Bill > HB06875

This bill modifies Connecticut's Uniform Securities Act in several key ways. First, it creates a new exemption for "merger and acquisition broker-dealers" who help facilitate the sale of privately held companies, allowing them to avoid certain registration requirements if they meet specific conditions. These conditions include only working with companies below certain financial thresholds, ensuring the buyer will actively manage the company, and providing financial transparency to potential buyers. Second, the bill expands the Banking Commissioner's enforcement powers, explicitly allowing them to censure or impose bars on registrants, their partners, officers, directors, and other controlling persons. Third, the bill establishes new requirements for "Tier 2" securities offerings under Regulation A, mandating that issuers file a notice with the state commissioner at least 21 days before the initial sale, pay a $250 filing fee, and renew their filing annually. The bill aims to provide more flexibility for small business transactions while maintaining investor protections by creating clear guidelines for merger and acquisition brokers and giving regulators more tools to address potential misconduct in the securities market.

Business and Industry

Banking Committee (Joint)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB06875&which_year=2025