively for the specific purposes of research for education and
4529	7731		education of Oklahom a residents in matters con cerning securities
4530	7732		laws and general investor protection. The Oklahoma Department of
4531	7733		Securities Investor Education Revolving Fund shall be a continuing
4532	7734		fund, not subject to fiscal year limitations. Expenditures from the
	7735	+
	7736	+	SB1361 HFLR Page 153
	7737	+	BOLD FACE denotes Committee Amendments. 1
	7738	+	2
	7739	+	3
	7740	+	4
	7741	+	5
	7742	+	6
	7743	+	7
	7744	+	8
	7745	+	9
	7746	+	10
	7747	+	11
	7748	+	12
	7749	+	13
	7750	+	14
	7751	+	15
	7752	+	16
	7753	+	17
	7754	+	18
	7755	+	19
	7756	+	20
	7757	+	21
	7758	+	22
	7759	+	23
	7760	+	24
	7761	+
4533	7762		Oklahoma Department of Securities I nvestor Education Revolving F und
4534	7763		shall be made pursuant to the laws of this state and the statutes
4535	7764		relating to the Oklahoma Department of Securities, and without
4536	7765		legislative appropriation. Expenditures from the Oklahoma
4537	7766		Department of Securities Investor E ducation Revolving Fund shall be
4538	7767		made upon warrants issued by the State Treasurer against claims
4539	7768		filed as prescribed by law with the Director of the Office of
4540	7769		Management and Enterprise Services for approval and payment.
4541		-
4542	7770		G. There is hereby created a petty cash fund for the Oklahoma
4543	7771		Department of Securities. The Director of the Office of Management
4544	7772		and Enterprise Services and the Administrator are hereby authorized
4545	7773		and it shall be their duty to fix the maximum amount of the petty
4546	7774		cash fund, not to exceed Fi ve Hundred Dollars ($500.00). The
4547	7775		Director of the Office of Management and Enterprise Services shall
4548	7776		prescribe all forms, systems, and procedures for administering the
4549	7777		petty cash fund. The fund shall be used solely to pay:
4550		-
4551	7778		1. Examination, investigation and litigation expenses of th e
4552	7779		Department, including, but not limited to, court costs, filing fees,
4553	7780		copying fees, and witness fees; and
4554		-
4555	7781		2. Incidental operating expenses of the Department not to
4556	7782		exceed One Hundred Dollars ($100.00 ) per transaction.
4557		-
4558	7783		H. Once paid, fees shall be nonrefu ndable.
4559	7784
4560		-	ENR. S. B. NO. 1361 Page 105
	7785	+	SB1361 HFLR Page 154
	7786	+	BOLD FACE denotes Committee Amendments. 1
	7787	+	2
	7788	+	3
	7789	+	4
	7790	+	5
	7791	+	6
	7792	+	7
	7793	+	8
	7794	+	9
	7795	+	10
	7796	+	11
	7797	+	12
	7798	+	13
	7799	+	14
	7800	+	15
	7801	+	16
	7802	+	17
	7803	+	18
	7804	+	19
	7805	+	20
	7806	+	21
	7807	+	22
	7808	+	23
	7809	+	24
4561	7810
4562	7811		I. Section 211 of Title 62 of the Oklahoma Statutes shall not
4563	7812		apply to the Oklahoma Department of Securities or the Oklahoma
4564	7813		Securities Commission.
4565		-
4566	7814		SECTION 42. AMENDATORY 71 O.S. 2021, Section 803, is
4567	7815		amended to read as fo llows:
4568		-
4569	7816		Section 803. The following business opportunities a re exempt
4570	7817		from Sections 806 through 811 of this title:
4571		-
4572	7818		1. Any offer or sale of a business opportun ity for which the
4573	7819		immediate cash payment made by the purchaser for an y business
4574	7820		opportunity is at least Twenty-five Thousand Dollars ($25,000.00) if
4575	7821		the immediate cash payment does not exceed twenty percent (20%) of
4576	7822		the purchaser’s net worth as determined exclusive of principal
4577	7823		residence, furnishings therein, and automobile s. The Administrator
4578	7824		may by rule withdraw or further condition the availability of this
4579	7825		exemption.
4580		-
4581	7826		2. Any offer or sale of a business opportunity for which the
4582	7827		purchaser is required to make a payment to the se ller or a person
4583	7828		recommended by the seller no t to exceed Five Hundred Do llars
4584	7829		($500.00). For purposes of this paragraph, “payment” means the
4585	7830		total amount the purchaser becomes obligated to pay to the seller or
4586	7831		to any third party ei ther prior to or at the time of delivery of the
4587	7832		products, equipment, supplies or services or wit hin one (1) year of
4588	7833		the commencement of operation of the busi ness opportunity by the
4589	7834		purchaser. If payment is over a period of time, “payment” shall
	7835	+
	7836	+	SB1361 HFLR Page 155
	7837	+	BOLD FACE denotes Committee Amendments. 1
	7838	+	2
	7839	+	3
	7840	+	4
	7841	+	5
	7842	+	6
	7843	+	7
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	7858	+	22
	7859	+	23
	7860	+	24
	7861	+
4590	7862		include the sum of the down paymen t and the total periodic payments.
