IB Union Calendar No. 512 114th CONGRESS 2d Session H. R. 4855 [Report No. 114–661] IN THE HOUSE OF REPRESENTATIVES March 23, 2016 Mr. McHenry introduced the following bill; which was referred to the Committee on Financial Services July 5, 2016 Additional sponsor: Mr. Schweikert July 5, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on March 23, 2016 A BILL To amend provisions in the securities laws relating to regulation crowdfunding to raise the dollar amount limit and to clarify certain requirements and exclusions for funding portals established by such Act.

1. Short title This Act may be cited as the Fix Crowdfunding Act . 2. Crowdfunding vehicles (a) Amendments to the Securities Act of 1933 The Securities Act of 1933 ( 15 U.S.C. 77a et seq. ) is amended— (1) in section 4A(f)(3), by inserting by any of paragraphs (1) through (14) of before section 3(c) ; and (2) in section 4(a)(6)(B), by inserting after any investor the following: , other than a crowdfunding vehicle (as defined in section 2(a) of the Investment Company Act of 1940), . (b) Amendments to the Investment Company Act of 1940 The Investment Company Act of 1940 ( 15 U.S.C. 80a-1 et seq. ) is amended— (1) in section 2(a), by adding at the end the following: (55) The term crowdfunding vehicle means a company— (A) 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; (B) which issues only one class of securities; (C) which receives no compensation in connection with such acquisition, holding, or disposition of securities; (D) 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; (E) the securities of which have been issued in a transaction made pursuant to section 4(a)(6) of the Securities Act of 1933, where both the crowdfunding vehicle and the company whose securities it holds are co-issuers; (F) which is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 C.F.R. 227.202); (G) the company whose securities it holds is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 C.F.R. 227.202); and (H) is advised by an investment adviser registered under the Investment Advisers Act of 1940. ; and (2) in section 3(c), by adding at the end the following: (15) Any crowdfunding vehicle. . 3. Crowdfunding exemption from registration Section 12(g)(6) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78l(g)(6) is amended— (1) by striking The Commission and inserting the following: (A) In general The Commission ; (2) by striking section 4(6) and inserting section 4(a)(6) ; and (3) by adding at the end the following: (B) Treatment of securities issued by certain issuers 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. .

July 5, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed