SB483,38,223 4. The issuer of the security has total assets of at least $2,000,000 based on an
24audited balance sheet as of a date within 18 months before the date of the transaction
25or, in the case of a reorganization or merger when the parties to the reorganization

1or merger each had such an audited balance sheet, a pro forma balance sheet for the
2combined organization.
SB483,38,6 3(3) A nonissuer transaction by or through a broker-dealer registered or exempt
4from registration under this chapter in a security of a foreign issuer that is a margin
5security defined in regulations or rules adopted by the Board of Governors of the
6Federal Reserve System.
SB483,38,11 7(4) A nonissuer transaction by or through a broker-dealer registered or exempt
8from registration under this chapter in an outstanding security if the guarantor of
9the security files reports with the Securities and Exchange Commission under the
10reporting requirements of section 13 or 15 (d) of the Securities Exchange Act of 1934
11(15 USC 78m or 78o (d)).
SB483,38,14 12(5) A nonissuer transaction by or through a broker-dealer registered or exempt
13from registration under this chapter in a security to which any of the following
14applies:
SB483,38,1615 (a) The security is rated at the time of the transaction by a nationally
16recognized statistical rating organization in one of its 4 highest rating categories.
SB483,38,1817 (b) The security has a fixed maturity or a fixed interest or dividend, if all of the
18following apply:
SB483,38,2119 1. A default has not occurred during the current fiscal year or within the 3
20previous fiscal years, or during the existence of the issuer and any predecessor if less
21than 3 fiscal years, in the payment of principal, interest, or dividends on the security.
SB483,39,222 2. The issuer is engaged in business, is not in the organizational stage or in
23bankruptcy or receivership, and is not and has not been within the previous 12
24months a blank check, blind pool, or shell company that has no specific business plan

1or purpose or has indicated that its primary business plan is to engage in a merger
2or combination of the business with, or an acquisition of, an unidentified person.
SB483,39,7 3(6) A nonissuer transaction by or through a broker-dealer registered or exempt
4from registration under this chapter effecting an unsolicited order or offer to
5purchase, but with respect to a nonissuer transaction involving a security that is not
6a federal covered security the administrator may require by rule that the records of
7the broker-dealer confirm that the order or offer to purchase was unsolicited.
SB483,39,9 8(7) A nonissuer transaction executed by a bona fide pledgee without the
9purpose of evading this chapter.
SB483,39,12 10(8) A nonissuer transaction by a federal covered investment adviser with
11investments under management in excess of $100,000,000 acting in the exercise of
12discretionary authority in a signed record for the account of others.
SB483,39,18 13(9) A transaction in a security, whether or not the security or transaction is
14otherwise exempt, in exchange for one or more bona fide outstanding securities,
15claims, or property interests, or partly in such exchange and partly for cash, if the
16terms and conditions of the issuance and exchange or the delivery and exchange and
17the fairness of the terms and conditions have been approved by the administrator
18after a hearing.
SB483,39,20 19(10) A transaction between the issuer or other person on whose behalf the
20offering is made and an underwriter, or among underwriters.
SB483,39,22 21(11) A transaction in a note, bond, debenture, or other evidence of indebtedness
22secured by a mortgage or other security agreement if all of the following apply:
SB483,39,2423 (a) The note, bond, debenture, or other evidence of indebtedness is offered and
24sold with the mortgage or other security agreement as a unit.
SB483,40,2
1(b) A general solicitation or general advertisement of the transaction is not
2made.
SB483,40,53 (c) A commission or other remuneration is not paid or given, directly or
4indirectly, to a person not registered under this chapter as a broker-dealer or as an
5agent.
SB483,40,7 6(12) A transaction by an executor, administrator of an estate, sheriff, marshal,
7receiver, trustee in bankruptcy, guardian, or conservator.
SB483,40,8 8(13) A sale or offer to sell to any of the following:
SB483,40,99 (a) An institutional investor.
SB483,40,1710 (am) An accredited investor, as defined in Rule 501 (a) adopted under the
11Securities Act of 1933 (17 CFR 230.501 (a)), provided that prior to the sale in this
12state to an accredited investor described in Rule 501 (a) (5) or (6) adopted under the
13Securities Act of 1933, the seller files a consent to service of process with the
14administrator in the form required under s. 551.611. Failure to file the consent as
15required is a cause for administrative action by the administrator under s. 551.604
16but does not result in the loss of this exemption. This consent is not required to be
17filed if any of the following apply:
SB483,40,1918 1. The issuer of the securities to be sold has its principal place of business or
19a majority of its full-time employees located in this state.
SB483,40,2120 2. The issuer or seller of the securities files or has previously filed a consent to
21service of process with the administrator.
SB483,40,2322 3. The seller is a broker-dealer or agent of the issuer registered under this
23chapter.
SB483,40,2424 (b) A federal covered investment adviser.
SB483,41,2
1(c) Any other person exempted by rule adopted or order issued under this
2chapter.
SB483,41,7 3(14) (a) Subject to par. (b), any transaction pursuant to an offer directed by the
4offeror to not more than 25 persons in this state excluding those persons designated
5in sub. (13) but including persons exempt under sub. (24), during any period of 12
6consecutive months whether or not the offeror or any of the offerees is then present
7in this state if all of the following apply:
SB483,41,98 1. No general solicitation or general advertising is made in connection with the
9offer to sell or sale of the securities unless it has been permitted by the administrator.
SB483,41,1310 2. No commission or other remuneration is paid or given, directly or indirectly,
11to a person other than a broker-dealer registered under this chapter or an agent
12registered under this chapter for soliciting any person in this state other than those
13persons designated in sub. (13).
SB483,41,1514 3. The offeror reasonably believes that all the purchasers in this state, other
15than those designated in sub. (13), are purchasing for investment.
SB483,41,1916 (b) The administrator may by rule or order, as to any security or transaction
17or any type of security or transaction, withdraw or further condition this exemption,
18or increase or decrease the number of offerees permitted, or waive the conditions in
19par. (a), and may require reports of sales under this exemption.
SB483,42,6 20(15) A transaction under an offer to existing security holders of the issuer,
21including persons that at the date of the transaction are holders of convertible
22securities, options, or warrants, if a commission or other remuneration, other than
23a standby commission, is not paid or given, directly or indirectly, for soliciting a
24security holder in this state and if, prior to any offer or sale of any security that is
25not a federal covered security, the issuer files a notice specifying the terms of the offer,

1all other information that the administrator by rule requires, and any additional
2information reasonably related to the offering required to be filed by the
3administrator within 10 days after the filing date of the notice, and the administrator
4does not by order disallow the exemption within 10 days after the date of filing the
5notice or, if additional information is required, within 10 days after the date of filing
6that information.
SB483,42,8 7(16) An offer to sell, but not a sale, of a security not exempt from registration
8under the Securities Act of 1933 if all of the following apply:
SB483,42,119 (a) A registration or offering statement or similar record as required under the
10Securities Act of 1933 has been filed, but is not effective, or the offer is made in
11compliance with Rule 165 adopted under the Securities Act of 1933 (17 CFR 230.165).
SB483,42,1512 (b) A stop order of which the offeror is aware has not been issued against the
13offeror by the administrator or the Securities and Exchange Commission, and an
14audit, inspection, or proceeding that is public and that may culminate in a stop order
15is not known by the offeror to be pending.
SB483,42,17 16(17) An offer to sell, but not a sale, of a security exempt from registration under
17the Securities Act of 1933 if all of the following apply:
SB483,42,1918 (a) A registration statement has been filed under this chapter, but is not
19effective.
SB483,42,2120 (b) A solicitation of interest is provided in a record to offerees in compliance
21with a rule adopted by the administrator under this chapter.
SB483,42,2422 (c) A stop order of which the offeror is aware has not been issued by the
23administrator under this chapter and an audit, inspection, or proceeding that may
24culminate in a stop order is not known by the offeror to be pending.
SB483,43,4
1(18) A transaction involving the distribution of the securities of an issuer to the
2security holders of another person in connection with a merger, consolidation,
3exchange of securities, sale of assets, or other reorganization to which the issuer, or
4its parent or subsidiary and the other person, or its parent or subsidiary, are parties.
SB483,43,5 5(19) A rescission offer, sale, or purchase under s. 551.511.
SB483,43,9 6(20) An offer or sale of a security to a person not a resident of this state and not
7present in this state if the offer or sale does not constitute a violation of the laws of
8the state or foreign jurisdiction in which the offeree or purchaser is present and is
9not part of an unlawful plan or scheme to evade this chapter.
SB483,43,16 10(21) Employees' stock purchase, savings, option, profit-sharing, pension, or
11similar employees' benefit plan, including any securities, plan interests, and
12guarantees issued under a compensatory benefit plan or compensation contract,
13contained in a record, established by the issuer, its parents, its majority-owned
14subsidiaries, or the majority-owned subsidiaries of the issuer's parent, for the
15participation of their employees including offers or sales of such securities to all of
16the following:
SB483,43,1817 (a) Directors; general partners; trustees, if the issuer is a business trust;
18officers; consultants; and advisors.
SB483,43,2019 (b) Family members who acquire such securities from those persons through
20gifts or domestic relations orders.
SB483,43,2321 (c) Former employees, directors, general partners, trustees, officers,
22consultants, and advisors if those individuals were employed by or providing services
23to the issuer when the securities were offered.
SB483,44,3
1(d) Insurance agents who are exclusive insurance agents of the issuer, or the
2issuer's subsidiaries or parents, or who derive more than 50 percent of their annual
3income from those organizations.
SB483,44,4 4(22) A transaction involving any of the following:
SB483,44,115 (a) A stock dividend or equivalent equity distribution, whether the corporation
6or other business organization distributing the dividend or equivalent equity
7distribution is the issuer or not, if nothing of value is given by stockholders or other
8equity holders for the dividend or equivalent equity distribution other than the
9surrender of a right to a cash or property dividend if each stockholder or other equity
10holder may elect to take the dividend or equivalent equity distribution in cash,
11property, or stock.
SB483,44,1412 (b) An act incident to a judicially approved reorganization in which a security
13is issued in exchange for one or more outstanding securities, claims, or property
14interests, or partly in such exchange and partly for cash.
SB483,44,1615 (c) The solicitation of tenders of securities by an offeror in a tender offer in
16compliance with Rule 162 adopted under the Securities Act of 1933 (17 CFR 230.162).
SB483,45,8 17(23) A nonissuer transaction in an outstanding security by or through a
18broker-dealer registered or exempt from registration under this chapter, if the issuer
19is a reporting issuer in a foreign jurisdiction designated by this subsection or by rule
20adopted or order issued under this chapter; has been subject to continuous reporting
21requirements in the foreign jurisdiction for not less than 180 days before the
22transaction; and the security is listed on the foreign jurisdiction's securities
23exchange that has been designated by this subsection or by rule adopted or order
24issued under this chapter, or is a security of the same issuer that is of senior or
25substantially equal rank to the listed security or is a warrant or right to purchase

1or subscribe to any of the foregoing. For purposes of this subsection, Canada,
2together with its provinces and territories, is a designated foreign jurisdiction and
3The Toronto Stock Exchange, Inc. and the TSX Venture Exchange, Inc. are
4designated securities exchanges. After an administrative hearing in compliance
5with ch. 227, the administrator, by rule adopted or order issued under this chapter,
6may revoke the designation of a securities exchange under this subsection, if the
7administrator finds that revocation is necessary or appropriate in the public interest
8and for the protection of investors.