4591	7863		If the purchaser may enter at differ ent levels, “payment” means the
4592	7864		total sum the purchaser is ob ligated to pay to enter at the level
4593	7865		chosen by the purchaser.
4594		-
4595	7866		3. Any offer or sale of a business o pportunity where the sel ler
4596	7867		has a net worth of not less than One Mill ion Dollars ($1,000,000.00)
4597	7868		as determined on the basis of the seller’s most recent audited
4598	7869		financial statements, prepared within thirteen (13) months of such
4599	7870		offer or sale in accordance w ith generally accepted a ccounting
4600	7871		principles and audited in accordanc e with generally accepted
4601	7872		auditing standards. Net worth may be determined on a consolid ated
4602	7873		basis where the seller is at least eighty percent (80%) owned by one
4603		-
4604		-	ENR. S. B. NO. 1361 Page 106
4605	7874		person and that person ex pressly guarantees the o bligations of the
4606	7875		seller with regard to the o ffer or sale of any busines s opportunity
4607	7876		claimed to be exempt under this paragraph. The Administrator may by
4608	7877		rule withdraw or further condition the availability of this
4609	7878		exemption.
4610		-
4611	7879		4. Any offer or sale of a bus iness opportunity where the
4612	7880		purchaser has a net worth of not less than T wo Hundred Fifty
4613	7881		Thousand Dollars ($250,000.00). Net worth s hall be determined
4614	7882		exclusive of principal residence, furnishings therein, and
4615	7883		automobiles. The Adm inistrator may by rule w ithdraw or further
4616	7884		condition the availability of this exemption.
	7885	+
	7886	+	SB1361 HFLR Page 156
	7887	+	BOLD FACE denotes Committee Amendments. 1
	7888	+	2
	7889	+	3
	7890	+	4
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	7907	+	21
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	7909	+	23
	7910	+	24
4617	7911
4618	7912		5. Any offer or sale of a business opportunity where the
4619	7913		purchaser is a bank, savings and loan association, trust company,
4620	7914		insurance company, credit union, investment company as defined by
4621	7915		the Investment Company Act of 1940, pension or profit sharing trust
4622	7916		or other financial institution or institutional buyer or a dealer
4623	7917		registered pursuant to the Oklahoma Securities Act, where the
4624	7918		purchaser is acting for itself or in a fiduciary capacity.
4625		-
4626	7919		6. Any offer or sale of a business opportunity or franchise as
4627	7920		defined in Section 802 of this title provided that the seller
4628	7921		delivers to each purchaser fourteen (14) calendar days prior to the
4629	7922		earlier of the execution by a purchaser of any contract or agree ment
4630	7923		imposing a binding legal obligation on t he purchaser or the payment
4631	7924		by a purchaser of any consideration in connection with the o ffer or
4632	7925		sale of the business opportunity or franchise, one of the following
4633	7926		disclosure documents:
4634		-
4635	7927		a. A Uniform Franchise Of fering Circular a disclosure
4636	7928		document prepared in accordance with the guidel ines
4637	7929		adopted by the North American Securities
4638	7930		Administrators Association, Inc., or
4639		-
4640	7931		b. A a disclosure document prepared pursuant to the
4641	7932		Federal Trade Commission rule entitled Disclosure
4642	7933		Requirements and Prohibitions Co ncerning Franchising,
4643	7934		16 C.F.R. Section Part 436 or the Business Opportunity
4644	7935		Rule, 16 C.F.R. Part 437 as applicable.
4645	7936
4646		-
4647		-	ENR. S. B. NO. 1361 Page 107
	7937	+	SB1361 HFLR Page 157
	7938	+	BOLD FACE denotes Committee Amendments. 1
	7939	+	2
	7940	+	3
	7941	+	4
	7942	+	5
	7943	+	6
	7944	+	7
	7945	+	8
	7946	+	9
	7947	+	10
	7948	+	11
	7949	+	12
	7950	+	13
	7951	+	14
	7952	+	15
	7953	+	16
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	7959	+	22
	7960	+	23
	7961	+	24
	7962	+
4648	7963		For the purposes of this paragraph, a personal meet ing shall
4649	7964		mean a face-to-face meeting between the purch aser and the seller or
4650	7965		their representatives, which is held for the purpos e of discussing
4651	7966		the offer or sale of a business opportu nity. The Administrator may
4652	7967		by rule adopt any amendment to the Uniform Franchise Offering
4653	7968		Circular disclosure document that has been adopted by the North
4654	7969		American Securities Administrators Association , Inc. or any
4655	7970		amendment to the disclosure document prepared pursuant to the
4656	7971		Federal Trade Commission rule entitled Disclosure Requirements and
4657	7972		Prohibitions Concerning Franchising, 16 C.F.R. Section Part 436,
4658	7973		that has been adopted by the Federal Trade Commi ssion or the
4659	7974		Business Opportunity Rule, 16 C.F.R. Part 437 as applicable.
