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A BILL TO BE ENTITLED
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AN ACT
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relating to crowdfunding portal regulation for the purpose of small |
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business 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. |
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(b) The Board shall adopt rules specific to authorized small |
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business development entities. |
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(c) In this subsection, "authorized small business |
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development 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 municipality corporation; or |
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(5) the Texas Veterans Commission. |
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(d) The rules that are specific to authorized small business |
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development entities as defined by Subdivision (1) must: |
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(1) minimize any delay between raising and accessing |
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capital funds through crowdfunding; |
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(2) allow authorized small business development |
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entities to list offers in their web portals in which they are |
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financially interested; |
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(3) allow authorized small business development |
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entities and their portals to generally promote offers without |
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offering individualized investment advice; |
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(4) allow investors who purchase securities through |
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web portals operated by an authorized small business development |
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entity to have restrictions at least double the amount placed on |
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investors who purchase securities through web portals operated by a |
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non-authorized small business development entity; |
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(5) 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; and |
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(6) limit the offerings of an authorized small |
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business development entity's web portal to the authorized small |
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business development entity's service area. |
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(e) The Board is allowed to create other requirements, as |
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they deem necessary by adopting rules. |
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SECTION 2. This Act takes effect September 1, 2015. |