Fifty-second Legislature                                   Financial Institutions

Second Regular Session                                                  S.B. 1005




(Reference to printed bill)


Page 4, between lines 5 and 6, insert:

"6.  "Family member":

(a)  means a lineal descendant, including a child related by adoption or blood and an individual who was a minor when another family member became the individual's legal guardian, of a common ancestor who is living or deceased if the common ancestor is not more than ten generations removed from the youngest generation of family members.

(b)  Includes:

(i)  A spouse of the lineal descendant described in subdivision (a) of this paragraph.

(ii)  A stepchild and the stepchild's spouse.

(iii)  A foster child and the foster child's spouse.

7.  "Former family member" means a spouse or stepchild who was a family member but who is no longer a family member."

Renumber to conform

Line 11, after the period insert "For the purposes of calculating the number of purchasers under this subdivision, a purchaser that is an entity shall be counted as the number of individuals who are directly or indirectly beneficial owners in the entity, except that all individuals who are family members or former family members shall be counted as a single purchaser."

Strike lines 12 through 18, insert:

"(b)  When the securities are sold the private fund adviser reasonably believes that each purchaser of securities from the limited retail buyer fund that is not a qualified purchaser, as defined in section 2(a)(51) of the investment company act of 1940, is a qualified client as defined in 17 code of federal regulations section 275.205-3."

Amend title to conform






8:58 AM