§ 51:2389 — Regulation, reporting, and examination

Louisiana § 51:2389

• Jurisdiction: Louisiana
• Title 51: Trade and Commerce

Text

A.(1) The commissioner shall administer this Chapter. The commissioner may issue orders and promulgate rules and regulations that, in the opinion of the commissioner, are necessary to execute, enforce, and effectuate the purposes of this Chapter. Any rules and regulations promulgated shall be promulgated in accordance with the Administrative Procedure Act, R.S. 49:950 et seq.
(2) Whenever the commissioner issues an order or license under this Chapter, the commissioner may impose conditions that are necessary, in the opinion of the commissioner, to carry out the provisions of this Chapter and its purposes.
(3) The commissioner may honor applications from interested persons for declaratory rulings regarding any provision of this Chapter.
(4) Every final order, decision, license, or other official act of the commissioner under this Chapter is subject to judicial review in accordance with law.
B. An application filed with the commissioner under this Chapter shall be in such form and contain such information as the commissioner may require by regulation.
C.(1) The commissioner may make public or private investigations within or outside this state that the commissioner considers necessary to determine whether to approve an application filed with the commissioner under this Chapter, to determine whether a person has violated or is about to violate this Chapter, to aid in the enforcement of this Chapter, or to aid in issuing an order or promulgating a rule under this Chapter.
(2) For purposes of an investigation, examination, or other proceeding under this Chapter, the commissioner may administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner considers relevant or material to the proceeding.
(3) If a person fails to comply with a subpoena issued by the commissioner or to testify with respect to a matter concerning which the person may lawfully be questioned, the district court for the parish of East Baton Rouge, on application of the commissioner, may issue an order requiring the attendance of the person and the giving of testimony or production of evidence.
D. Service of process authorized to be made by the commissioner in connection with a noncriminal proceeding under this Chapter may be made by registered or certified mail.
E.(1) A fee shall be paid to, and collected by, the commissioner, as follows:
(a) The fee for filing an application for a license is five thousand dollars.
(b) The fee for filing an application for approval to acquire control of a licensee is five thousand dollars.
(c) The fee for filing an application for approval for a licensee to merge with another corporation or limited liability company, an application for approval for a licensee to purchase all or substantially all of the business of another person, or an application for approval for a licensee to sell all or substantially all of its business or of the business of any of its officers to another licensee is five thousand dollars. If two or more applications relating to the same merger, purchase, or sale are filed, the fee for filing each application shall be the quotient determined by dividing five thousand dollars by the number of the applications.
(d) Whenever the commissioner examines a licensee or a subsidiary of a licensee, within ten days after receiving a statement from the commissioner, the licensee shall pay a fee established by the commissioner based on the number of examiner hours used for the examination, plus travel expenses. Examiner time shall be billed at a rate not less than fifty dollars per hour or five hundred dollars, whichever is greater.
(2) A fee for filing an application with the commissioner is nonrefundable and shall be paid at the time the application is filed with the commissioner.
F.(1) A licensee shall make and keep books, accounts, and other records in such a form and manner as the commissioner may require. These records shall be kept in Louisiana at such a place and shall be preserved for such a length of time as the commissioner may specify.
(2) The commissioner may require by order that a licensee write down any asset on its books and records to a valuation which represents its present value.
(3) Not more than one hundred twenty days after the close of each calendar year, or longer period if specified by the commissioner, a licensee shall file with the commissioner an audit report containing all of the following:
(a) Financial statement, including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position or, for a licensee that is a Louisiana nonprofit corporation, comparable financial statements for, or as of the end of, the calendar year, prepared with an audit by an independent certified public accountant in accordance with generally accepted accounting principles.
(b) Other reasonable information that the commissioner may require.
G.(1) If a person other than a licensee makes or keeps the books, accounts, or other records of that licensee, this Chapter applies to that person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if that person were the licensee.
(2) If a person other than an affiliate or subsidiary of a licensee makes or keeps any of the books, accounts, or other records of that affiliate or subsidiary, this Chapter applies to that person with respect to those books, accounts, and other records to the same extent as if that person were the affiliate or subsidiary.
(3) If the commissioner considers it expedient, the commissioner may require any particular licensee to obtain the approval of the commissioner before permitting another person to make or keep any of the books, accounts, or other records of the licensee.
(4) All of the books, accounts, or other records of the licensee shall be made available to the commissioner upon request and shall be maintained at the principal corporate offices of the licensee at all times.
(5) All of the records and reports provided to the office of financial institutions shall be kept strictly confidential within the office. All such records and reports shall not be subject to subpoena or other legal process, except as set forth in R.S. 9:3518.1. The provisions of R.S. 9:3518.1 shall also apply to any request by a third party for any record in the custody or control of the office of financial institutions relating to the supervision and regulation of any entity licensed by the office of financial institutions pursuant to this Chapter.
H. If the licensee elects to provide financing assistance outside of this state, then beginning October 1, 2004, and each quarter thereafter, the licensee shall report to the commissioner a listing of all financing assistance provided to business firms that the licensee made during the previous calendar quarter. Such report shall segregate all investments made outside of this state and include but not be limited to the following:
(1) The legal name and address of the company receiving the investment.
(2) A brief description of the nature of the business.
(3) The NAICS code for the investment.
(4) The date and amount of the investment.
(5) The percent guaranteed, the guaranteed amount, and from whom the guarantee was received.
(6) Whether the investment was a participation purchased or sold, and whom it was purchased from or sold to.

Legislative History

Acts 1991, No. 506, §1; Acts 1997, No. 366, §5; Acts 2004, No. 806, §1.