4660		-
4661	7975		7. Any offer or sale of a business opportunity f or which the
4662	7976		required cash payment made by a purchaser to p articipate in any
4663	7977		business opportunity does not exceed Seven Hundred Fifty Dollars
4664	7978		($750.00) and the required payment is made for :
4665		-
4666	7979		a. the not-for-profit sale of sales demonstration
4667	7980		equipment, material or samples, and/or
4668		-
4669	7981		b. product inventory sold to the pur chaser at a bona fide
4670	7982		wholesale price.
4671		-
4672	7983		8. Any offer or sale of a business opportunity which the
4673	7984		Administrator exempts by order o r a class of business opportunities
4674	7985		which the Administrator exempts by rule upon the finding that such
4675	7986		exemption would not be c ontrary to public interest and that
	7987	+
	7988	+	SB1361 HFLR Page 158
	7989	+	BOLD FACE denotes Committee Amendments. 1
	7990	+	2
	7991	+	3
	7992	+	4
	7993	+	5
	7994	+	6
	7995	+	7
	7996	+	8
	7997	+	9
	7998	+	10
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	8000	+	12
	8001	+	13
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	8012	+	24
	8013	+
4676	8014		registration would not be necessary or appropriate for the
4677	8015		protection of purchasers.
4678		-
4679	8016		9. Any business which is operated under a lease or license on
4680	8017		the premises of the lessor or licenser as long as such business is
4681	8018		incidental to the business conducted by th e lessor or the licenser
4682	8019		on such premises, including, without limitation, leased departments ,
4683	8020		licensed departments and concessions.
4684		-
4685	8021		SECTION 43. AMENDATORY 71 O.S. 2021, Section 807, is
4686	8022		amended to read as fol lows:
4687		-
4688	8023		Section 807. A. In order to register a business oppor tunity,
4689	8024		the seller shall file with the Administrator one of the following a
4690		-
4691		-	ENR. S. B. NO. 1361 Page 108
4692	8025		disclosure documents document prepared pursuant to Section 808 of
4693	8026		this title with the appropriate cover sheet as required by Section
4694	8027		808 of this title, a consent to service of process as specified in
4695	8028		subsection B of this section, the a ppropriate fee set forth in
4696	8029		Section 829 of this title, and any other information determined by
4697	8030		the Administrator to be necessary :
4698		-
4699	8031		1. A Uniform Franchise Offering Circu lar prepared in accordance
4700	8032		with the guidelines adopted by the North American Securities
4701	8033		Administrators Association, Inc. The Administrator may by rule
4702	8034		adopt any amendment to the Uniform Franch ise Offering Circular that
4703	8035		has been adopted by the North Americ an Securities Administrators
4704	8036		Association, Inc.;
4705	8037
	8038	+	SB1361 HFLR Page 159
	8039	+	BOLD FACE denotes Committee Amendments. 1
	8040	+	2
	8041	+	3
	8042	+	4
	8043	+	5
	8044	+	6
	8045	+	7
	8046	+	8
	8047	+	9
	8048	+	10
	8049	+	11
	8050	+	12
	8051	+	13
	8052	+	14
	8053	+	15
	8054	+	16
	8055	+	17
	8056	+	18
	8057	+	19
	8058	+	20
	8059	+	21
	8060	+	22
	8061	+	23
	8062	+	24
	8063	+
4706	8064		2. A disclosure document prepared pursu ant to the Federal Trade
4707	8065		Commission rule entitled Disclosure Requirements and Prohibitions
4708	8066		Concerning Franchising and Business Opportunity Ventures; 16 C.F.R.
4709	8067		Section 436. The Administrator may by rule adopt any amendment to
4710	8068		the disclosure document prepar ed pursuant to 16 C.F.R. Section 436
4711	8069		that has been adopted by the Federal Trade Commission; or
4712		-
4713	8070		3. A disclosure document prepared pursuant to Section 808 of
4714	8071		this title.
4715		-
4716	8072		B. Every seller shall file the consent to service of process
4717	8073		required by Section 818 o f this title.
4718		-
4719	8074		C. A registration automatically becomes effective upon the
4720	8075		expiration of fifteen (15) full business days after a complete
4721	8076		filing, provided that no order has been issued or that no proceeding
4722	8077		is pending pursuant to Section 810 of this title. The Administrator
4723	8078		may by order waive or reduce the time period prior to effectiveness,
4724	8079		provided that a complete filing has been made. The Administrator
4725	8080		may by order defer the effective date until the expiration of
4726	8081		fifteen (15) full business days after th e filing of any amendment.
4727	8082		For purposes of this subsection, a filing shall be deemed complete
4728	8083		upon receipt by the Administrator of the items described in
4729	8084		subsections A and B of this section.
4730		-
4731	8085		D. The registration is effective for one (1) year commencing on
4732	8086		the day of effectiveness and may be renewed annually upon the filing
4733	8087		of a current disclosure document ac companied by any documents or
4734	8088
4735		-	ENR. S. B. NO. 1361 Page 109
	8089	+	SB1361 HFLR Page 160
	8090	+	BOLD FACE denotes Committee Amendments. 1
	8091	+	2
	8092	+	3
	8093	+	4
	8094	+	5
	8095	+	6
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	8110	+	21
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	8112	+	23
	8113	+	24
	8114	+
4736	8115		information that the Administrato r may by rule or order require. A
4737	8116		renewal fee as set forth in Section 829 of this title shall
4738	8117		accompany each request for renewal. Failure to renew upon the close
4739	8118		of the one-year period of effectiveness will result in expiration of
4740	8119		the registration. The Administrator may by rule or order require
4741	8120		the filing of a sales report and payment of a report filing fee as
4742	8121		set forth in Section 829 of this title.
4743		-
4744	8122		E. The Administrator may by rule or order require the filing of
4745	8123		all proposed literature or advertising pr ior to its use and payment
4746	8124		of the review fee as set forth in Section 829 of this title f or each
4747	8125		sales literature or advertising package.
4748		-
4749	8126		SECTION 44. AMENDATORY 71 O.S. 2021, Section 809, is
4750	8127		amended to read as follows:
4751		-
4752	8128		Section 809. A. It is unlawful for any perso n to offer or sell
4753	8129		any business opportunity, as defined in Section 2 802 of the
4754	8130		Oklahoma Business Opportunity Sales Act this title, unless the
4755	8131		business opportunity contract or agreement is in writing and a copy
4756	8132		of the contract or agreement is given to the purchaser at the time
4757	8133		the purchaser signs the contract or agreement.
4758		-
4759	8134		B. Contracts or agreements shall set forth in at least ten -
4760	8135		point type the following:
4761		-
4762	8136		1. The terms and conditions of any and all payments due to the
4763	8137		seller;
	8138	+
	8139	+	SB1361 HFLR Page 161
	8140	+	BOLD FACE denotes Committee Amendments. 1
	8141	+	2
	8142	+	3
	8143	+	4
	8144	+	5
	8145	+	6
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4764	8164
4765	8165		2. The seller’s principal business address and the name and
4766	8166		address of the seller ’s agent in this state authorized to receive
4767	8167		service of process;
4768		-
4769	8168		3. The business form of the seller, wh ether corporate,
4770	8169		partnership or otherwise;
4771		-
4772	8170		4. The delivery date o r, when the contract provides for a
4773	8171		periodic delivery of items to the purchaser, the app roximate
4774	8172		delivery date of the product, equipment or supplies the seller is to
4775	8173		deliver to the purchaser to enable the purchaser to start his or her
4776	8174		business; and
4777		-
4778		-
4779		-	ENR. S. B. NO. 1361 Page 110
4780	8175		5. Whether the product, equipment or su pplies are to be
4781	8176		delivered to the purchaser’s home or business address or are to be
4782	8177		placed or caused to be placed by the seller at locations owned or
4783	8178		managed by persons other than the purchaser.
4784		-
4785	8179		SECTION 45. AMENDATORY 71 O.S. 2021, Section 811, is
4786	8180		amended to read as follows:
4787		-
4788	8181		Section 811. In connection with the offer or sale of a business
4789	8182		opportunity, no seller may make or use any of the representations
4790	8183		set forth in divisions (4) and (5) of subparagr aph a of paragraph 3
4791	8184		of Section 2 802 of the Oklahoma Business Opportunity Sales Act this
4792	8185		title unless the seller has at all times a minimum net worth of
4793	8186		Fifty Thousand Dollars ($50,000.00) as determined in accordance with
4794	8187		generally accepted accounting pri nciples.
