Helping Angels Lead Our Startups Act

Bill: 114-hr-4498
Sponsor: full_name: Rep. Chabot, Steve [R-OH-1]
Introduced: 2016-02-09
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Business investment and capital

Financial services and investments

Higher education

Marketing and advertising

Securities

Securities and Exchange Commission (SEC)

Social work, volunteer service, charitable organizations
Latest action: action_date: 2016-04-28
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2016-02-09
action_desc: Introduced in House
text: <p><b>Helping Angels Lead Our Startups Act or the HALOS Act</b></p> <p> This bill directs the Securities and Exchange Commission to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:</p> <ul> <li>presentations or communications are made by or on behalf of an issuer,</li> <li>the advertising does not refer to any specific offering of securities by the issuer,</li> <li>the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),</li> <li>the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and</li> <li>no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).</li> </ul> <p>This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.</p>

action_date: 2016-04-19
action_desc: Reported to House without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><b>Helping Angels Lead Our Startups Act or the HALOS Act</b></p> <p> (Sec. 3) This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:</p> <ul> <li>presentations or communications are made by or on behalf of an issuer,</li> <li>the advertising does not refer to any specific offering of securities by the issuer,</li> <li>the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),</li> <li>the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and</li> <li>no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).</li> </ul> <p>This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.</p>

action_date: 2016-04-27
action_desc: Passed House without amendment
text: <p>(This measure has not been amended since it was introduced. The expanded summary of the House reported version is repeated here.)</p> <p><b>Helping Angels Lead Our Startups Act or the HALOS Act</b></p> <p> (Sec. 3) This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:</p> <ul> <li>presentations or communications are made by or on behalf of an issuer,</li> <li>the advertising does not refer to any specific offering of securities by the issuer,</li> <li>the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),</li> <li>the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and</li> <li>no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).</li> </ul> <p>This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4498 IN THE HOUSE OF REPRESENTATIVES February 9, 2016 Mr. Chabot (for himself, Ms. Sinema , Mr. Hurt of Virginia , and Mr. Takai ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To clarify the definition of general solicitation under Federal securities law.

1. Short title This Act may be cited as the Helping Angels Lead Our Startups Act or the HALOS Act . 2. Definition of angel investor group As used in this Act, the term angel investor group means any group that— (1) is composed of accredited investors interested in investing personal capital in early-stage companies; (2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and (3) is neither associated nor affiliated with brokers, dealers, or investment advisers. 3. Clarification of general solicitation (a) In general Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 C.F.R. 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event— (1) sponsored by— (A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing; (B) a college, university, or other institution of higher education; (C) a nonprofit organization; (D) an angel investor group; (E) a venture forum, venture capital association, or trade association; or (F) any other group, person or entity as the Securities and Exchange Commission may determine by rule; (2) where any advertising for the event does not reference any specific offering of securities by the issuer; (3) the sponsor of which— (A) does not make investment recommendations or provide investment advice to event attendees; (B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event; (C) does not charge event attendees any fees other than administrative fees; and (D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and (4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than— (A) that the issuer is in the process of offering securities or planning to offer securities; (B) the type and amount of securities being offered; (C) the amount of securities being offered that have already been subscribed for; and (D) the intended use of proceeds of the offering. (b) Rule of construction Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

tv_txt: IB 114th CONGRESS 2d Session H. R. 4498 IN THE HOUSE OF REPRESENTATIVES AN ACT To clarify the definition of general solicitation under Federal securities law.

