Provides relative to the filing of certain federal covered securities
Impact
By requiring notice filings and establishing a specific process for federal covered securities, HB 233 aims to clarify the regulatory landscape for issuers. This can potentially enhance investor protection by ensuring that appropriate disclosures are made available at the state level. The requirement for a filing fee of $150 for initial and subsequent notices further formalizes the registration process and provides a source of revenue for the state’s regulatory authority.
Summary
House Bill 233, enacted in 2018, addresses the registration process for certain federal covered securities in Louisiana. The bill mandates that issuers of securities, defined as federal covered under the Securities Act of 1933, must submit notice filings to the state's commissioner. This applies particularly when the issuer's principal place of business is in Louisiana or when a substantial portion of the securities is purchased by residents of the state. The intention is to ensure transparency and compliance with both state and federal regulations regarding securities offerings.
Sentiment
The sentiment around HB 233 appears to be generally supportive among regulatory bodies, viewing it as a positive step toward aligning state laws with federal securities regulations. This alignment is seen as beneficial for maintaining streamlined compliance for businesses operating in Louisiana, particularly in the growing sector of crowdfunding. However, there may be concerns among smaller organizations about the added financial burden of filing fees and compliance requirements.
Contention
While the bill received a favorable vote in the Senate with 32 yeas to 1 nay, there is a recognition that regulatory measures in the securities sector can often be contentious. Opponents may argue that increased requirements could impose more administrative burdens on small businesses and startups engaging in crowdfunding activities. Nonetheless, proponents highlight the importance of regulatory oversight to protect investors and maintain market integrity.