4795	8188
	8189	+	SB1361 HFLR Page 162
	8190	+	BOLD FACE denotes Committee Amendments. 1
	8191	+	2
	8192	+	3
	8193	+	4
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	8213	+	24
	8214	+
4796	8215		SECTION 46. AMENDATORY 71 O.S. 2021, Section 814, is
4797	8216		amended to read as follows:
4798		-
4799	8217		Section 814. A. Whenever it appears to the Administrator that
4800	8218		any person has engaged in or is about to engage in any act or
4801	8219		practice constituting a violation of any provision of the Oklahoma
4802	8220		Business Opportunity Sales Act or any rule or order hereunder, the
4803	8221		Administrator may:
4804		-
4805	8222		1. Issue an order directing each person to cease and desist
4806	8223		from continuing the act or practice and/or issue an order imposing a
4807	8224		civil penalty up to a maximum of Five Thousand Dollars ($5,000.00)
4808	8225		for a single violation or transaction or of Fifty Thousand Dollars
4809	8226		($50,000.00) for multiple violations or transactions in a single
4810	8227		proceeding or a series of rela ted proceedings; or
4811		-
4812	8228		2. Prior to, concurrently with, or subsequent to an
4813	8229		administrative proceeding pursuant to paragraph 1 of this
4814	8230		subsection, bring an action in the district court of Oklahoma County
4815	8231		or the district court in any other county where service can be
4816	8232		obtained on one or more of the defendants to enjoin the acts or
4817	8233		practices and to enforce compliance with the Oklahoma Business
4818	8234		Opportunity Sales Act or any rule or order hereunder. Upon a proper
4819	8235		showing, a permanent or temporary injunction, restrai ning order or
4820	8236		writ of mandamus shall be granted and a receiver or conservator may
4821	8237		be appointed for the defendant or the defendant’s assets or the
4822		-
4823		-	ENR. S. B. NO. 1361 Page 111
4824	8238		court may order rescission, which shall include restitution plus the
	8239	+
	8240	+	SB1361 HFLR Page 163
	8241	+	BOLD FACE denotes Committee Amendments. 1
	8242	+	2
	8243	+	3
	8244	+	4
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	8246	+	6
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	8260	+	20
	8261	+	21
	8262	+	22
	8263	+	23
	8264	+	24
	8265	+
4825	8266		legal interest rate, for any sales of bus iness opportunities
4826	8267		determined to be unlawful pursuant to the Oklahoma Business
4827	8268		Opportunity Sales Act or any rule or order hereunder. The court
4828	8269		shall not require the Administrator to post a bond. No costs shall
4829	8270		be assessed for or against the Administrato r in a proceeding under
4830	8271		the Oklahoma Business Opportunity Sales Act brought by or against
4831	8272		the Administrator in any court except as otherwise provided by law
4832	8273		In an action under this section and upon a proper showing, the court
4833	8274		may:
4834		-
4835	8275		a. issue a permanent or temporary injunction, restraining
4836	8276		order, or declaratory judgment,
4837		-
4838	8277		b. order other appropriate or anci llary relief which may
4839	8278		include:
4840		-
4841	8279		(1) an asset freeze, accounting, writ of attachment,
4842	8280		writ of general or specifi c execution, and
4843	8281		appointment of a receiver or conservator, that
4844	8282		may be the Administrator, for the defendant or
4845	8283		the defendant’s assets,
4846		-
4847	8284		(2) ordering the Administrator to take charge and
4848	8285		control of a defendan t’s property including
4849	8286		investment accounts and accounts in a depository
4850	8287		institution, rents, and profits; to collect
4851	8288		debts; and to acquire and di spose of property,
	8289	+
	8290	+	SB1361 HFLR Page 164
	8291	+	BOLD FACE denotes Committee Amendments. 1
	8292	+	2
	8293	+	3
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	8310	+	20
	8311	+	21
	8312	+	22
	8313	+	23
	8314	+	24
4852	8315
4853	8316		(3) imposing a civil penalty in an amount not to
4854	8317		exceed Five Thousand Dollars ($5,000.00) for a
4855	8318		single violation or in an amount not to ex ceed
4856	8319		Two Hundred Fifty Thousand Dollars ($250, 000.00)
4857	8320		for more than one violation; an order of
4858	8321		rescission, restitution, or disgorgement directed
4859	8322		to a person who has engaged in an act, practice,
4860	8323		or course of business constituting a violation of
4861	8324		this act or a rule adopted or order issued under
4862	8325		this act, and
4863		-
4864	8326		(4) ordering the payment of prejudgment and
4865	8327		postjudgment interest, or
4866		-
4867		-	ENR. S. B. NO. 1361 Page 112
4868		-
4869	8328		c. order such other relief as the court considers
4870	8329		appropriate.
4871		-
4872	8330		B. Except as provided in subsection D of this section or unless
4873	8331		the right to notice and hear ing is waived by the person agains t whom
4874	8332		the sanction is imposed, the sanctions provided in paragra ph 1 of
4875	8333		subsection A of this secti on may be imposed only after notice and
4876	8334		opportunity for hearing as required by the Administrative Procedures
4877	8335		Act. If the person to whom notice is addressed does not request a
4878	8336		hearing within fifteen (15) days after the ser vice of the notice, a
4879	8337		final order as provided for in subsection A of this section may be
4880	8338		issued.
4881	8339
	8340	+	SB1361 HFLR Page 165
	8341	+	BOLD FACE denotes Committee Amendments. 1
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	8364	+	24
	8365	+
4882	8366		C. For purposes of determining any sanction to be imposed u nder
4883	8367		subsection A of this section, the Administrator shall consider,
4884	8368		among other factors, the frequ ency and persistence of the conduc t
4885	8369		constituting a violation of the Oklahoma Business Opportunity Sales
4886	8370		Act or a rule or order of the Administrator under the Oklahoma
4887	8371		Business Opportunity Sal es Act, the number of persons adversely
4888	8372		affected by the conduct, and the resources of the person co mmitting
4889	8373		the violation.
4890		-
4891	8374		D. 1. If the Administrator makes written findings of fact to
4892	8375		support the conclusion that the publ ic interest will be harmed by
4893	8376		delay in issuing a cease and desist order pursuant to paragraph 1 of
4894	8377		subsection A of this section, the Administrator may issue a summary
4895	8378		order pending the hearing required by subsection B of this section.
4896		-
4897	8379		Upon the entry of the summary order, the Administrator shall
4898	8380		promptly notify the person subject to the summary order:
4899		-
4900	8381		a. that the summary order has been e ntered and the
4901	8382		reasons therefor,
4902		-
4903	8383		b. that the person subject to the summary order, if
4904	8384		desiring a hearing, must make written request for a
4905	8385		hearing to the Admin istrator within fifteen (15) days
4906	8386		after service of the notice is effective,
4907		-
4908	8387		c. that within fifteen (15) days after receipt by the
4909	8388		Administrator of a written request the matter will be
4910		-
4911		-	ENR. S. B. NO. 1361 Page 113
4912	8389		set for hearing to determine whether t he summary order
	8390	+
	8391	+	SB1361 HFLR Page 166
	8392	+	BOLD FACE denotes Committee Amendments. 1
	8393	+	2
	8394	+	3
	8395	+	4
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	8413	+	22
	8414	+	23
	8415	+	24
	8416	+
4913	8417		should be modified, vacated or extended pending final
4914	8418		determination of any proceed ing under paragraph 1 of
4915	8419		subsection A of this section, and
4916		-
4917	8420		d. that a hearing shall be commenced within fifteen (15)
4918	8421		days of the matter being set for hearing.
4919		-
4920	8422		2. The summary order shall remai n in effect until the
4921	8423		conclusion of the hearing on the summary or der unless the
4922	8424		Administrator or the Administrator’s designee extends the summary
4923	8425		order pending a final determination of any proceeding under
4924	8426		paragraph 1 of subsection A of this section. If n o hearing is
4925	8427		requested and none is ordered by the Administrator, the summary
4926	8428		order will remain in e ffect until it is modified or vacated by the
4927	8429		Administrator or the Administrator ’s designee. If a request for
4928	8430		hearing on the summary order is timely made and if the hearing is
4929	8431		not commenced by the Administrator within the time limit set forth
4930	8432		above, the summary order shall dissolve and a cease and desist order
4931	8433		shall not be issued pursuant to paragraph 1 of subsection A of this
4932	8434		section except upon reasonable no tice and opportunity for a hearing
4933	8435		as provided in subsection B of this section.
4934		-
4935	8436		E. When the Administrator has authority to institute an action
4936	8437		or proceeding pursuant to this section, the Administrator may accept
4937	8438		an assurance of discontinuance of an act or practice that is alleged
4938	8439		to be unlawful under Section 819 of thi s title from the person who
4939	8440		is alleged to have engaged or be about to engage in the act or
	8441	+
	8442	+	SB1361 HFLR Page 167
	8443	+	BOLD FACE denotes Committee Amendments. 1
	8444	+	2
	8445	+	3
	8446	+	4
	8447	+	5
	8448	+	6
	8449	+	7
	8450	+	8
	8451	+	9
	8452	+	10
	8453	+	11
	8454	+	12
	8455	+	13
	8456	+	14
	8457	+	15
	8458	+	16
	8459	+	17
	8460	+	18
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	8462	+	20
	8463	+	21
	8464	+	22
	8465	+	23
	8466	+	24
	8467	+
4940	8468		practice. The assurance shall not constitute an admission of guil t.
4941	8469		The assurance may include a st ipulation for any or all of the
4942	8470		following:
4943		-
4944	8471		1. The voluntary paym ent by the person for the costs of
4945	8472		investigation;
4946		-
4947	8473		2. An amount to be held in escrow pending the outcome of an
4948	8474		action; or
4949		-
4950	8475		3. An amount for restitution to an aggrieved person.
4951		-
4952	8476		An assurance of discontinuance shall be in writing and filed
4953	8477		with the Administrator. Unless rescinded by the part ies or voided
4954		-
4955		-	ENR. S. B. NO. 1361 Page 114
4956	8478		by a court for good cause, the assurance may be enforced in the
4957	8479		district court of Oklahoma County by the part ies to the assurance.
4958	8480		The assurance may be modified by the parties or by a court for good
4959	8481		cause.
4960		-
4961	8482		SECTION 47. AMENDATORY 71 O.S. 2021, Section 824, is
4962	8483		amended to read as follows:
4963		-
4964	8484		Section 824. A. Any person who violates Section 6 806,
4965	8485		subsection A of Section 8 808, subsection A of Section 9 809 or
4966	8486		Section 11 811 of the Oklahoma Business Opportunity Sales Act this
4967	8487		title, is liable to the purchaser who may sue either at law or in
4968	8488		equity for rescission, for recovery of all money and other valuable
4969	8489		consideration paid f or the business opportunity and for actual
4970	8490		damages, together with i nterest at the legal rate from t he date of
4971	8491		sale, reasonable attorney’s fees and court costs.
4972	8492
	8493	+	SB1361 HFLR Page 168
	8494	+	BOLD FACE denotes Committee Amendments. 1
	8495	+	2
	8496	+	3
	8497	+	4
	8498	+	5
	8499	+	6
	8500	+	7
	8501	+	8
	8502	+	9
	8503	+	10
	8504	+	11
	8505	+	12
	8506	+	13
	8507	+	14
	8508	+	15
	8509	+	16
	8510	+	17
	8511	+	18
	8512	+	19
	8513	+	20
	8514	+	21
	8515	+	22
	8516	+	23
	8517	+	24
	8518	+
4973	8519		B. Any person who violates Section s 19, 21 819, 821, or 22 822
4974	8520		of the Oklahoma Business Opportunity Sales Act this title is liable
4975	8521		to the purchaser who may sue ei ther at law or in equity for
4976	8522		rescission, for recovery of all money or other valuable
4977	8523		consideration paid for the business opportun ity and for actual
4978	8524		damages, together with interest at the legal rate fr om the date of
4979	8525		sale, reasonable attorney’s fees and court costs.
4980		-
4981	8526		SECTION 48. AMENDATORY 71 O.S. 2021, Section 825, is
4982	8527		amended to read as follows:
4983		-
4984	8528		Section 825. Any person who controls or materially aids a
4985	8529		person liable under Sectio ns 22 822 or 23 823 of this act title
4986	8530		shall be liable jointly and severally with and t o the same extent as
4987	8531		the person committing the violation.
4988		-
4989	8532		SECTION 49. AMENDATORY 71 O.S. 2021, Section 826, is
4990	8533		amended to read as follows:
4991		-
4992	8534		Section 826. A. No action shall be maintained under subsecti on
4993	8535		A of Section 24 824 of this act title unless commenced before the
4994	8536		expiration of three (3) years after the act or transaction
4995	8537		constituting the sale. No action shall be maintained under
4996	8538		subsection B of Section 24 824 of this act title unless commenced
4997	8539		before the expiration of two (2) y ears after the untruth or omission
4998		-
4999		-	ENR. S. B. NO. 1361 Page 115
5000	8540		was, or in the exercise of reasonable care should have been,
5001	8541		discovered, or such longer term of limitation as may be otherwise
5002	8542		provided by law.
5003	8543
	8544	+	SB1361 HFLR Page 169
	8545	+	BOLD FACE denotes Committee Amendments. 1
	8546	+	2
	8547	+	3
	8548	+	4
	8549	+	5
	8550	+	6
	8551	+	7
	8552	+	8
	8553	+	9
	8554	+	10
	8555	+	11
	8556	+	12
	8557	+	13
	8558	+	14
	8559	+	15
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	8561	+	17
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	8563	+	19
	8564	+	20
	8565	+	21
	8566	+	22
	8567	+	23
	8568	+	24
	8569	+
5004	8570		B. The rights and remedies under the Oklahoma Business
5005	8571		Opportunity Sales Act are in addition to any other rights or
5006	8572		remedies that may exist at law or in equity.
5007		-
5008	8573		C. Any condition, stipulation or provision binding any
5009	8574		purchaser of a business opp ortunity to waive compliance with or
5010	8575		relieving a person from any duty or liability impos ed by or any
5011	8576		right provided by the Oklahoma Business Opportunity Sales Act or any
5012	8577		rule or order issued pursuant to the act is void.
5013		-
5014	8578		SECTION 50. AMENDATORY 71 O.S. 2021, Section 828, is
5015	8579		amended to read as follows:
5016		-
5017	8580		Section 828. All of the administrative procedures applicable to
5018	8581		investigations and proceedings conducted pursuant to the Oklahoma
5019	8582		Securities Act Oklahoma Uniform Securities Act of 2004 which are not
5020	8583		in conflict with the provisions of this act title shall apply to any
5021	8584		offer and/or sale of a business opportunity in this state.
5022		-
5023	8585		SECTION 51. AMENDATORY 85 O.S. 2021, Section 398, is
5024	8586		amended to read as follows:
5025		-
5026	8587		Section 398. A. The Workers’ Compensation Court shall adopt
5027	8588		rules permitting two or more emplo yers not otherwise subject to the
5028	8589		provisions of Section 2b o f this title to pool together liabilities
5029	8590		under this act for the purpose of qualif ying as a group self-insurer
5030	8591		and each such employer shall be classified as a self -insurer.
5031		-
5032	8592		B. The Court shall app rove the distribution of all
5033	8593		undistributed policyholders ’ surplus of a Workers’ Compensation
	8594	+
	8595	+	SB1361 HFLR Page 170
	8596	+	BOLD FACE denotes Committee Amendments. 1
	8597	+	2
	8598	+	3
	8599	+	4
	8600	+	5
	8601	+	6
	8602	+	7
	8603	+	8
	8604	+	9
	8605	+	10
	8606	+	11
	8607	+	12
	8608	+	13
	8609	+	14
	8610	+	15
	8611	+	16
	8612	+	17
	8613	+	18
	8614	+	19
	8615	+	20
	8616	+	21
	8617	+	22
	8618	+	23
	8619	+	24
	8620	+
5034	8621		Self-Insurance Program if the Program complies wi th the following
5035	8622		criteria:
5036		-
5037	8623		1. Has been in business for at least five (5) years;
5038		-
5039	8624		2. Has its financial statements audited by a public accounting
5040	8625		firm which audits at least on e corporate client which has assets in
5041	8626		excess of One Billion Dollars ($1,000,000,0 00.00) and on which the
5042		-
5043		-	ENR. S. B. NO. 1361 Page 116
5044	8627		accounting firm has issued an unqualified opinion as to th e fair
5045	8628		presentation of the finan cial position of the Program showing
5046	8629		adequate solvency and r eserves; and
5047		-
5048	8630		3. Is in compliance with the provisions of this title and all
5049	8631		other regulations as required by the Court.
5050		-
5051	8632		C. A group self-insurer created pursuant to this section either
5052	8633		prior to or after the effective date of this act shall not be
5053	8634		subject to the provisions of the Oklahoma Securities Act Oklahoma
5054	8635		Uniform Securities Act of 2004.
5055		-
5056	8636		SECTION 52. AMENDATORY 85A O.S. 2021, Section 102, is
5057	8637		amended to read as follows:
5058		-
5059	8638		Section 102. A. The Workers’ Compensation Commission shall
5060	8639		adopt rules permitting two or more employers, not otherwise subject
5061	8640		to the provisions of Section 150 of thi s act, to pool together
5062	8641		liabilities under this act for the purpose of qualifying as a gr oup
5063	8642		self-insurer and each such employer shall be classified as a se lf-
5064	8643		insurer.
5065	8644
	8645	+	SB1361 HFLR Page 171
	8646	+	BOLD FACE denotes Committee Amendments. 1
	8647	+	2
	8648	+	3
	8649	+	4
	8650	+	5
	8651	+	6
	8652	+	7
	8653	+	8
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	8655	+	10
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	8660	+	15
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	8663	+	18
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	8665	+	20
	8666	+	21
	8667	+	22
	8668	+	23
	8669	+	24
	8670	+
5066	8671		B. The Commission shall approve the distribution of all
5067	8672		undistributed policyholders ’ surplus of a Workers’ Compensation
5068	8673		Self-Insurance Program if the Program complies with the following
5069	8674		criteria:
5070		-
5071	8675		1. Has been in business for at least five (5) years;
5072		-
5073	8676		2. Has its financial statements audited by a public accounting
5074	8677		firm which audits at least one corporate client which has assets in
5075	8678		excess of One Billion Dollars ($1,000,000,000.00) and on which the
5076	8679		accounting firm has issued an unqualified opinion as to the fair
5077	8680		presentation of the financial position of the Program showing
5078	8681		adequate solvency and re serves; and
5079		-
5080	8682		3. Is in compliance with the provisions of this act and all
5081	8683		other regulations as required by the Commission.
5082		-
5083	8684		C. A group self-insurer created pursuant to this section either
5084	8685		prior to or after the effective date of this act shall not be
5085		-
5086		-	ENR. S. B. NO. 1361 Page 117
5087	8686		subject to the provisions of the Oklahoma Securities Act Oklahoma
5088	8687		Uniform Securities Act of 200 4.
5089		-
5090	8688		SECTION 53. This act shall become effective November 1, 2022.
5091	8689
5092		-
5093		-	ENR. S. B. NO. 1361 Page 118
5094		-	Passed the Senate the 21st day of February, 2022.
5095		-
5096		-
5097		-
5098		-	Presiding Officer of the Senate
5099		-
5100		-
5101		-	Passed the House of Representatives the 19th day of April, 2022.
5102		-
5103		-
5104		-
5105		-	Presiding Officer of the House
5106		-	of Representatives
5107		-
5108		-	OFFICE OF THE GOVERNOR
5109		-	Received by the Office of the Governor this _______ _____________
5110		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
5111		-	By: _______________________________ __
5112		-	Approved by the Governor of the State of Oklahoma this _____ ____
5113		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
5114		-
5115		-	_________________________________
5116		-	Governor of the State of Oklahoma
5117		-
5118		-
5119		-	OFFICE OF THE SECRETARY OF STATE
5120		-	Received by the Office of the Secretary of State this _______ ___
5121		-	day of __________________, 20 _______, at _______ o'clock _______ M.
5122		-	By: _______________________________ __
	8690	+	COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
	8691	+	PENSIONS, dated 04/0 4/2022 - DO PASS.