BLUE SKY LAW
BLUE SKY LAW. The Blue Sky Law, enacted by the Thirty-eighth Legislature as House Bill 177 on May 15, 1923, was designed to stop the flow of worthless stock certificates into Texas and was directed largely at oil companies. The statute required concerns offering stock for sale in Texas to file applications with the secretary of state for permits to sell the securities. Each application was to give the previous business of the officers of the company and to have attached a financial statement of the company's resources. The law remained in force until it was superseded by the Securities Act passed by the Forty-fourth Legislature in 1935.
BIBLIOGRAPHY: General Laws of the State of Texas Passed by the Thirty-eighth Legislature at Its First, Second and Third Sessions, 1923 (Austin: Secretary of State, 1923).