1.This Act may be cited as the
Jumpstart Our Business Startups
Act
.
2.The table of contents
of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Title I—Reopening American Capital Markets to Emerging Growth
Companies
Sec. 101. Definitions.
Sec. 102. Disclosure obligations.
Sec. 103. Internal controls audit.
Sec. 104. Auditing standards.
Sec. 105. Availability of information about emerging growth
companies.
Sec. 106. Other matters.
Sec. 107. Opt-in right for emerging growth
companies.
Sec. 108. Review of Regulation S-K.
Title II—Access to Capital for Job Creators
Sec. 201. Modification of exemption.
Title III—Entrepreneur Access to Capital
Sec. 301. Crowdfunding exemption.
Sec. 302. Exclusion of crowdfunding investors from shareholder
cap.
Sec. 303. Preemption of State law.
Title IV—Small Company Capital Formation
Sec. 401. Authority to exempt certain securities.
Sec. 402. Study on the impact of State Blue Sky laws on
Regulation A offerings.
Title V—Private Company Flexibility and Growth
Sec. 501. Threshold for registration.
Sec. 502. Employees.
Sec. 503. Commission rulemaking.
Sec. 504. Commission study of enforcement authority under Rule
12g5–1.
Title VI—Capital Expansion
Sec. 601. Shareholder threshold for registration.
Sec. 602. Rulemaking.
Title VII—Outreach on changes to the law
Sec. 701. Outreach by the Commission.
<enum>I</enum><header>Reopening American
Capital Markets to Emerging Growth Companies</header>
<section id="HA6F93FD7B02B4D9E9975EC125B12FF87"><enum>101.</enum><header>Definitions</header>
<subsection id="H1A6C166B193A4BEAB66F158BAECD2ECF"><enum>(a)</enum><header>Securities Act
of 1933</header><text>Section 2(a) of the Securities Act of 1933
(<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C.
77b(a)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H9E32F0FA232443DBA3B9AE644AFB5B62" style="OLC">
<paragraph id="H952BFC07C5824B59B2262DD5C9DBEA29"><enum>(19)</enum><text display-inline="yes-display-inline">The term <term>emerging growth
company</term> means an issuer that had total annual gross revenues of less
than $1,000,000,000 (as such amount is indexed for inflation every 5 years by
the Commission to reflect the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics, setting the threshold to
the nearest 1,000,000) during its most recently completed fiscal year. An
issuer that is an emerging growth company as of the first day of that fiscal
year shall continue to be deemed an emerging growth company until the earliest
of—</text>
<subparagraph id="H349DB15DD1BA455EA7D4C23722FD813D"><enum>(A)</enum><text display-inline="yes-display-inline">the last day of the fiscal year of the
issuer during which it had total annual gross revenues of $1,000,000,000 (as
such amount is indexed for inflation every 5 years by the Commission to reflect
the change in the Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or
more;</text>
</subparagraph><subparagraph id="H3FC0E73E502A49508EEC1D5B3F9BC8E3"><enum>(B)</enum><text>the last day of
the fiscal year of the issuer following the fifth anniversary of the date of
the first sale of common equity securities of the issuer pursuant to an
effective registration statement under this title;</text>
</subparagraph><subparagraph id="HA103932BDC66454BBD6FBEC27767A960"><enum>(C)</enum><text display-inline="yes-display-inline">the date on which such issuer has, during
the previous 3-year period, issued more than $1,000,000,000 in non-convertible
debt; or</text>
</subparagraph><subparagraph id="HAD511D290D564DBDB95C0A192AA80CF6"><enum>(D)</enum><text>the date on which
such issuer is deemed to be a <quote>large accelerated filer</quote>, as
defined in <external-xref legal-doc="regulation" parsable-cite="cfr/17/240.12">section 240.12b–2</external-xref> of title 17,
Code of Federal Regulations, or any successor
thereto.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0BD9CC4C40B14FC7BDAF65505397BE4F"><enum>(b)</enum><header>Securities
Exchange Act of 1934</header><text>Section 3(a) of the Securities Exchange Act
of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C.
