DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ponti HB No. 1234
Abstract: Requires the registration of Regulation A securities pursuant to the Louisiana
Securities Law.
Present law provides that Regulation A securities are exempt from the offer of sale of dealers or
salesmen to sell any securities within or from the state of La. under the La. Securities Law, unless
the dealer or salesman is:
(1)Registered in the office of the commissioner pursuant to present law.
(2)The person is registered as a dealer pursuant to present law.
(3)The only clients of the person in the state of La. are investment companies as defined in
the Investment Company Act of 1940 or insurance companies.
Proposed law removes Regulation A from the exemption under present law and requires the
registration of Regulation A securities under the La. Securities Law.
Proposed law provides for the terms and conditions for registration of Regulation A securities by
requiring the following:
(1)A notice of intention to sell, executed by the issuer, any other person on whose behalf the
offering is to be made, a dealer registered under present law, or any duly authorized agent
of any such person who sets forth the name and address of the applicant, the name and
address of the issuer, and the title of the securities to be offered in the state of La.
(2)A copy of the notification on Form 1-A or any form substituted therefor, and related
offering circular or offering sheet, including other exhibits, filed with the Securities and
Exchange Commission.
(3)A filing fee of 1/10 of 1/100 (one per centum) of the aggregate price of the securities to
be offered to be sold in the state of La. In no case can the fee be less than $100 nor more
than $1,000, and in addition, there will be a charge of $250 to be used to defray the
expenses of the commissioner. All fees and charges paid in accordance with proposed
law, whether paid at the time of filing or at the time of renewal, are to be transmitted to
the state treasurer for credit to the state general fund, except that the $250 fee required
pursuant to present law is retained by the commissioner to be used for the enforcement of provisions of both proposed and present law.
(4)A consent to service of process in the form prescribed by the commission pursuant to
present law, executed by the person who executed the notice of intention to sell, unless
the person has previously filed with the commissioner an irrevocable consent to service of
process in the form prescribed by present law (R.S. 51:718).
Registration of Regulation A securities pursuant to proposed law becomes effective when
ordered by the commissioner.
(Amends R.S. 51:709(5)(a)(intro. para.) and (ii); Adds R.S. 51:705(H))