§ 2.9.5.2 THE SEC'S INFLUENCE

• Jurisdiction: Arizona

§ 2.9.5.2 The SEC's Influence

Hastings wanted to start with a draft bill to show the Securities Committee what he and Jacobson had in mind. His first step was to contact the SEC to get the federal agency's views on how best to draft a new act. He told the SEC that Arizona's existing laws "were inadequate in every way." What was needed, he said, was a "stiff law" to protect the public and help legitimate promoters.³⁶⁷

Correspondence between the SEC and Hastings shows that the SEC had not developed a position on how state securities legislation should be written.³⁶⁸ The SEC was willing to provide comments. But with one exception, the SEC's markup and comments were minor.

The exception...