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Oklahoma OK
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2022 Regular Session
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SB1425
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Oklahoma Senate Bill SB1425

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Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1425 Compare Versions

Only one version of the bill is available at this time.

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3
4	4		Req. No. 3264 Page 1 1
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53	53		STATE OF OKLAHOMA
54	54
55	55		2nd Session of the 58th Legislature (2022)
56	56
57	57		SENATE BILL 1425 By: Montgomery
58	58
59	59
60	60
61	61
62	62
63	63		AS INTRODUCED
64	64
65	65		An Act relating to the Oklahoma Uniform Securities
66	66		Act of 2004; amending 71 O.S. 2 021, Section 1-102,
67	67		which relates to defin itions; modifying definition;
68	68		and providing an effective date .
69	69
70	70
71	71
72	72
73	73		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
74	74		SECTION 1. AMENDATORY 71 O.S. 2021, Section 1 -102, is
75	75		amended to read as follows:
76	76		Section 1-102. In this act, unless the context otherwise
77	77		requires:
78	78		1. “Administrator” means the securities Administrator appointed
79	79		by the Oklahoma Securities Commission ;
80	80		2. “Agent” means an individual, other than a broker -dealer, who
81	81		represents a broker-dealer in effecting or att empting to effect
82	82		purchases or sales of securities or represents an issuer in
83	83		effecting or attempting to effect purchases or sales of the issue r’s
84	84		securities. A partner, officer, or director of a broker -dealer or
85	85		issuer, or an individual having a similar status or performing
86	86		similar functions is an agent only if the individual otherwise comes
87	87
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138	138		within the term. The term does not include an indivi dual excluded
139	139		by rule adopted or order issued under this act ;
140	140		3. “Bank” means:
141	141		a. a banking institution organize d under the laws of the
142	142		United States,
143	143		b. a member bank of the Federal Reserve System ,
144	144		c. any other banking institution, whether incorporated o r
145	145		not, doing business under the laws of a state or of
146	146		the United States, a substantial portion of the
147	147		business of which consists of receiving deposits or
148	148		exercising fiduciary powers similar to those permitted
149	149		to be exercised by national banks under the aut hority
150	150		of the Comptroller of the Currency pursuant to Section
151	151		1 of Public Law 87-722 (12 U.S.C. Section 92a), and
152	152		which is supervised and examined by a state or federal
153	153		agency having supervision over banks, and which is not
154	154		operated for the purpose of evad ing this act, and
155	155		d. a receiver, conservator, or other liquidat ing agent of
156	156		any institution or firm included in s ubparagraph a, b
157	157		or c of this paragraph;
158	158		4. “Broker-dealer” means a person engaged in the business of
159	159		effecting transactions in securities for the account of others or
160	160		for the person’s own account. The te rm does not include:
161	161		a. an agent,
162	162
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213	213		b. an issuer,
214	214		c. a bank or savings institution if its activities as a
215	215		broker-dealer are limited to those specified in
216	216		subsections 3(a)(4)(B)(i) through (vi), ( viii) through
217	217		(x), and (xi) if limited to unsolicited transacti ons;
218	218		3(a)(5)(B); and 3(a)(5)(C) of the Securities Exchange
219	219		Act of 1934 (15 U.S.C . Sections 78c(a)(4) and (5)) or
220	220		a bank that satisfies the conditions described in
221	221		subsection 3(a)(4)(E) of the S ecurities Exchange Act
222	222		of 1934 (15 U.S.C. Section 78c(a)(4)),
223	223		d. an international banking institution , or
224	224		e. a person excluded by rule adopted or order issued
225	225		under this act;
226	226		5. “Commission” means the Oklahoma Securities Commission;
227	227		6. “Department” means the Oklahoma Department of Securities;
228	228		7. “Depository institution” means:
229	229		a. a bank, or
230	230		b. a savings institutio n, trust company, credit union, or
231	231		similar institution that is organized or chartered
232	232		under the laws of a state or of the United States,
233	233		authorized to receive deposits, and supervised and
234	234		examined by an official or agency of a state or the