78c(a)</external-xref>) is amended—</text>
<paragraph id="HC8050E87EE2047298577152B52963BA0"><enum>(1)</enum><text>by redesignating
paragraph (77), as added by section 941(a) of the Investor Protection and
Securities Reform Act of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>, 124 Stat. 1890),
as paragraph (79); and</text>
</paragraph><paragraph id="H4307B510F46C44CFB361AB624A4076BB"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HC1B4A828A4C84AC3B77D2F8D24594CB5" style="OLC">
<paragraph id="H3FA3EC735687413B8B2A1AA36F4C495A"><enum>(80)</enum><text display-inline="yes-display-inline"><header-in-text level="paragraph" style="OLC">Emerging growth company.—</header-in-text>The term <term>emerging
growth company</term> means an issuer that had total annual gross revenues of
less than $1,000,000,000 (as such amount is indexed for inflation every 5 years
by the Commission to reflect the change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics, setting the
threshold to the nearest 1,000,000) during its most recently completed fiscal
year. An issuer that is an emerging growth company as of the first day of that
fiscal year shall continue to be deemed an emerging growth company until the
earliest of—</text>
<subparagraph id="HEF181FF0AC5A449A95D19F9F5EEE61FC"><enum>(A)</enum><text display-inline="yes-display-inline">the last day of the fiscal year of the
issuer during which it had total annual gross revenues of $1,000,000,000 (as
such amount is indexed for inflation every 5 years by the Commission to reflect
the change in the Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or
more;</text>
</subparagraph><subparagraph id="HF35603D40F4E47ADA436D9955E0FD21D"><enum>(B)</enum><text>the last day of
the fiscal year of the issuer following the fifth anniversary of the date of
the first sale of common equity securities of the issuer pursuant to an
effective registration statement under the Securities Act of 1933;</text>
</subparagraph><subparagraph id="HAAEEF29A95874141B0BBD28F5D336875"><enum>(C)</enum><text display-inline="yes-display-inline">the date on which such issuer has, during
the previous 3-year period, issued more than $1,000,000,000 in non-convertible
debt; or</text>
</subparagraph><subparagraph id="HE05401B5427748AA8ABD89DDA34E4D47"><enum>(D)</enum><text>the date on which
such issuer is deemed to be a <quote>large accelerated filer</quote>, as
defined in <external-xref legal-doc="regulation" parsable-cite="cfr/17/240.12">section 240.12b–2</external-xref> of title 17,
Code of Federal Regulations, or any successor
thereto.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBCE4B5B405D449638B701C77258E1EBC"><enum>(c)</enum><header>Other
definitions</header><text>As used in this title, the following definitions
shall apply:</text>
<paragraph id="HC79EDA6FC4324F9BBEE426E076488F1E"><enum>(1)</enum><header>Commission</header><text>The
term <term>Commission</term> means the Securities and Exchange
Commission.</text>
</paragraph><paragraph id="H0F2D697A5A464D6AA9A69A63FBEE26AB"><enum>(2)</enum><header>Initial public
offering date</header><text>The term <term>initial public offering date</term>
means the date of the first sale of common equity securities of an issuer
pursuant to an effective registration statement under the Securities Act of
1933.</text>
</paragraph></subsection><subsection id="H183E497BF3444C5CA0AB489E3FDC18AC"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Notwithstanding section
2(a)(19) of the Securities Act of 1933 and section 3(a)(80) of the Securities
Exchange Act of 1934, an issuer shall not be an emerging growth company for
purposes of such Acts if the first sale of common equity securities of such
issuer pursuant to an effective registration statement under the Securities Act
of 1933 occurred on or before December 8, 2011.</text>
</subsection></section><section id="H05704244D6F440A29F95FABE7B3F9B3A"><enum>102.</enum><header>Disclosure
obligations</header>
<subsection id="HCE222EAB42CF45CDBD7EDBDBAA43EAAB"><enum>(a)</enum><header>Executive
compensation</header>
<paragraph id="H2D6F689481164BA8A91C790A839237D5"><enum>(1)</enum><header>Exemption</header><text>Section
14A(e) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78n-1">15 U.S.C. 78n–1(e)</external-xref>) is
amended—</text>
<subparagraph id="H2B7794E6D797409DA97E052AB4A8471C"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>The Commission
may</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H192AF136E66A4E22B68843BB7CEC887C" style="OLC">
<paragraph id="HC2DCE33A48E44215A3D80CBA71533F00"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Commission
may</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF8CB9DFD7A594140A47A4FAECD5F4EAF"><enum>(B)</enum><text>by striking
<quote>an issuer</quote> and inserting <quote>any other issuer</quote>;
and</text>
</subparagraph><subparagraph id="H94068A1092FB4236B30EC8D3C92C61E0"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7ADA2C02DD9347B49C418CFC7D3DF972" style="OLC">
<paragraph id="H5CC8BA872C164EF58359266635D198BD"><enum>(2)</enum><header>Treatment of
emerging growth companies</header>
<subparagraph id="H18CCE25D281A43C3A5AD0B7E9BF5DD1F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">An emerging growth
company shall be exempt from the requirements of subsections (a) and
(b).</text>
</subparagraph><subparagraph id="HFB433D2099B747F59A14F36DAC9351E6"><enum>(B)</enum><header>Compliance after
termination of emerging growth company treatment</header><text>An issuer that
