HF4040 Summary

• Modifies federal covered securities notice filing requirements to be effective for one year and allows renewal by filing updated SEC records with a previously filed consent to service of process incorporated by reference.

• Establishes Regulation A - Tier 2 offering requirements including initial filing at least 21 calendar days before first sale, 12-month effectiveness period, and renewal/amendment procedures.

• Adds continuing education requirements for individuals registered as agents or investment adviser representatives, requiring participation in programs approved by the SEC and administered by self-regulatory organizations, effective January 1, 2025.

• Modifies franchise fee handling to allow commissioner to require escrow, impoundment, or deferral of franchise fees until the franchise business opens if adequate financial arrangements are not demonstrated.

• Requires commissioner of commerce to adopt rules implementing changes to investment adviser registration continuing education and franchise fee deferral, with authority to use expedited rulemaking procedures.