SB 604

Under current law, with certain exceptions, a person may not offer or sell a

security in this state unless the security is registered with the Division of Securities

(division) in the Department of Financial Institutions. Certain exceptions apply to

securities issued, insured, or guaranteed by political subdivisions of states or by

certain foreign governments or their political subdivisions, and to sales and offers to

sell to institutional investors. In addition, broker-dealers and investment advisors

are exempt from a requirement under current law to register with the division if they

deal in this state exclusively with specified persons, including institutional

investors. Current law also exempts certain investment advisors registered under

federal law from filing a required notice with the division if they do not have a place

of business in this state and they deal in this state exclusively with specified persons,

including institutional investors. Current law defines "institutional investor" to

include certain employee benefits plans of a political subdivision of a state, but does

not define "political subdivision."

This bill defines what constitutes a political subdivision of this state for

purposes of the provisions of current law described above. Under this bill, "political

subdivision of a state" means, with respect to this state, a city, village, town, or

county.