was an emerging growth company but is no longer an emerging growth company
shall include the first separate resolution described under subsection (a)(1)
not later than the end of—</text>
<clause id="H48A1BBCEF83141B78A879158FADF3554"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of an issuer that was an
emerging growth company for less than 2 years after the date of first sale of
common equity securities of the issuer pursuant to an effective registration
statement under the Securities Act of 1933, the 3-year period beginning on such
date; and</text>
</clause><clause id="HC157086BC44D49F2A4D4C07A5274E478"><enum>(ii)</enum><text>in the case of
any other issuer, the 1-year period beginning on the date the issuer is no
longer an emerging growth
company.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4A139613EC1E45639EC824CEDC8A2308"><enum>(2)</enum><header>Proxies</header><text>Section
14(i) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78n">15 U.S.C. 78n(i)</external-xref>) is amended by
inserting <quote>, for any issuer other than an emerging growth
company,</quote> after <quote>including</quote>.</text>
</paragraph><paragraph id="HB529D602C1184FB2980540AB3CAF1C77"><enum>(3)</enum><header>Compensation
disclosures</header><text display-inline="yes-display-inline">Section 953(b)(1)
of the Investor Protection and Securities Reform Act of 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law
111–203</external-xref>; 124 Stat. 1904) is amended by inserting <quote>, other
than an emerging growth company, as that term is defined in section 3(a) of the
Securities Exchange Act of 1934,</quote> after <quote>require each
issuer</quote>.</text>
</paragraph></subsection><subsection id="H4D31B3BADC444FC998669E10135E78CC"><enum>(b)</enum><header>Financial
disclosures and accounting pronouncements</header>
<paragraph id="HA6EE4239CCE1446F96B19A0BF1D2022F"><enum>(1)</enum><header>Securities Act
of 1933</header><text>Section 7(a) of the Securities Act of 1933
(<external-xref legal-doc="usc" parsable-cite="usc/15/77g">15 U.S.C.
77g(a)</external-xref>) is amended—</text>
<subparagraph id="HEA5674ED8F234ADA8CD9F049CF138013"><enum>(A)</enum><text>by striking
<quote>(a) The registration</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H19205EC5C15F42C0A41101A9161848B8" style="OLC">
<subsection id="HC45124BDA8D34FAA88E87ED36518C1F6"><enum>(a)</enum><header>Information
required in registration statement</header>
<paragraph id="H20E7321062AC4B938217EF2EC2E72D97"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The
registration</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HC0A2EEE1D88C4BC094E744A4A8C33BD3"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H01E930E9223A4F03BA7E99F5E01AEBEC" style="OLC">
<paragraph id="HBAABC835D252411AAD41498FB7FB5E22"><enum>(2)</enum><header>Treatment of
emerging growth companies</header><text display-inline="yes-display-inline">An
emerging growth company—</text>
<subparagraph id="H8250809593904AE08215774E2C7B42DF"><enum>(A)</enum><text>need not present
more than 2 years of audited financial statements in order for the registration
statement of such emerging growth company with respect to an initial public
offering of its common equity securities to be effective, and in any other
registration statement to be filed with the Commission, an emerging growth
company need not present selected financial data in accordance with
<external-xref legal-doc="regulation" parsable-cite="cfr/17/229.301">section
229.301</external-xref> of title 17, Code of Federal Regulations, for any
period prior to the earliest audited period presented in connection with its
initial public offering; and</text>
</subparagraph><subparagraph commented="no" id="H5B7FBF90FD784E8E805244A3CDA021F9"><enum>(B)</enum><text display-inline="yes-display-inline">may not be required to comply with any new
or revised financial accounting standard until such date that a company that is
not an issuer (as defined under section 2(a) of the Sarbanes-Oxley Act of 2002
(<external-xref legal-doc="usc" parsable-cite="usc/15/7201">15 U.S.C.
7201(a)</external-xref>) is required to comply with such new or revised
accounting standard, if such standard applies to companies that are not
issuers.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE6FFDC087C6C4F789E013A98458784B6"><enum>(2)</enum><header>Securities
Exchange Act of 1934</header><text>Section 13(a) of the Securities Exchange Act
of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78m">15 U.S.C.
78m(a)</external-xref>) is amended by adding at the end the following:
<quote>In any registration statement, periodic report, or other reports to be
filed with the Commission, an emerging growth company need not present selected
financial data in accordance with
<external-xref legal-doc="regulation" parsable-cite="cfr/17/229.301">section
229.301</external-xref> of title 17, Code of Federal Regulations, for any
period prior to the earliest audited period presented in connection with its
first registration statement that became effective under this Act or the
Securities Act of 1933 and, with respect to any such statement or reports, an
emerging growth company may not be required to comply with any new or revised
financial accounting standard until such date that a company that is not an
issuer (as defined under section 2(a) of the Sarbanes-Oxley Act of 2002
(<external-xref legal-doc="usc" parsable-cite="usc/15/7201">15 U.S.C.