235	235		United States if its deposits or share accounts are
236	236		insured to the maximum amount authorized by statute by
237	237
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288	288		the Federal Deposit Insurance Corporation, the
289	289		National Credit Union Share Insurance Fund, or a
290	290		successor authorized by federal law. The term does
291	291		not include:
292	292		(1) an insurance company or other organization
293	293		primarily engaged in the business of insurance ,
294	294		(2) a Morris Plan bank, or
295	295		(3) an industrial loan co mpany;
296	296		8. “Federal covered investment adviser ” means a person
297	297		registered under the Investment Advisers Act of 19 40;
298	298		9. “Federal covered security ” means a security that is, or upon
299	299		completion of a transaction will be, a covered security under
300	300		Section 18(b) of the Securities Act of 1933 (15 U.S.C . Section
301	301		77r(b)) or rules or regulations adopted pursuant to that provi sion;
302	302		10. “Filing” means the receipt under this act of a record by
303	303		the Administrator or a designee of the Administrator ;
304	304		11. “Fraud,” “deceit,” and “defraud” are not limited to common
305	305		law deceit;
306	306		12. “Guaranteed” means guaranteed as to payment of all
307	307		principal and all interest ;
308	308		13. “Institutional investor ” means any of the following,
309	309		whether acting for itself or for others in a fiduciary capa city:
310	310		a. a depository institution or international banking
311	311		institution,
312	312
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363	363		b. an insurance company,
364	364		c. a separate account of an insurance company ,
365	365		d. an investment company as defined in the Investment
366	366		Company Act of 1940,
367	367		e. a broker-dealer registered under t he Securities
368	368		Exchange Act of 1934 ,
369	369		f. an employee pension, pro fit-sharing, or benefit plan
370	370		if the plan has total assets in excess of Ten Million
371	371		Dollars ($10,000,000.00) or its investment decisions
372	372		are made by a named fiduciary, as defined in the
373	373		Employee Retirement Income Security Act of 1974, that
374	374		is a broker-dealer registered under the Securities
375	375		Exchange Act of 1934, an investment adviser registered
376	376		or exempt from registration under the Investment
377	377		Advisers Act of 1940, an investment adviser registered
378	378		under this act, a depository institution, or an
379	379		insurance company,
380	380		g. a plan established and maintained by a stat e, a
381	381		political subdivision of a state, or an agency or
382	382		instrumentality of a state or a political subdivision
383	383		of a state for the benefit of its employees, if the
384	384		plan has total assets in excess of Ten Million Dollars
385	385		($10,000,000.00) or its investment decis ions are made
386	386		by a duly designated public official or by a named
387	387
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438	438		fiduciary, as defined in the Employee Retirement
439	439		Income Security Act of 1974, that is a broker-dealer
440	440		registered under the Securities Exchang e Act of 1934,
441	441		an investment adviser registered or exempt from
442	442		registration under the Investment Advisers Act of
443	443		1940, an investment adviser registered under this act,
444	444		a depository institution, or an insurance company ,
445	445		h. a trust, if it has total assets in excess of Ten
446	446		Million Dollars ($10,000,000.00), its trustee is a
447	447		depository institution, and its participants are
448	448		exclusively plans of the types identified in
449	449		subparagraph f or g of this paragraph, regardless of
450	450		the size of their assets, except a trust th at includes
451	451		as participants self-directed individual retirement
452	452		accounts or similar self -directed plans,
453	453		i. an organization described in Section 501(c)(3) of the
454	454		Internal Revenue Code (26 U.S.C . Section 501(c)(3)),
455	455		corporation, Massachusetts trust or simil ar business
456	456		trust, limited liability company, or p artnership, not
457	457		formed for the specific purpose of acquiring the
458	458		securities offered, with total assets in excess of Ten
459	459		Million Dollars ($10,000,000.00),
460	460		j. a small business investment company licensed by t he
461	461		Small Business Administration under Section 301 (c) of
462	462
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513	513		the Small Business Investment Act of 1958 (15 U.S.C .