SB483,45,15 9(24) Any offer or sale of its securities by an issuer, having its principal office
10in this state, if the aggregate number of persons holding directly or indirectly all of
11the issuer's securities, after the securities to be issued are sold, does not exceed 25,
12exclusive of persons under sub. (13), if no commission or other remuneration is paid
13or given directly or indirectly for soliciting any person in this state, except to
14broker-dealers and agents licensed in this state, and if no advertising is published
15unless it has been permitted by the division of securities.
SB483,45,21 16(25) Any offer or sale of a preorganization subscription, if no commission or
17other remuneration is paid or given directly or indirectly for soliciting any subscriber
18in this state and no advertising is published or circulated unless it has been
19permitted by the division of securities, and if the subscription is not binding and no
20payment is made by any subscriber until the securities subscribed for may legally be
21sold.
SB483,46,2 22551.203 Additional exemptions and waivers. A rule adopted or order
23issued under this chapter may exempt a security, transaction, or offer; a rule under
24this chapter may exempt a class of securities, transactions, or offers from any or all
25of the requirements of ss. 551.301 to 551.306 and 551.504; and an order under this

1chapter may waive, in whole or in part, any or all of the conditions for an exemption
2or offer under ss. 551.201 and 551.202.
SB483,46,11 3551.204 Denial, suspension, revocation, condition, or limitation of
4exemptions; burden of proof; additional information.
(1) Enforcement
5related powers.
Except with respect to a federal covered security or a transaction
6involving a federal covered security, an order under this chapter may deny, suspend
7application of, condition, limit, or revoke an exemption created under s. 551.201 or
8551.202 or an exemption or waiver created under s. 551.203 with respect to a specific
9security, transaction, or offer, except to the extent limited by the National Securities
10Markets Improvement Act of 1996. An order under this section may be issued only
11pursuant to the procedures in s. 551.306 (4) or s. 551.604 and only prospectively.
SB483,46,16 12(2) Knowledge of order required. A person does not violate s. 551.301,
13551.303 to 551.306, 551.504, or 551.511 by an offer to sell, offer to purchase, sale, or
14purchase effected after the entry of an order issued under this section if the person
15did not know, and in the exercise of reasonable care could not have known, of the
16order.
SB483,46,24 17(3) Additional information required. With respect to an exemption under s.
18551.201 or 551.202 that is perfected if a notice or other information is filed with the
19division of securities and the division does not disallow the exemption within a
20specified period after the filing, the division may, within 10 days after the filing date
21of the notice or other information, require that additional information reasonably
22related to the offering be filed. If the division requires additional information, the
23date by which the division may disallow the exemption is 10 days after the date of
24filing that information.
SB483,47,3
1subchapter iii
2 REGISTRATION OF SECURITIES AND
3 NOTICE FILING OF FEDERAL COVERED SECURITIES
SB483,47,5 4551.301 Securities registration requirement. It is unlawful for a person
5to offer or sell a security in this state unless any of the following apply:
SB483,47,6 6(1) The security is a federal covered security.
SB483,47,8 7(2) The security, transaction, or offer is exempted from registration under this
8chapter.
SB483,47,9 9(3) The security is registered under this chapter.
SB483,47,14 10551.302 Notice filing. (1) Required filing of records. With respect to a
11federal covered security, as defined in section 18 (b) (2) of the Securities Act of 1933
12(15 USC 77r (b) (2), that is not otherwise exempt under ss. 551.201 to 551.203, a rule
13adopted by the administrator or an order issued under this chapter may require the
14filing of any or all of the following records:
SB483,47,2415 (a) Prior to offer. Not later than the initial offer of the federal covered security
16in this state, a copy of each document that is part of its registration statement filed
17with the Securities and Exchange Commission under the Securities Act of 1933,
18which may, at the option of the issuer, be accompanied by a form containing the
19information specified by the administrator by rule. If a filing is required under this
20paragraph, the filing shall be accompanied by a consent to service of process signed
21by the issuer and a notice filing fee under s. 551.614. Any notice filing required under
22this paragraph is effective upon receipt by the administrator of the documents and
23fees required under this paragraph, or upon the effectiveness of the registration
24statement under the Securities Act of 1933, whichever is later.
SB483,48,11
1(b) After offer. After the initial offer of the federal covered security in this state,
2a copy of each document that is part of an amendment to its registration statement
3filed with the Securities and Exchange Commission under the Securities Act of 1933,
4concurrent with the federal filing, which may, at the option of the issuer, be
5accompanied by a form containing the information specified by the administrator by
6rule. If a filing is required under this paragraph and the amendment relates either
7to a name change of the issuer or a change in the designation of the federal covered
8security, the filing shall be accompanied by a fee in the amount prescribed by the rule
9or order requiring the filing. Unless the issuer requests a later effective date, an
10amendment filing required under this paragraph is effective upon receipt by the
11administrator of the documents and fees required under this paragraph.
SB483,48,1512 (c) Unit trust or investment company. For a unit investment trust or closed-end
13investment company to extend its offering beyond a one-year period, a notice of
14extension, together with any filing fee prescribed by rule or order, at the time
15prescribed by rule or order.
SB483,48,24 16(3) Notice filings for certain federal covered securities. With respect to a
17security that is a federal covered security under section 18 (b) (4) (D) of the Securities
18Act of 1933 (15 USC 77r (b) (4) (D)), a rule under this chapter may require a notice
19filing by or on behalf of an issuer to include a copy of Form D, including the Appendix,
20as promulgated by the Securities and Exchange Commission, and a consent to
21service of process complying with s. 551.611 signed by the issuer not later than 15
22days after the first sale of the federal covered security in this state and the payment
23of a fee as provided in s. 551.614 or by rule of the administrator; and the payment
24of a fee as provided in s. 551.614 or by rule of the administrator for any late filing.
SB483,49,6
1(4) Stop orders. Except with respect to a federal covered security under section
218 (b) (1) of the Securities Act of 1933 (15 USC 77r (b) (1)), if the administrator finds
3that there is a failure to comply with a notice or fee requirement of this section, the
4administrator may issue a stop order suspending the offer and sale of a federal
5covered security in this state. If the deficiency is corrected, the stop order is void as
6of the time of its issuance and no penalty may be imposed by the administrator.
SB483,49,9 7(5) Waiver. The administrator may, by rule or order, waive or further condition
8any waiver of a requirement under this section or under any rule promulgated by the
9administrator, or order issued, under this section.
SB483,49,13 10551.303 Securities registration by coordination. (1) Registration
11permitted.
A security for which a registration statement has been filed under the
12Securities Act of 1933 in connection with the same offering may be registered by
13coordination under this section.
SB483,49,17 14(2) Required records. A registration statement and accompanying records
15under this section must contain or be accompanied by all of the following records in
16addition to the information specified in s. 551.305 and a consent to service of process
17complying with s. 551.611:
SB483,49,1818 (a) A copy of the latest form of prospectus filed under the Securities Act of 1933.
SB483,49,2319 (b) A copy of the articles of incorporation and bylaws or their substantial
20equivalents currently in effect; a copy of any agreement with or among underwriters;
21a copy of any indenture or other instrument governing the issuance of the security
22to be registered; and a specimen, copy, or description of the security that is required
23by rule adopted or order issued under this chapter.
SB483,49,2524 (c) Copies of any other information or any other records filed by the issuer under
25the Securities Act of 1933 requested by the administrator.
SB483,50,3
1(d) An undertaking to forward each amendment to the federal prospectus,
2other than an amendment that delays the effective date of the registration
3statement, promptly after it is filed with the Securities and Exchange Commission.
SB483,50,6 4(3) Conditions for effectiveness of registration statement. A registration
5statement under this section becomes effective simultaneously with or subsequent
6to the federal registration statement when all the following conditions are satisfied:
SB483,50,97 (a) A stop order under sub. (4) or s. 551.306 or issued by the Securities and
8Exchange Commission is not in effect and a proceeding is not pending against the
9issuer under s. 551.306.