7201(a)</external-xref>)) is required to comply with such new or revised
accounting standard, if such standard applies to companies that are not
issuers.</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HDA4587F8185740DEB5506CF9E297FF64"><enum>(c)</enum><header>Other
disclosures</header><text>An emerging growth company may comply with
<external-xref legal-doc="regulation" parsable-cite="cfr/17/229.303">section
229.303(a)</external-xref> of title 17, Code of Federal Regulations, or any
successor thereto, by providing information required by such section with
respect to the financial statements of the emerging growth company for each
period presented pursuant to section 7(a) of the Securities Act of 1933
(<external-xref legal-doc="usc" parsable-cite="usc/15/77g">15 U.S.C.
77g(a)</external-xref>). An emerging growth company may comply with
<external-xref legal-doc="regulation" parsable-cite="cfr/17/229.402">section
229.402</external-xref> of title 17, Code of Federal Regulations, or any
successor thereto, by disclosing the same information as any issuer with a
market value of outstanding voting and nonvoting common equity held by
non-affiliates of less than $75,000,000.</text>
</subsection></section><section id="H339597AD4BE04ADDA941F1F2F35ABE7C"><enum>103.</enum><header>Internal
controls audit</header><text display-inline="no-display-inline">Section 404(b)
of the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7262">15 U.S.C. 7262(b)</external-xref>)
is amended by inserting <quote>, other than an issuer that is an emerging
growth company (as defined in section 3 of the Securities Exchange Act of
1934),</quote> before <quote>shall attest to</quote>.</text>
</section><section id="H06D028AFB22040C79C1BD43A5B2CB6C9"><enum>104.</enum><header>Auditing
standards</header><text display-inline="no-display-inline">Section 103(a)(3) of
the Sarbanes-Oxley Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7213">15 U.S.C. 7213(a)(3)</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1E3B5107378F4285883D37A605BE9478" style="OLC">
<subparagraph id="H1277DC7142904F42952E38B21EE41936"><enum>(C)</enum><header>Transition
period for emerging growth companies</header><text display-inline="yes-display-inline">Any rules of the Board requiring mandatory
audit firm rotation or a supplement to the auditor’s report in which the
auditor would be required to provide additional information about the audit and
the financial statements of the issuer (auditor discussion and analysis) shall
not apply to an audit of an emerging growth company, as defined in section 3 of
the Securities Exchange Act of 1934. Any additional rules adopted by the Board
after the date of enactment of this subparagraph shall not apply to an audit of
any emerging growth company, unless the Commission determines that the
application of such additional requirements is necessary or appropriate in the
public interest, after considering the protection of investors and whether the
action will promote efficiency, competition, and capital
formation.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5F561D2716CF4C74898EF262448CF191"><enum>105.</enum><header>Availability of
information about emerging growth companies</header>
<subsection id="H9A9D1760465A4A3B82246C271E7ACE35"><enum>(a)</enum><header>Provision of
research</header><text>Section 2(a)(3) of the Securities Act of 1933
(<external-xref legal-doc="usc" parsable-cite="usc/15/77b">15 U.S.C.
77b(a)(3)</external-xref>) is amended by adding at the end the following:
<quote>The publication or distribution by a broker or dealer of a research
report about an emerging growth company that is the subject of a proposed
public offering of the common equity securities of such emerging growth company
pursuant to a registration statement that the issuer proposes to file, or has
filed, or that is effective shall be deemed for purposes of paragraph (10) of
this subsection and section 5(c) not to constitute an offer for sale or offer
to sell a security, even if the broker or dealer is participating or will
participate in the registered offering of the securities of the issuer. As used
in this paragraph, the term <term>research report</term> means a written,
electronic, or oral communication that includes information, opinions, or
recommendations with respect to securities of an issuer or an analysis of a
security or an issuer, whether or not it provides information reasonably
sufficient upon which to base an investment decision.</quote>.</text>
</subsection><subsection id="H76D98F8D609E4EAF8E8C5978D92E3D86"><enum>(b)</enum><header>Securities
analyst communications</header><text>Section 15D of the Securities Exchange Act
of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-6">15 U.S.C.
78o–6</external-xref>) is amended—</text>
<paragraph id="HDD115CFCFFAB4E3E9A625BA5B32BEB83"><enum>(1)</enum><text>by redesignating
subsection (c) as subsection (d); and</text>
</paragraph><paragraph id="H85062F3B07484173A16A388C10412EEB"><enum>(2)</enum><text>by inserting after
subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="H69A0966463DE4D6FB32E22B6F4ED0642" style="OLC">
<subsection id="H817188B949F2476EBB5E87006EFCC015"><enum>(c)</enum><header>Limitation</header><text>Notwithstanding
subsection (a) or any other provision of law, neither the Commission nor any
national securities association registered under section 15A may adopt or
maintain any rule or regulation in connection with an initial public offering
of the common equity of an emerging growth company—</text>
<paragraph id="H52C6BEE0B9EF435B8FA1CAA9F3020A19"><enum>(1)</enum><text>restricting, based
on functional role, which associated persons of a broker, dealer, or member of
a national securities association, may arrange for communications between a
securities analyst and a potential investor; or</text>
</paragraph><paragraph id="H3A1758543E6C431FA791F5607D157333"><enum>(2)</enum><text>restricting a
securities analyst from participating in any communications with the management
of an emerging growth company that is also attended by any other associated
person of a broker, dealer, or member of a national securities association
whose functional role is other than as a securities
analyst.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H7CF0A4A163054D1DAE9E1A3B5FED7BF9"><enum>(c)</enum><header>Expanding
permissible communications</header><text>Section 5 of the Securities Act of
1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77e">15 U.S.C.
