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A BILL TO BE ENTITLED
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AN ACT
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relating to crowdfunding portal regulations for small business |
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development. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Securities Act (Article 581-1 et seq., |
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Vernon's Texas Civil Statutes) is amended by adding Section 44 to |
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read as follows: |
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Sec. 44. CROWDFUNDING. (a) The Board shall adopt rules to |
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regulate and facilitate online intrastate crowdfunding applicable |
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to authorized small business development entities. The Board may |
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create other requirements necessary to carry out this section. |
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(b) The rules for authorized small business development |
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entities must: |
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(1) allow authorized small business development |
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entities to list on their web portals offerings of securities by |
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issuers in which they are financially interested; |
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(2) allow authorized small business development |
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entities and their portals to list offerings of securities without |
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offering investment advice; |
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(3) allow authorized small business development |
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entities to subcontract the operations of a crowdfunding web portal |
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to a third party as permitted by Board rule; and |
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(4) limit the offerings of securities on an authorized |
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small business development entity's web portal to securities of |
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issuers located within the service area of the authorized small |
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business development entity. |
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(c) In this section, "authorized small business development |
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entity" means: |
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(1) a Type A corporation authorized under Chapter 504, |
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Local Government Code; |
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(2) a Type B corporation authorized under Chapter 505, |
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Local Government Code; |
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(3) a nonprofit organization authorized by an agency |
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or authority of the federal government to distribute housing and |
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community development block grants; |
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(4) a municipal corporation; |
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(5) the Texas Veterans Commission; or |
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(6) a nonprofit community development financial |
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institution certified by the Community Development Financial |
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Institutions Fund. |
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SECTION 2. This Act takes effect September 1, 2015. |