Are Rule 506 Offerings Exempt from Blue Sky Laws?

Rule 506 offerings are exempt from further regulation at the state level, except that issuers must:

Be able to demonstrate to state regulators how they followed the applicable 506 rules,
Not pay any fees to unlicensed brokers (most states have this requirement that basically eliminates finders fees), and
File state securities notices (giving the state jurisdiction over the issuer) and pay the required notice filing fees, usually within 15 days of when an investor’s funds become “irrevocably contractually committed.”

Rule 506 offerings (b or c) are exempt from following additional state requirements, such as limiting the amount of an investment to a portion of the investor’s net worth, etc., as long as they comply with the above rules.