77e</external-xref>) is amended—</text>
<paragraph id="HB814B7D0C1964560ADF46931E99FB542"><enum>(1)</enum><text>by redesignating
subsection (d) as subsection (e); and</text>
</paragraph><paragraph id="H0383DC2DB2F34FB9A630CCE33DCA5837"><enum>(2)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="H1D3D429BB9D64A0F92659C2506801577" style="OLC">
<subsection id="HEB3D3F1B78BA4F7796A1E3BD338D8A97"><enum>(d)</enum><header>Limitation</header><text>Notwithstanding
any other provision of this section, an emerging growth company or any person
authorized to act on behalf of an emerging growth company may engage in oral or
written communications with potential investors that are qualified
institutional buyers or institutions that are accredited investors, as such
terms are respectively defined in section 230.144A and
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.501">section
230.501(a)</external-xref> of title 17, Code of Federal Regulations, or any
successor thereto, to determine whether such investors might have an interest
in a contemplated securities offering, either prior to or following the date of
filing of a registration statement with respect to such securities with the
Commission, subject to the requirement of subsection
(b)(2).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H30A24822D64849FB959CD1CBD8470197"><enum>(d)</enum><header>Post offering
communications</header><text>Neither the Commission nor any national securities
association registered under section 15A of the Securities Exchange Act of 1934
may adopt or maintain any rule or regulation prohibiting any broker, dealer, or
member of a national securities association from publishing or distributing any
research report or making a public appearance, with respect to the securities
of an emerging growth company, either—</text>
<paragraph id="H6BEF48CBB01841FB954ECB5057915DFF"><enum>(1)</enum><text>within any
prescribed period of time following the initial public offering date of the
emerging growth company; or</text>
</paragraph><paragraph id="H241F51581CBC4620AA435B3573F0BC70"><enum>(2)</enum><text>within any
prescribed period of time prior to the expiration date of any agreement between
the broker, dealer, or member of a national securities association and the
emerging growth company or its shareholders that restricts or prohibits the
sale of securities held by the emerging growth company or its shareholders
after the initial public offering date.</text>
</paragraph></subsection></section><section id="H83F12C0BFAA54EDE97F4B0DC5F6186C2"><enum>106.</enum><header>Other
matters</header>
<subsection id="HAD3AC2A8CA584541B8CB7ACC13EBCAC0"><enum>(a)</enum><header>Draft
registration statements</header><text display-inline="yes-display-inline">Section 6 of the Securities Act of 1933
(<external-xref legal-doc="usc" parsable-cite="usc/15/77f">15 U.S.C.
77f</external-xref>) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFD785D56311D49E987134346C43AD5D0" style="OLC">
<subsection id="HF08EDD31CE004680A8D28139C1D2B8B5"><enum>(e)</enum><header>Emerging growth
companies</header>
<paragraph id="HD969165311F842DE9D245C5A2EBEA3F2"><enum>(1)</enum><header>In
general</header><text>Any emerging growth company, prior to its initial public
offering date, may confidentially submit to the Commission a draft registration
statement, for confidential nonpublic review by the staff of the Commission
prior to public filing, provided that the initial confidential submission and
all amendments thereto shall be publicly filed with the Commission not later
than 21 days before the date on which the issuer conducts a road show, as such
term is defined in
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.433">section
230.433(h)(4)</external-xref> of title 17, Code of Federal Regulations, or any
successor thereto.</text>
</paragraph><paragraph id="HC9048FDA0C99453CABD6F00E5DAE30D8"><enum>(2)</enum><header>Confidentiality</header><text>Notwithstanding
any other provision of this title, the Commission shall not be compelled to
disclose any information provided to or obtained by the Commission pursuant to
this subsection. For purposes of
<external-xref legal-doc="usc" parsable-cite="usc/5/552">section
552</external-xref> of title 5, United States Code, this subsection shall be
considered a statute described in subsection (b)(3)(B) of such section 552.