SB483,50,1110 (b) The registration statement has been on file for at least 20 days or a shorter
11period provided by rule adopted or order issued under this chapter.
SB483,50,22 12(4) Notice of federal registration statement effectiveness. The registrant
13shall promptly notify the administrator in a record of the date when the federal
14registration statement becomes effective and the content of any price amendment
15and shall promptly file a record containing the price amendment. If the notice is not
16timely received, the administrator may issue a stop order, without prior notice or
17hearing, retroactively denying effectiveness to the registration statement or
18suspending its effectiveness until compliance with this section. The administrator
19shall promptly notify the registrant of an order by telecopy, telephone, or electronic
20means and promptly confirm this notice by a record. If the registrant subsequently
21complies with the notice requirements of this section, the stop order is void as of the
22date of its issuance.
SB483,51,8 23(5) Effectiveness of registration statement. If the federal registration
24statement becomes effective before each of the conditions in this section is satisfied
25or is waived by the administrator, the registration statement is automatically

1effective under this chapter when all the conditions are satisfied or waived. If the
2registrant notifies the administrator of the date when the federal registration
3statement is expected to become effective, the administrator shall promptly notify
4the registrant by telecopy, telephone, or electronic means and promptly confirm this
5notice by a record, indicating whether all the conditions are satisfied or waived and
6whether the administrator intends the institution of a proceeding under s. 551.306.
7The notice by the administrator does not preclude the institution of such a
8proceeding.
SB483,51,10 9551.304 Securities registration by qualification. (1) Registration
10permitted.
A security may be registered by qualification under this section.
SB483,51,14 11(2) Required records. A registration statement under this section must
12contain the information or records specified in s. 551.305, a consent to service of
13process complying with s. 551.611, and, if required by rule adopted under this
14chapter, any, or any combination of, the following information or records:
SB483,51,1915 (a) With respect to the issuer and any significant subsidiary, its name, address,
16and form of organization; the state or foreign jurisdiction and date of its organization;
17the general character and location of its business; a description of its physical
18properties and equipment; and a statement of the general competitive conditions in
19the industry or business in which it is or will be engaged.
SB483,52,220 (b) With respect to each director and officer of the issuer, and other person
21having a similar status or performing similar functions, the person's name, address,
22and principal occupation for the previous 5 years; the amount of securities of the
23issuer held by the person as of the 30th day before the filing of the registration
24statement; the amount of the securities covered by the registration statement to
25which the person has indicated an intention to subscribe; and a description of any

1material interest of the person in any material transaction with the issuer or a
2significant subsidiary effected within the previous 3 years or proposed to be effected.
SB483,52,63 (c) With respect to persons covered by par. (b), the aggregate sum of the
4remuneration paid to those persons during the previous 12 months and estimated
5to be paid during the next 12 months, directly or indirectly, by the issuer, and all
6predecessors, parents, subsidiaries, and affiliates of the issue.
SB483,52,97 (d) With respect to a person owning of record or owning beneficially, if known,
810 percent or more of the outstanding shares of any class of equity security of the
9issuer, the information specified in par. (b) other than the person's occupation.
SB483,52,1310 (e) With respect to a promoter, if the issuer was organized within the previous
113 years, the information or records specified in par. (b), any amount paid to the
12promoter within that period or intended to be paid to the promoter, and the
13consideration for the payment.
SB483,52,2014 (f) With respect to a person on whose behalf any part of the offering is to be made
15in a nonissuer distribution, the person's name and address; the amount of securities
16of the issuer held by the person as of the date of the filing of the registration
17statement; a description of any material interest of the person in any material
18transaction with the issuer or any significant subsidiary effected within the previous
193 years or proposed to be effected; and a statement of the reasons for making the
20offering.
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