514	514		Section 681(c)) with total assets in excess of Ten
515	515		Million Dollars ($10,000,000.00),
516	516		k. a private business development company as defined in
517	517		Section 202(a)(22) of the Investment Advisers Act of
518	518		1940 (15 U.S.C. Section 80b-2(a)(22)) with total
519	519		assets in excess of Ten Million Dollars
520	520		($10,000,000.00),
521	521		l. a federal covered investment advise r acting for its
522	522		own account,
523	523		m. a “qualified institutional buy er” as defined in Rule
524	524		144A(a)(1), other than Rule 144A(a)(1)(i)(H), adopted
525	525		under the Securities Act of 1933 (17 C.F.R . 230.144A),
526	526		n. a “major U.S. institutional investor ” as defined in
527	527		Rule 15a-6(b)(4)(i) adopted under the Securities
528	528		Exchange Act of 1934 (17 C.F.R. 240.15a-6),
529	529		o. any other person, other than an individual, of
530	530		institutional character with total assets in excess of
531	531		Ten Million Dollars ( $10,000,000.00) not organized for
532	532		the specific purpose of evading this act, or
533	533		p. any other person specifi ed by rule adopted or order
534	534		issued under this act;
535	535		14. “Insurance company” means a company organized as an insurer
536	536		whose primary business is writing insurance or reinsuring risks
537	537
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588	588		underwritten by insurance companies and that are subject to
589	589		supervision by the insurance commissioner or a similar official or
590	590		agency of a state;
591	591		15. “Insured” means insured as to payment of all principal and
592	592		all interest;
593	593		16. “International banking institution ” means an international
594	594		financial institution of which the United St ates is a member and
595	595		whose securities are exempt f rom registration under the Securities
596	596		Act of 1933;
597	597		17. “Investment adviser” means a person that, for compensation,
598	598		engages in the business of advising others, either directly or
599	599		through publications or wri tings, as to the value of securities or
600	600		the advisability of investing in, purchasing, or selling securities
601	601		or that, for compensation and as a part of a regular business,
602	602		issues or promulgates analyses or reports concerning securities.
603	603		The term includes a financial planner or other person that, as an
604	604		integral component of other financially related services, provides
605	605		investment advice to others for compensation as part of a business
606	606		or that holds itself out as providing investment advice to others
607	607		for compensation. The term does not include:
608	608		a. an investment adviser representative ,
609	609		b. a lawyer, accountant, engineer, or teacher whose
610	610		performance of investment advice is solely incidental
611	611		to the practice of the person ’s profession,
612	612
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663	663		c. a broker-dealer or its agents whose performance of
664	664		investment advice is sol ely incidental to the conduct
665	665		of business as a broker -dealer and that does not
666	666		receive special compensation for the investment
667	667		advice,
668	668		d. a publisher of a bona fide newspaper, news magazine,
669	669		or business or financial publication of general and
670	670		regular circulation,
671	671		e. a depository institution, or
672	672		f. any other person excluded by rule adopted or order
673	673		issued under this act;
674	674		18. “Investment adviser r epresentative” means an individual
675	675		employed by or associated wi th an investment adviser or federal
676	676		covered investment adviser and who makes any recommendations or
677	677		otherwise gives investment advice regarding securities, manages
678	678		accounts or portfolios of cli ents, determines which recommendation
679	679		or advice regarding secur ities should be given, provides investment
680	680		advice or holds herself or himself out as providing investment
681	681		advice, receives compensation to solicit, offer, or negotiate for
682	682		the sale of or for se lling investment advice, or supervises
683	683		employees who perform an y of the foregoing. The term does not
684	684		include an individual who:
685	685		a. performs only clerical or ministerial acts ,
686	686
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728	728		17
729	729		18
730	730		19
731	731		20
732	732		21
733	733		22
734	734		23
735	735		24
736	736
737	737		b. is an agent whose performance of investment advice is
738	738		solely incidental to th e individual acting as an agent
739	739		and who does not receive specia l compensation for
740	740		investment advisory services , or
741	741		c. is excluded by rule adopted or order issued under this
742	742		act;
743	743		19. “Issuer” means a person that issues or proposes to issue a
744	744		security, subject to the following:
745	745		a. the issuer of a voting trust certifica te, collateral
746	746		trust certificate, certificate of d eposit for a
747	747		security, or share in an investment company without a
748	748		board of directors or individuals performing similar
749	749		functions is the person performing the acts and
750	750		assuming the duties of depositor or ma nager pursuant
751	751		to the trust or other agreement or instrument under
752	752		which the security is issued ,
753	753		b. the issuer of an equipment trust certificate or
754	754		similar security serving the same purpose is the
755	755		person by which the property or equipment is or will
756	756		be used or to which the property or equipment is or
757	757		will be leased or conditionally sold or that is
758	758		otherwise contractually responsible for assuring
759	759		payment of the certificate ,
760	760
761	761
762	762		Req. No. 3264 Page 11 1
763	763		2
764	764		3
765	765		4
766	766		5
767	767		6
768	768		7
769	769		8
770	770		9
771	771		10
772	772		11
773	773		12
774	774		13
775	775		14
776	776		15
777	777		16
778	778		17
779	779		18
780	780		19
781	781		20
782	782		21
783	783		22
784	784		23
785	785		24
786	786		1
787	787		2
788	788		3
789	789		4
790	790		5
791	791		6
792	792		7
793	793		8
794	794		9
795	795		10
796	796		11
797	797		12
798	798		13
799	799		14
800	800		15
801	801		16
802	802		17
803	803		18
804	804		19
805	805		20
806	806		21
807	807		22
808	808		23
809	809		24
810	810
811	811		c. the issuer of a fractional undivided interest in an
812	812		oil, gas, or other mineral lea se or in payments out of
813	813		production under a lease, right, or royalty is the
814	814		owner of an interest in the lease or in payments out
815	815		of production under a lease, right, or royalty,
816	816		whether whole or fractional, that creates fractional
817	817		interests for the purpose of sale;
818	818		20. “Nonissuer transaction ” or “nonissuer distribution” means a
819	819		transaction or distribution not directly or indirectly for the
820	820		benefit of the issuer ;
821	821		21. “Offer to purchase” includes an attempt or offer to obtain,
822	822		or solicitation of an offer to sell, a security or interest in a
823	823		security for value. The term does not include a tender offer that
824	824		is subject to Section 14(d) of the Securities Exchange Act of 1934
825	825		(15 U.S.C. 78n(d));
826	826		22. “Person” means an individual; corporation; business trust;
827	827		estate; trust; partnership; limited liability company; association;
828	828		joint venture; government, governmental subdivision, agency, or
829	829		instrumentality; public corporation; or any other legal or
830	830		commercial entity;
831	831		23. “Place of business” of a broker-dealer, an investment
832	832		adviser, or a federal covered investment adviser means:
833	833		a. an office at which the broker -dealer, investment
834	834		adviser, or federal covered investment adviser
835	835
836	836
837	837		Req. No. 3264 Page 12 1
838	838		2
839	839		3
840	840		4
841	841		5
842	842		6
843	843		7
844	844		8
845	845		9
846	846		10
847	847		11
848	848		12
849	849		13
850	850		14
851	851		15
852	852		16
853	853		17
854	854		18
855	855		19
856	856		20
857	857		21
858	858		22
859	859		23
860	860		24
861	861		1
862	862		2
863	863		3
864	864		4
865	865		5
866	866		6
867	867		7
868	868		8
869	869		9
870	870		10
871	871		11
872	872		12
873	873		13
874	874		14
875	875		15
876	876		16
877	877		17
878	878		18
879	879		19
880	880		20
881	881		21
882	882		22
883	883		23
884	884		24
885	885
886	886		regularly provides brokerage or investment advice or
887	887		solicits, meets with, or otherwise comm unicates with
888	888		customers or clients , or
889	889		b. any other location that is held out to the general
890	890		public as a location at which the broker -dealer,
891	891		investment adviser, or federal covered investment
892	892		adviser provides brokerage or investment advice or
893	893		solicits, meets with, or otherwise communicates with
894	894		customers or clients;
895	895		24. “Predecessor act” means the act repealed by Section 53 of
896	896		this act;
897	897		25. “Price amendment” means the amendment to a registrati on
898	898		statement filed under the Securities Act of 1933 or, if an a mendment
899	899		is not filed, the prospectus or prospectu s supplement filed under
900	900		the Securities Act of 1933 that includes a statement of the offering
901	901		price, underwriting and selling discounts or comm issions, amount of
902	902		proceeds, conversion rates, call prices, and other matters dependent
903	903		upon the offering price ;
904	904		26. “Principal place of business ” of a broker-dealer or an
905	905		investment adviser means the executive office of the broker -dealer
906	906		or investment adviser from which the officers, partners, or managers
907	907		of the broker-dealer or investment adviser direct, control, and
908	908		coordinate the activities of the broker -dealer or investment
909	909		adviser;
910	910
911	911
912	912		Req. No. 3264 Page 13 1
913	913		2
914	914		3
915	915		4
916	916		5
917	917		6
918	918		7
919	919		8
920	920		9
921	921		10
922	922		11
923	923		12
924	924		13
925	925		14
926	926		15
927	927		16
928	928		17
929	929		18
930	930		19
931	931		20
932	932		21
933	933		22
934	934		23
935	935		24
936	936		1
937	937		2
938	938		3
939	939		4
940	940		5
941	941		6
942	942		7
943	943		8
944	944		9
945	945		10
946	946		11
947	947		12
948	948		13
949	949		14
950	950		15
951	951		16
952	952		17
953	953		18
954	954		19
955	955		20
956	956		21
957	957		22
958	958		23
959	959		24
960	960
961	961		27. “Promoter” includes:
962	962		a. a person who, acting alone or in concert with one or
963	963		more persons, takes the entrepreneurial initiative in
964	964		founding or organizing the business or enterpr ise of
965	965		an issuer,
966	966		b. an officer or director owning securities of an issuer
967	967		or a person who owns, beneficially or of record, ten
968	968		percent (10%) or more of a class of securities of the
969	969		issuer if the officer, d irector, or person acquires
970	970		any of those securitie s in a transaction within three
971	971		(3) years before the filing by the issuer of a
972	972		registration statement under this act and the
973	973		transaction is not an arms-length transaction, or
974	974		c. a member of the immediate fa mily of a person within
975	975		subparagraph a or b of this paragraph if the family
976	976		member receives securities of the issuer from that
977	977		person in a transaction within three (3) years before
978	978		the filing by the issuer of a registration statement
979	979		under this act and the transaction is not an arms-
980	980		length transaction.