Information described in or obtained pursuant to this subsection shall be
deemed to constitute confidential information for purposes of section 24(b)(2)
of the Securities Exchange Act of
1934.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H59C66F8F849745609789D15B34EF3888"><enum>(b)</enum><header>Tick
size</header><text display-inline="yes-display-inline">Section 11A(c) of the
Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78k-1">15 U.S.C. 78k–1(c)</external-xref>) is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7885A9D631DF437191556B8F51A7FBF1" style="OLC">
<paragraph id="HE91E2F738DA04C30A79B95D36272D294"><enum>(6)</enum><header>Tick
size</header>
<subparagraph id="H0249F935589E4779BB4C3974BE4C41C0"><enum>(A)</enum><header>Study and
report</header><text>The Commission shall conduct a study examining the
transition to trading and quoting securities in one penny increments, also
known as decimalization. The study shall examine the impact that decimalization
has had on the number of initial public offerings since its implementation
relative to the period before its implementation. The study shall also examine
the impact that this change has had on liquidity for small and middle
capitalization company securities and whether there is sufficient economic
incentive to support trading operations in these securities in penny
increments. Not later than 90 days after the date of enactment of this
paragraph, the Commission shall submit to Congress a report on the findings of
the study.</text>
</subparagraph><subparagraph id="HB842590088B947AC8B70DA0A93337BAE"><enum>(B)</enum><header>Designation</header><text display-inline="yes-display-inline">If the Commission determines that the
securities of emerging growth companies should be quoted and traded using a
minimum increment of greater than $0.01, the Commission may, by rule not later
than 180 days after the date of enactment of this paragraph, designate a
minimum increment for the securities of emerging growth companies that is
greater than $0.01 but less than $0.10 for use in all quoting and trading of
securities in any exchange or other execution
venue.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H4EA240EDDFCE4612B39069706C90078A"><enum>107.</enum><header>Opt-in right
for emerging growth companies</header>
<subsection id="HEDC26972BC274AC5A9658AEA2763529F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to an
exemption provided to emerging growth companies under this title, or an
amendment made by this title, an emerging growth company may choose to forgo
such exemption and instead comply with the requirements that apply to an issuer
that is not an emerging growth company.</text>
</subsection><subsection id="H0E16B2C1FE9E49739CEFD8AE727AA050"><enum>(b)</enum><header>Special
rule</header><text>Notwithstanding subsection (a), with respect to the
extension of time to comply with new or revised financial accounting standards
provided under section 7(a)(2)(B) of the Securities Act of 1933 and section
13(a) of the Securities Exchange Act of 1934, as added by section 102(b), if an
emerging growth company chooses to comply with such standards to the same
extent that a non-emerging growth company is required to comply with such
standards, the emerging growth company—</text>
<paragraph id="H9D5BA90A42444F03A36865529BFE1585"><enum>(1)</enum><text>must make such
choice at the time the company is first required to file a registration
statement, periodic report, or other report with the Commission under section
13 of the Securities Exchange Act of 1934 and notify the Securities and
Exchange Commission of such choice;</text>
</paragraph><paragraph id="H73656065A4144BA2BF49DEB493C80BAC"><enum>(2)</enum><text display-inline="yes-display-inline">may not select some standards to comply
with in such manner and not others, but must comply with all such standards to
the same extent that a non-emerging growth company is required to comply with
such standards; and</text>
</paragraph><paragraph id="H6B9B9B29F49044B485C7E74F452424B4"><enum>(3)</enum><text display-inline="yes-display-inline">must continue to comply with such standards
to the same extent that a non-emerging growth company is required to comply
with such standards for as long as the company remains an emerging growth
company.</text>
</paragraph></subsection></section><section id="HB4F71037582E4E7DB3ED9BEC1C46FEF5"><enum>108.</enum><header>Review of
Regulation S-K</header>
<subsection id="H2D16BBC2B6B144DD932A6283D8A41187"><enum>(a)</enum><header>Review</header><text>The
Securities and Exchange Commission shall conduct a review of its Regulation S-K
(17 CFR 229.10 et seq.) to—</text>
<paragraph id="H0D2A97AC850640ABAA8A9CF02B76A7AD"><enum>(1)</enum><text display-inline="yes-display-inline">comprehensively analyze the current
registration requirements of such regulation; and</text>
</paragraph><paragraph id="HC10CE0FBCBBC4230B21F5B544B97B313"><enum>(2)</enum><text>determine how such
requirements can be updated to modernize and simplify the registration process
and reduce the costs and other burdens associated with these requirements for
issuers who are emerging growth companies.</text>
</paragraph></subsection><subsection id="H907BCD8D4B8942E0B0A210A2933A3D00"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later the 180 days after the date of
enactment of this title, the Commission shall transmit to Congress a report of
the review conducted under subsection (a). The report shall include the
specific recommendations of the Commission on how to streamline the
registration process in order to make it more efficient and less burdensome for
the Commission and for prospective issuers who are emerging growth
companies.</text>
</subsection></section><enum>II</enum><header>Access to Capital
for Job Creators</header>
<section id="H20AE4B74D31247E7B363AE392BD0B1C4"><enum>201.</enum><header>Modification of
exemption</header>
<subsection id="H2EAD0F4AE3934C5D929ADDE547AB8E9C"><enum>(a)</enum><header>Modification of
Rules</header>
<paragraph id="H777C9BAD5B77419192178017DE9F1FA1"><enum>(1)</enum><text display-inline="yes-display-inline">Not later than 90 days after the date of
the enactment of this Act, the Securities and Exchange Commission shall revise
its rules issued in
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.506">section
230.506</external-xref> of title 17, Code of Federal Regulations, to provide
that the prohibition against general solicitation or general advertising
contained in section 230.502(c) of such title shall not apply to offers and
sales of securities made pursuant to section 230.506, provided that all
purchasers of the securities are accredited investors. Such rules shall require
the issuer to take reasonable steps to verify that purchasers of the securities
are accredited investors, using such methods as determined by the Commission.
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.506">Section
230.506</external-xref> of title 17, Code of Federal Regulations, as revised
pursuant to this section, shall continue to be treated as a regulation issued
under section 4(2) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C.
77d(2)</external-xref>).</text>
</paragraph><paragraph id="HB8AF74856B824666AB2D8DB46CACD992"><enum>(2)</enum><text display-inline="yes-display-inline">Not later than 90 days after the date of
enactment of this Act, the Securities and Exchange Commission shall revise
subsection (d)(1) of
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.144">section
230.144A</external-xref> of title 17, Code of Federal Regulations, to provide
that securities sold under such revised exemption may be offered to persons
other than qualified institutional buyers, including by means of general
solicitation or general advertising, provided that securities are sold only to
persons that the seller and any person acting on behalf of the seller
reasonably believe is a qualified institutional buyer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3A35852930B344A39089F5F17FF5F84C"><enum>(b)</enum><header>Consistency in
interpretation</header><text display-inline="yes-display-inline">Section 4 of
the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d</external-xref>) is amended—</text>
<paragraph commented="no" id="H10495EEABE134D59B17184994C0C9C3E"><enum>(1)</enum><text>by striking
<quote>The provisions of section 5</quote> and inserting <quote>(a) The
provisions of section 5</quote>; and</text>
</paragraph><paragraph commented="no" id="H45FB5BF781F04996B877B05AAA024EA3"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4FC63483F29C4584BAA37021D0C6E4D7" style="OLC">
<subsection commented="no" id="H4296025B7E8A448D89F45AE2295A5791"><enum>(b)</enum><text display-inline="yes-display-inline">Offers and sales exempt under
<external-xref legal-doc="regulation" parsable-cite="cfr/17/230.506">section
230.506</external-xref> of title 17, Code of Federal Regulations (as revised
pursuant to section 201 of the Jumpstart Our Business Startups Act) shall not
be deemed public offerings under the Federal securities laws as a result of
general advertising or general
solicitation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H6E3BCECA643E450FA95E33B866C0F6BA"><enum>(c)</enum><header>Explanation of
exemption</header><text display-inline="yes-display-inline">Section 4 of the
Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d</external-xref>) is amended—</text>
<paragraph commented="no" id="H4AC60228BD4943E6A5A7BBB02E168A02"><enum>(1)</enum><text>by striking
<quote>The provisions of section 5</quote> and inserting <quote>(a) The
provisions of section 5</quote>; and</text>
</paragraph><paragraph commented="no" id="H9160BB384AD649CDA8104601D2498B11"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7919BF0332244D5BB209BBF288D386A8" style="OLC">
<subsection commented="no" id="H6842E6199B4F466C86367547ED04BD82"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H27DE144D6C4F4AF59DF9E74879C2265A"><enum>(1)</enum><text>With respect to
securities offered and sold in compliance with Rule 506 of Regulation D under
this Act, no person who meets the conditions set forth in paragraph (2) shall
be subject to registration as a broker or dealer pursuant to section 15(a)(1)
of this title, solely because—</text>
<subparagraph commented="no" id="H59D1AD77A9A741C0A0906E4678AF4B4B"><enum>(A)</enum><text display-inline="yes-display-inline">that person maintains a platform or
mechanism that permits the offer, sale, purchase, or negotiation of or with
respect to securities, or permits general solicitations, general
advertisements, or similar or related activities by issuers of such securities,
whether online, in person, or through any other means;</text>
</subparagraph><subparagraph commented="no" id="HB4D52CC3944A4563932D0FFA00D0BC18"><enum>(B)</enum><text>that person or any
person associated with that person co-invests in such securities; or</text>
</subparagraph><subparagraph commented="no" id="H520671E76B79414BB374A24088E0EB52"><enum>(C)</enum><text display-inline="yes-display-inline">that person or any person associated with
that person provides ancillary services with respect to such securities.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA0556D5535514DA8AE534DAA2AB6C023" indent="up1"><enum>(2)</enum><text>The exemption provided in paragraph
(1) shall apply to any person described in such paragraph if—</text>
<subparagraph commented="no" id="H766DDEE16F424C61840A5B680D8FA80C"><enum>(A)</enum><text>such person and each person associated
with that person receives no compensation in connection with the purchase or
sale of such security;</text>
</subparagraph><subparagraph commented="no" id="H5B900BEEF0B443F3B6203B249DBF3AFE"><enum>(B)</enum><text>such person and each person associated