1. Short title This Act may be cited as the Helping Angels Lead Our Startups Act or the HALOS Act . 2. Definition of angel investor group As used in this Act, the term angel investor group means any group that— (1) is composed of accredited investors interested in investing personal capital in early-stage companies; (2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and (3) is neither associated nor affiliated with brokers, dealers, or investment advisers. 3. Clarification of general solicitation (a) In general Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 CFR 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event— (1) sponsored by— (A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing; (B) a college, university, or other institution of higher education; (C) a nonprofit organization; (D) an angel investor group; (E) a venture forum, venture capital association, or trade association; or (F) any other group, person or entity as the Securities and Exchange Commission may determine by rule; (2) where any advertising for the event does not reference any specific offering of securities by the issuer; (3) the sponsor of which— (A) does not make investment recommendations or provide investment advice to event attendees; (B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event; (C) does not charge event attendees any fees other than administrative fees; and (D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and (4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than— (A) that the issuer is in the process of offering securities or planning to offer securities; (B) the type and amount of securities being offered; (C) the amount of securities being offered that have already been subscribed for; and (D) the intended use of proceeds of the offering. (b) Rule of construction Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

Passed the House of Representatives April 27, 2016. Karen L. Haas, Clerk.

tv_txt: IIB 114th CONGRESS 2d Session H. R. 4498 IN THE SENATE OF THE UNITED STATES April 28, 2016 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To clarify the definition of general solicitation under Federal securities law.

1. Short title This Act may be cited as the Helping Angels Lead Our Startups Act or the HALOS Act . 2. Definition of angel investor group As used in this Act, the term angel investor group means any group that— (1) is composed of accredited investors interested in investing personal capital in early-stage companies; (2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and (3) is neither associated nor affiliated with brokers, dealers, or investment advisers. 3. Clarification of general solicitation (a) In general Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 CFR 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event— (1) sponsored by— (A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing; (B) a college, university, or other institution of higher education; (C) a nonprofit organization; (D) an angel investor group; (E) a venture forum, venture capital association, or trade association; or (F) any other group, person or entity as the Securities and Exchange Commission may determine by rule; (2) where any advertising for the event does not reference any specific offering of securities by the issuer; (3) the sponsor of which— (A) does not make investment recommendations or provide investment advice to event attendees; (B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event; (C) does not charge event attendees any fees other than administrative fees; and (D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and (4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than— (A) that the issuer is in the process of offering securities or planning to offer securities; (B) the type and amount of securities being offered; (C) the amount of securities being offered that have already been subscribed for; and (D) the intended use of proceeds of the offering. (b) Rule of construction Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

Passed the House of Representatives April 27, 2016. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 389 114th CONGRESS 2d Session H. R. 4498 [Report No. 114–509] IN THE HOUSE OF REPRESENTATIVES February 9, 2016 Mr. Chabot (for himself, Ms. Sinema , Mr. Hurt of Virginia , and Mr. Takai ) introduced the following bill; which was referred to the Committee on Financial Services April 19, 2016 Additional sponsors: Mr. Curbelo of Florida , Mrs. Wagner , Mr. Costello of Pennsylvania , Mr. Barr , Mr. Hultgren , Mr. Delaney , Mr. Sessions , and Mr. Polis April 19, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To clarify the definition of general solicitation under Federal securities law.

1. Short title This Act may be cited as the Helping Angels Lead Our Startups Act or the HALOS Act . 2. Definition of angel investor group As used in this Act, the term angel investor group means any group that— (1) is composed of accredited investors interested in investing personal capital in early-stage companies; (2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and (3) is neither associated nor affiliated with brokers, dealers, or investment advisers. 3. Clarification of general solicitation (a) In general Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 C.F.R. 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event— (1) sponsored by— (A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing; (B) a college, university, or other institution of higher education; (C) a nonprofit organization; (D) an angel investor group; (E) a venture forum, venture capital association, or trade association; or (F) any other group, person or entity as the Securities and Exchange Commission may determine by rule; (2) where any advertising for the event does not reference any specific offering of securities by the issuer; (3) the sponsor of which— (A) does not make investment recommendations or provide investment advice to event attendees; (B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event; (C) does not charge event attendees any fees other than administrative fees; and (D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and (4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than— (A) that the issuer is in the process of offering securities or planning to offer securities; (B) the type and amount of securities being offered; (C) the amount of securities being offered that have already been subscribed for; and (D) the intended use of proceeds of the offering. (b) Rule of construction Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

April 19, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed