In more recent times, the problems wrought by these blue sky laws have been ameliorated, at least to an extent, by some federal preemption of state authority over registration.
Part II explains the current role of blue sky laws in regard to capital-formation regulation.
(8) By the time Congress passed the federal Securities Act of 1933 (the 1933 Act), forty-seven of the forty-eight states as well as the then-territory of Hawaii had adopted blue sky laws. (9)
The TSA, like other states' Blue Sky laws, provides for secondary liability for both intentional and reckless conduct.
Astarita, Introduction to the Blue Sky Laws, SECLAW.COM, ("While the SEC directly, and through its oversight of the NASD and the various Exchanges, is the main enforcer of the nation's securities laws, each individual state has its own securities laws and rules.
(133) Grossbard and the class brought claims for negligence, violations of the Nebraska Blue Sky law, negligent misrepresentation, and fraudulent misrepresentation.
Although every state has its own securities laws, commonly known as "blue sky laws
," the Uniform Securities Act served as the model in 36 states and the District of Columbia.
Effective lobbying, principally by the Investment Bankers Association (IBA), had riddled most state blue sky laws with exemptions.(119)
After Congress enacted federal securities laws, primarily in 1933 and 1934, the intriguing question is why did the blue sky laws endure?
The SEC legislation specifically preserved the blue sky laws. Far from preempting a field when interstate commerce is involved, Congress in this case affirmatively yielded to local regulation by inserting a number of intrastate exemptions even when the malls or facilities of interstate commerce are used(123) and more broadly adopted provisions generally "preserving the jurisdiction of the state securities commissions."(124)
Before they even begin to describe the federal securities laws, the authors devote over one hundred pages to tracing the history of the Blue Sky laws
and analyzing their provisions (pp.