UNOFFICIAL COPY 23 RS BR 1591
Page 1 of 2
XXXX 2/19/2023 4:27 PM Jacketed
AN ACT relating to securities. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘Section 1. KRS 292.420 is amended to read as follows: 3
(1) In any proceeding under this chapter, the burden of proving an exemption or an 4
exception from a definition is upon the person claiming it. 5
(2) (a) The commissioner may require any person, who is selling or offering for sale 6
or who is about to sell or offer for sale or who has sold or offered for sale any 7
security within this state, to file a statement of the claim of exemption, if any, 8
upon which the[such] person is relying, and if any time, in the opinion of the 9
commissioner, the information contained in the[such] statement filed is 10
misleading, incorrect, inadequate, or fails to establish the right of exemption, 11
the commissioner may require the[such] person, agent, or investment adviser 12
to file the[such] information as may in his or her opinion be necessary to 13
establish the claimed exemption. 14
(b) The refusal to furnish information as required by order of the commissioner 15
pursuant to the provisions of this subsection, within a reasonable time to be 16
fixed by the commissioner, shall be proper ground for the entry of an order by 17
the commissioner suspending or[and/or] canceling the registration of the 18
broker-dealer, agent, or investment adviser. 19
(3) (a) The commissioner shall have authority at all times to consider and determine 20
whether any proposed sale, transaction, issue, or security is entitled to an 21
exemption or an exception from the definition accorded by this chapter, 22
except[provided, however,] that the commissioner in his or her discretion may 23
decline to exercise his or her[such] authority as to any proposed sale, 24
transaction, issue, or security. 25
(b) Any interested party desiring the commissioner to exercise his or her[such] 26
authority shall submit to the commissioner a verified statement of all material 27 UNOFFICIAL COPY 23 RS BR 1591
Page 2 of 2
XXXX 2/19/2023 4:27 PM Jacketed
facts relating to the proposed sale, transaction, issue, or security, which 1
verified statement shall be accompanied by a request for a ruling as to the 2
particular exemption or exception from definition, together with a filing fee of 3
two hundred fifty dollars ($250). 4
(c) After any[such] notice to interested parties as the commissioner shall deem 5
proper and after a hearing, if any, the commissioner may enter an order 6
finding the proposed sale, transaction, issue, or security entitled or not entitled 7
to the exemption or the exception from definition as claimed. 8
(d) An order so entered, unless an appeal be taken therefrom in the manner 9
prescribed in this chapter, shall be binding upon the commissioner, provided 10
that the proposed sale, transaction, issue, or security when consummated or 11
issued conforms in every relevant and material particular with the facts as set 12
forth in the verified statement as submitted. 13