With regards to state regulation of Reg S offerings under eb-5 business plan, what should EB-5 issuers be aware of? Are there any states that have more precarious laws that people might need to be aware?
Jackie Prester: About 20 years or so ago, Congress passed a law that effectively said, If you proceed under Rule 506, then none of the states can impose their state security registration requirements. In other words, it's all federally preempted, though each state can require you to follow a notice filing and pay some nominal fee.
There's not a similar federal preemption under Reg S, so it's important to make sure that the applicable state’s securities laws are being complied with. The question is, which state securities laws apply since you're talking about investors who are overseas?