Relief for Small Businesses Through Micro-Offerings Act of 2020

Bill: 116-hr-6252
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2020-03-12
Policy area: Finance and Financial Sector
Subjects: Administrative remedies

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Securities and Exchange Commission (SEC)
Latest action: action_date: 2020-03-12
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-03-12
action_desc: Introduced in House
text: <p><b>Relief for Small Businesses Through Micro-Offerings Act of 2020 </b></p> <p>This bill temporarily exempts certain securities offerings from the registration requirements of the Securities and Exchange Commission (SEC). Specifically, securities offerings are exempt from these registration requirements if (1) the aggregate amount of securities sold to all investors by the issuer is not more than $250,000, (2) the amount sold to any investor by the issuer does not exceed $5,000, and (3) the transaction is conducted through a registered broker or funding portal. This exemption ends three years after the date of enactment. </p> <p>The SEC may by rule prohibit a person from engaging in such an offering if the person is&nbsp;subject to certain bad-actor or statutory disqualifications. </p> <p>The Government Accountability Office must report on the impact of this exemption. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6252 IN THE HOUSE OF REPRESENTATIVES March 12, 2020 Mr. McHenry (for himself, Mrs. Wagner , Mr. Barr , Mr. Stivers , and Mr. Huizenga ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Securities Act of 1933 to provide an exemption for certain micro-offering transactions, and for other purposes.

1. Short title This Act may be cited as the Relief for Small Businesses Through Micro-Offerings Act of 2020 . 2. Exempt transactions for certain micro-offerings (a) In general Section 4(a) of the Securities Act of 1933 ( 15 U.S.C. 77d(a) ) is amended by adding at the end the following: (8) transactions involving the offer or sale of securities by an issuer (including all entities controlled by or under common control with the issuer), provided that— (A) the aggregate amount sold to all investors by the issuer, including any amount sold in reliance on the exemption provided under this paragraph during the 12-month period preceding the date of such transaction, is not more than $250,000; (B) the aggregate amount sold to any investor by an issuer, including any amount sold in reliance on the exemption provided under this paragraph during the 12-month period preceding the date of such transaction, does not exceed $5,000; and (C) the transaction is conducted through a broker or funding portal registered with the Commission. . (b) Authority To prohibit bad actors In issuing rules to carry out section 4(a)(8) of the Securities Act of 1933, as added by subsection (a), the Securities and Exchange Commission may prohibit a person from engaging in a transaction described under such section 4(a)(8) if such person is subject to an event that would disqualify an issuer or other covered person under Rule 506(d)(1) of Regulation D (17 CFR 230.506(d)(1)) or is subject to a statutory disqualification described under section 3(a)(39) of the Securities Exchange Act of 1934. (c) Termination Effective on the date that is 3 years after the date of the enactment of this Act, paragraph (8) of section 4(a) of the Securities Act of 1933 ( 15 U.S.C. 77d(a) ), as added by subsection (a), is repealed. (d) Study Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to Congress a study on the impact of paragraph (8) of section 4(a) of the Securities Act of 1933 ( 15 U.S.C. 77d(a) ), as added by subsection (a).