981	981		For purposes of this subsection, “immediate family” means a
982	982		spouse of a person within subparagraph a or b of this paragraph, an
983	983		emancipated child residing in such person ’s household, or an
984	984		individual claimed as a dependent by such person for tax purposes ;
985	985
986	986
987	987		Req. No. 3264 Page 14 1
988	988		2
989	989		3
990	990		4
991	991		5
992	992		6
993	993		7
994	994		8
995	995		9
996	996		10
997	997		11
998	998		12
999	999		13
1000	1000		14
1001	1001		15
1002	1002		16
1003	1003		17
1004	1004		18
1005	1005		19
1006	1006		20
1007	1007		21
1008	1008		22
1009	1009		23
1010	1010		24
1011	1011		1
1012	1012		2
1013	1013		3
1014	1014		4
1015	1015		5
1016	1016		6
1017	1017		7
1018	1018		8
1019	1019		9
1020	1020		10
1021	1021		11
1022	1022		12
1023	1023		13
1024	1024		14
1025	1025		15
1026	1026		16
1027	1027		17
1028	1028		18
1029	1029		19
1030	1030		20
1031	1031		21
1032	1032		22
1033	1033		23
1034	1034		24
1035	1035
1036	1036		28. “Record” except in the phrases “of record,” “official
1037	1037		record,” and “public record,” means information that is inscribed on
1038	1038		a tangible medium or that is stored in an electronic or other medium
1039	1039		and is retrievable in perceivable form;
1040	1040		29. “Registration statement” means the documentation provided
1041	1041		to the Securities and Exchange Commission or the Department in
1042	1042		connection with the registration of se curities under the Securities
1043	1043		Act of 1933 or this title and inc ludes any amendment thereto and any
1044	1044		report, document, exhibit or memorandum filed as part of such
1045	1045		statement or incorporated therein by reference ;
1046	1046		30. “Sale” includes every contract of sale, co ntract to sell,
1047	1047		or disposition of, a security or interest in a security for value,
1048	1048		and “offer to sell” includes every attempt or offer to dispose of,
1049	1049		or solicitation of an offer to purchase, a security or interest in a
1050	1050		security for value. Both terms inclu de:
1051	1051		a. a security given or delivered with, or as a bonus on
1052	1052		account of, a purchase of securities or any other
1053	1053		thing constituting part of the subject of the purchase
1054	1054		and having been offered and sold for value ,
1055	1055		b. a gift of assessable stock involving an offe r and
1056	1056		sale, and
1057	1057		c. a sale or offer of a warrant or right to pur chase or
1058	1058		subscribe to another security of the same or another
1059	1059		issuer and a sale or offer of a security that gives
1060	1060
1061	1061
1062	1062		Req. No. 3264 Page 15 1
1063	1063		2
1064	1064		3
1065	1065		4
1066	1066		5
1067	1067		6
1068	1068		7
1069	1069		8
1070	1070		9
1071	1071		10
1072	1072		11
1073	1073		12
1074	1074		13
1075	1075		14
1076	1076		15
1077	1077		16
1078	1078		17
1079	1079		18
1080	1080		19
1081	1081		20
1082	1082		21
1083	1083		22
1084	1084		23
1085	1085		24
1086	1086		1
1087	1087		2
1088	1088		3
1089	1089		4
1090	1090		5
1091	1091		6
1092	1092		7
1093	1093		8
1094	1094		9
1095	1095		10
1096	1096		11
1097	1097		12
1098	1098		13
1099	1099		14
1100	1100		15
1101	1101		16
1102	1102		17
1103	1103		18
1104	1104		19
1105	1105		20
1106	1106		21
1107	1107		22
1108	1108		23
1109	1109		24
1110	1110
1111	1111		the holder a present or future right or privilege to
1112	1112		convert the security into another security of the same
1113	1113		or another issuer, including an of fer of the other
1114	1114		security;
1115	1115		31. “Securities and Exchange Commission” means the United
1116	1116		States Securities and Exchange Commission ;
1117	1117		32. “Security” means a note; stock; treasury stock; security
1118	1118		future; bond; debenture; evidence of indebtedness; certificate of
1119	1119		interest or participation in a profit -sharing agreement; collateral
1120	1120		trust certificate; preorganization certificate or subscription;
1121	1121		transferable share; investment contract; voting trust certif icate;
1122	1122		certificate of deposit for a security; fractional undivi ded interest
1123	1123		in oil, gas, or other mineral rights; cryptocurrency; non-fungible
1124	1124		tokens; put, call, straddle, option, or privilege on a security,
1125	1125		certificate of deposit, or group or index of sec urities, including
1126	1126		an interest therein or based on the value th ereof; put, call,
1127	1127		straddle, option, or privilege e ntered into on a national securities
1128	1128		exchange relating to foreign currency; or, in general, an interest
1129	1129		or instrument commonly known as a “security”; or a certificate of
1130	1130		interest or participation in, tempor ary or interim certificate for,
1131	1131		receipt for, guarantee of, or warrant or right to subscribe to or
1132	1132		purchase, any of the foregoing. The term:
1133	1133		a. includes both a certificated and an uncertificate d
1134	1134		security,
1135	1135
1136	1136
1137	1137		Req. No. 3264 Page 16 1
1138	1138		2
1139	1139		3
1140	1140		4
1141	1141		5
1142	1142		6
1143	1143		7
1144	1144		8
1145	1145		9
1146	1146		10
1147	1147		11
1148	1148		12
1149	1149		13
1150	1150		14
1151	1151		15
1152	1152		16
1153	1153		17
1154	1154		18
1155	1155		19
1156	1156		20
1157	1157		21
1158	1158		22
1159	1159		23
1160	1160		24
1161	1161		1
1162	1162		2
1163	1163		3
1164	1164		4
1165	1165		5
1166	1166		6
1167	1167		7
1168	1168		8
1169	1169		9
1170	1170		10
1171	1171		11
1172	1172		12
1173	1173		13
1174	1174		14
1175	1175		15
1176	1176		16
1177	1177		17
1178	1178		18
1179	1179		19
1180	1180		20
1181	1181		21
1182	1182		22
1183	1183		23
1184	1184		24
1185	1185
1186	1186		b. does not include an insurance or endowment polic y or
1187	1187		annuity contract under which an insurance com pany
1188	1188		promises to pay a sum of money either in a lump sum or
1189	1189		periodically for life or other specified period ,
1190	1190		c. does not include an interest in a contributory or
1191	1191		noncontributory pension or welfare plan subj ect to the
1192	1192		Employee Retirement Income Security Act of 1974,
1193	1193		d. includes as an “investment contract” an investment in
1194	1194		a common enterprise with the expectation of profits to
1195	1195		be derived primarily from the efforts of a person
1196	1196		other than the investor and a “common enterprise”
1197	1197		means an enterprise in which the f ortunes of the
1198	1198		investor are interwoven with those of either the
1199	1199		person offering the investment, a third party, or
1200	1200		other investors,
1201	1201		e. includes as an “investment contract, ” among other
1202	1202		contracts, an interest in a limited partnership and a
1203	1203		third party managed limited liability company and an
1204	1204		investment in a viatical or life settlement or similar
1205	1205		contract or agreement ,
1206	1206		f. includes an investment of m oney or money’s worth
1207	1207		including goods furnished or services per formed in the
1208	1208		risk capital of a venture with the e xpectation of some
1209	1209		benefit to the investor where the investor has no
1210	1210
1211	1211
1212	1212		Req. No. 3264 Page 17 1
1213	1213		2
1214	1214		3
1215	1215		4
1216	1216		5
1217	1217		6
1218	1218		7
1219	1219		8
1220	1220		9
1221	1221		10
1222	1222		11
1223	1223		12
1224	1224		13
1225	1225		14
1226	1226		15
1227	1227		16
1228	1228		17
1229	1229		18
1230	1230		19
1231	1231		20
1232	1232		21
1233	1233		22
1234	1234		23
1235	1235		24
1236	1236		1
1237	1237		2
1238	1238		3
1239	1239		4
1240	1240		5
1241	1241		6
1242	1242		7
1243	1243		8
1244	1244		9
1245	1245		10
1246	1246		11
1247	1247		12
1248	1248		13
1249	1249		14
1250	1250		15
1251	1251		16
1252	1252		17
1253	1253		18
1254	1254		19
1255	1255		20
1256	1256		21
1257	1257		22
1258	1258		23
1259	1259		24
1260	1260
1261	1261		direct control over the investment or policy decision
1262	1262		of the venture, and
1263	1263		g. does not include an interest in an oil, gas or mineral
1264	1264		lease as part of a transaction between parties, each
1265	1265		of whom is engaged in the business of exploring for or
1266	1266		producing oil and gas or other valuable minerals as an
1267	1267		ongoing business or the execution o f oil and gas
1268	1268		leases by land, mineral and royalty owners in fav or of
1269	1269		a party or parties engaged in the business o f
1270	1270		exploring for or producing oil and gas or other
1271	1271		valuable minerals;
1272	1272		33. “Self-regulatory organization ” means a national securities
1273	1273		exchange registered under the Securities Exchange Act of 1934, a
1274	1274		national securities association of broker -dealers registered under
1275	1275		the Securities Exchange Act of 1934, a clearing agency registered
1276	1276		under the Securities Exchange Act of 1934, or the Municipal
1277	1277		Securities Rulemaking Board established under the Securities
1278	1278		Exchange Act of 1934;
1279	1279		34. “Sign” means, with present intent to authenticate or adopt
1280	1280		a record:
1281	1281		a. to execute or adopt a tangible symbol , or
1282	1282		b. to attach or logically associate with the record an
1283	1283		electronic symbol, sound, or process ;
1284	1284
1285	1285
1286	1286		Req. No. 3264 Page 18 1
1287	1287		2
1288	1288		3
1289	1289		4
1290	1290		5
1291	1291		6
1292	1292		7
1293	1293		8
1294	1294		9
1295	1295		10
1296	1296		11
1297	1297		12
1298	1298		13
1299	1299		14
1300	1300		15
1301	1301		16
1302	1302		17
1303	1303		18
1304	1304		19
1305	1305		20
1306	1306		21
1307	1307		22
1308	1308		23
1309	1309		24
1310	1310		1
1311	1311		2
1312	1312		3
1313	1313		4
1314	1314		5
1315	1315		6
1316	1316		7
1317	1317		8
1318	1318		9
1319	1319		10
1320	1320		11
1321	1321		12
1322	1322		13
1323	1323		14
1324	1324		15
1325	1325		16
1326	1326		17
1327	1327		18
1328	1328		19
1329	1329		20
1330	1330		21
1331	1331		22
1332	1332		23
1333	1333		24
1334	1334
1335	1335		35. “State” means a state of the United States, the District of
1336	1336		Columbia, Puerto Rico, the United States Virgin Islands, or any
1337	1337		territory or insular possession subject to the jurisdiction of the
1338	1338		United States; and
1339	1339		36. “Underwriter” means any person who has purchased from an
1340	1340		issuer or from any other person with a view to, or offers or sells
1341	1341		for an issuer or for any other person in connection with, the
1342	1342		distribution of any security, or participates or has a direct or
1343	1343		indirect participation in any such undertaking, or participates or
1344	1344		has a participation in the direct or indirect underwriti ng of any
1345	1345		such undertaking. “Underwriter” does not include a person whose
1346	1346		interest is limited to a commission from an underwriter or broker -
1347	1347		dealer not in excess of the usual and customary distributor ’s or
1348	1348		seller’s commission.
1349	1349		SECTION 2. This act shall become effective November 1, 2022.
1350	1350
1351	1351		58-2-3264 TEK 1/19/2022 3:22:06 PM