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<!DOCTYPE bill PUBLIC "-//US Congress//DTDs/bill.dtd//EN" "bill.dtd"> |
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<bill bill-stage="Introduced-in-Senate" bill-type="olc" dms-id="A1" public-private="public"><metadata xmlns:dc="http://purl.org/dc/elements/1.1/"> |
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<dublinCore> |
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<dc:title>115 S1031 IS: Crowdfunding Enhancement Act</dc:title> |
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<dc:publisher>U.S. Senate</dc:publisher> |
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<dc:date>2017-05-03</dc:date> |
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<dc:format>text/xml</dc:format> |
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<dc:language>EN</dc:language> |
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<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights> |
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</dublinCore> |
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</metadata> |
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<form> |
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<distribution-code display="yes">II</distribution-code><congress>115th CONGRESS</congress><session>1st Session</session><legis-num>S. 1031</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20170503">May 3, 2017</action-date><action-desc><sponsor name-id="S375">Mr. Daines</sponsor> introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSBK00">Committee on Banking, Housing, and Urban Affairs</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To amend provisions in the securities laws relating to regulation crowdfunding to raise the dollar |
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amount limit and to clarify certain requirements and exclusions for |
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funding portals established by such Act.</official-title></form> |
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<legis-body display-enacting-clause="yes-display-enacting-clause" id="H3D97234F17CD4878AC91635E0AA73B25" style="OLC"> |
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<section id="id80F6C3AA776049CD97CDAFB8CA7B008A" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Crowdfunding Enhancement Act</short-title></quote>.</text> </section><section id="H4EC0D08C55BD485F9AAA3C707C738117"><enum>2.</enum><header>Crowdfunding vehicles</header> <subsection id="H5E8745B924314E00BE3F15EF8ACCA39E"><enum>(a)</enum><header>Amendments to the Securities Act of 1933</header><text display-inline="yes-display-inline">The Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77a">15 U.S.C. 77a</external-xref> et seq.) is amended—</text> |
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<paragraph id="H89660851C2FA4843A5188D59786BD8CE"><enum>(1)</enum><text>in section 4A(f)(3) (<external-xref legal-doc="usc" parsable-cite="usc/15/77d-1">15 U.S.C. 77d–1(f)(3)</external-xref>), by inserting <quote>by any of paragraphs (1) through (14) of</quote> before <quote>section 3(c)</quote>; and</text> </paragraph><paragraph id="HD691ECAA95964AE2BED756A6CF707773"><enum>(2)</enum><text>in section 4(a)(6)(B) (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d(a)(6)(B)</external-xref>), by inserting <quote>, other than a crowdfunding vehicle (as defined in section 2(a) of the Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2(a)</external-xref>)),</quote> after <quote>any investor</quote>.</text> |
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</paragraph></subsection><subsection id="HF5CC7E7F2E624E39B6EC2F24C32FF216"><enum>(b)</enum><header>Amendments to the Investment Company Act of 1940</header><text display-inline="yes-display-inline">The Investment Company Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-1">15 U.S.C. 80a–1</external-xref> et seq.) is amended—</text> <paragraph id="H4F866AA898F242D7A0E788E805E93C3B"><enum>(1)</enum><text>in section 2(a) (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-2">15 U.S.C. 80a–2(a)</external-xref>), by adding at the end the following:</text> |
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<quoted-block display-inline="no-display-inline" id="H3C58D5E69AA942059AB59CB9F2DEBF99" style="OLC"> |
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<paragraph id="HCAFA6DD8ABE849A2869062EC6891153A"><enum>(55)</enum><text display-inline="yes-display-inline">The term <quote>crowdfunding vehicle</quote> means a company—</text> <subparagraph id="HF8D50831974B48FCBC49C60E977B66CA"><enum>(A)</enum><text display-inline="yes-display-inline">whose purpose (as set forth in its organizational documents) is limited to acquiring, holding, and disposing securities issued by a single company in one or more transactions and made pursuant to section 4(a)(6) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d(a)(6)</external-xref>);</text> |
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</subparagraph><subparagraph id="HF0D21A41515D4327AD115A1681E0B241"><enum>(B)</enum><text>that issues only 1 class of securities;</text> </subparagraph><subparagraph id="H02AB9818FB3F487B93B5D96B65E6AAA3"><enum>(C)</enum><text>that receives no compensation in connection with such acquisition, holding, or disposition of securities;</text> |
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</subparagraph><subparagraph id="HB5C0C90854B44420A1273A292599CDE3"><enum>(D)</enum><text display-inline="yes-display-inline">no associated person of which receives any compensation in connection with such acquisition, holding or disposition of securities unless such person is acting as or on behalf of an investment adviser registered under the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-1">15 U.S.C. 80b–1</external-xref> et seq.) or registered as an investment adviser in the State in which the investment adviser maintains its principal office and place of business;</text> |
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</subparagraph><subparagraph id="H03E5116D453A40A080FB7D44699A12C6"><enum>(E)</enum><text display-inline="yes-display-inline">the securities of which have been issued in a transaction made pursuant to section 4(a)(6) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d(a)(6)</external-xref>), if both the crowdfunding vehicle and the company whose securities it holds are co-issuers;</text> |
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</subparagraph><subparagraph id="H944F6A670AB3481EA70C270142AD8B8D"><enum>(F)</enum><text>that is current in its ongoing disclosure obligations under section 227.202 of title 17, Code of Federal Regulations;</text> |
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</subparagraph><subparagraph id="H8EC52495B4B3485DA709348C82F1277A"><enum>(G)</enum><text display-inline="yes-display-inline">the company whose securities it holds is current in its ongoing disclosure obligations under section 227.202 of title 17, Code of Federal Regulations; and</text> |
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</subparagraph><subparagraph id="H74EF33719EB94DBBA85BFE4B998CBF0F"><enum>(H)</enum><text display-inline="yes-display-inline">is advised by an investment adviser registered under the Investment Advisers Act of 1940 (<external-xref legal-doc="usc" parsable-cite="usc/15/80b-1">15 U.S.C. 80b–1</external-xref> et seq.) or registered as an investment adviser in the State in which the investment adviser maintains its principal office and place of business.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> |
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</paragraph><paragraph id="H6C880818372B445480E12B57CCC85319"><enum>(2)</enum><text>in section 3(c) (<external-xref legal-doc="usc" parsable-cite="usc/15/80a-3">15 U.S.C. 80a–3(c)</external-xref>), by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA4D46D75F4BE4022A57A309F5960CC83" style="OLC"> <paragraph id="H5E072E81EDAC42D991DCCF8AC873CB0E"><enum>(15)</enum><text display-inline="yes-display-inline">Any crowdfunding vehicle.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> |
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</paragraph></subsection></section><section id="H566106C1BA8145A9BD728D905C15AA47"><enum>3.</enum><header>Crowdfunding exemption from registration</header><text display-inline="no-display-inline">Section 12(g)(6) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15 U.S.C. 78l(g)(6)</external-xref>) is amended—</text> <paragraph id="H6E31C29870F041F3A6AC393FC4E3925E"><enum>(1)</enum><text>by striking <quote>The Commission</quote> and inserting the following:</text> |
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<quoted-block display-inline="no-display-inline" id="HBA5ECD75EACE47F1ACC8EC565F427413" style="OLC"> |
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<subparagraph id="H9C0091D97F964D5F9CB5F76EE3FD5D21"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Commission</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="H72FCD6ED76B444A18D1864ADF5DE191E"><enum>(2)</enum><text>by striking <quote>section 4(6)</quote> and inserting <quote>section 4(a)(6)</quote>; and</text> |
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</paragraph><paragraph id="HA8B4FF3F981A4AD99AC38522656364C9"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H82733950560C4806A38F8FE7783FB293" style="OLC"> <subparagraph id="H154E47E835CB411ABC7DD0D49FE62172"><enum>(B)</enum><header>Treatment of securities issued by certain issuers</header><text display-inline="yes-display-inline">An exemption under subparagraph (A) shall be unconditional for securities offered by an issuer that had a public float of less than $75,000,000 as of the last business day of the issuer’s most recently completed semiannual period, computed by multiplying the aggregate worldwide number of shares of the issuer’s common equity securities held by non-affiliates by the price at which such securities were last sold (or the average bid and asked prices of such securities) in the principal market for such securities or, in the event the result of such public float calculation is zero, had annual revenues of less than $50,000,000 as of the issuer’s most recently completed fiscal year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></legis-body></bill> |
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