House Bill 556 Summary

• Amends section 30-14-302 to correct terminology regarding federal covered securities by adding references to 15 U.S.C. 77r(b)(2) and clarifying notice filing requirements for mutual funds and unit investment trusts.

• Amends section 30-14-412 to clarify disciplinary conditions for broker-dealers, agents, investment advisers, and investment adviser representatives, including restrictions on proceedings based on orders from other states reported more than one year after issuance.

• Amends section 30-14-509 to revise the statute of limitations for civil liability actions, changing timeframes from "one year" to "three (3) years" for certain violations and from "two years" to "three (23) years" for discovery-based claims, with a five-year absolute deadline.

• Amends section 30-14-605 to provide correct references to United States Code sections 15 U.S.C. 78o(i) and 15 U.S.C. 80b-18a regarding financial statements and corrects terminology from "investment advisors" to "investment advisers."

• Declares an emergency and makes the bill effective July 1, 2022.