with that person does not have possession of customer funds or securities in
connection with the purchase or sale of such security; and</text>
</subparagraph><subparagraph commented="no" id="H968008E8DC9C4162BB41992B294F9FB3"><enum>(C)</enum><text>such person is not subject to a
statutory disqualification as defined in section 3(a)(39) of this title and
does not have any person associated with that person subject to such a
statutory disqualification.</text>
</subparagraph></paragraph><paragraph commented="no" id="HFAC618C4BA3A47F0B74D960AB6FA3C40" indent="up1"><enum>(3)</enum><text>For the purposes of this subsection,
the term <quote>ancillary services</quote> means—</text>
<subparagraph commented="no" id="HD37FF40AB1FC4E58BA8F7F81D3B89994"><enum>(A)</enum><text>the provision of due diligence
services, in connection with the offer, sale, purchase, or negotiation of such
security, so long as such services do not include, for separate compensation,
investment advice or recommendations to issuers or investors; and</text>
</subparagraph><subparagraph commented="no" id="H94AAA23C17B4485A90A7631D68508CC5"><enum>(B)</enum><text>the provision of standardized
documents to the issuers and investors, so long as such person or entity does
not negotiate the terms of the issuance for and on behalf of third parties and
issuers are not required to use the standardized documents as a condition of
using the
service.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>III</enum><header>Entrepreneur
Access to Capital</header>
<section id="H0DABF03FA4154C06A46D5FB67E47DC97"><enum>301.</enum><header>Crowdfunding
exemption</header>
<subsection id="HBD459920FC8F44D49F5E75335E7A4B91"><enum>(a)</enum><header>Securities Act
of 1933</header><text display-inline="yes-display-inline">Section 4 of the
Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C. 77d</external-xref>) (as amended by
section 201) is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDB781397F5FD4E13865EC2643AA230C0" style="OLC">
<paragraph id="HB4580D7D66B34EA79FA21B737EA27D97"><enum>(6)</enum><text display-inline="yes-display-inline">transactions involving the offer or sale of
securities by an issuer, provided that—</text>
<subparagraph id="HC9931A277FB94A5BB98FCB0025BFF8A0"><enum>(A)</enum><text display-inline="yes-display-inline">the aggregate amount sold within the
previous 12-month period in reliance upon this exemption is—</text>
<clause id="HCC51DC8FC4744078AF17CBA63294256E"><enum>(i)</enum><text display-inline="yes-display-inline">$1,000,000, as such amount is adjusted by
the Commission to reflect the annual change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics, or less; or</text>
</clause><clause id="HD16EAA08BA954C1F87AD5020D407632E"><enum>(ii)</enum><text display-inline="yes-display-inline">if the issuer provides potential investors
with audited financial statements, $2,000,000, as such amount is adjusted by
the Commission to reflect the annual change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics, or less;</text>
</clause></subparagraph><subparagraph id="HF5FD7F1CC50E420BA8D6B7EBD6AC1C88"><enum>(B)</enum><text display-inline="yes-display-inline">the aggregate amount sold to any investor
in reliance on this exemption within the previous 12-month period does not
exceed the lesser of—</text>
<clause id="H597EF179225B41A08322DC977BACE902"><enum>(i)</enum><text display-inline="yes-display-inline">$10,000, as such amount is adjusted by the
Commission to reflect the annual change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics; and</text>
</clause><clause id="HBAC29B769E9245E89699F4B5621C5FDE"><enum>(ii)</enum><text display-inline="yes-display-inline">10 percent of such investor’s annual
income;</text>
</clause></subparagraph><subparagraph id="HDF151B79AA1045ED8237002FEAB78162"><enum>(C)</enum><text>in the case of a
transaction involving an intermediary between the issuer and the investor, such
intermediary complies with the requirements under section 4A(a); and</text>
</subparagraph><subparagraph id="H33EABEF4E5A54C38949D6A7C1BC72DDE"><enum>(D)</enum><text>in the case of a
transaction not involving an intermediary between the issuer and the investor,
the issuer complies with the requirements under section
4A(b).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H79C61DA6E3FE4369A5CD15A0CD23844F"><enum>(b)</enum><header>Requirements to
qualify for crowdfunding exemption</header><text>The Securities Act of 1933 is
amended by inserting after section 4 the following:</text>
<quoted-block display-inline="no-display-inline" id="HB6DEF18389904052B718AF7AF808FF75" style="OLC">
<section id="H3E018A39965D476EA829AD6DDC2A5133"><enum>4A.</enum><header>Requirements
with respect to certain small transactions</header>
<subsection id="H6B0D95E71B15491BB455080460082DE6"><enum>(a)</enum><header>Requirements on
intermediaries</header><text display-inline="yes-display-inline">For purposes
of section 4(6), a person acting as an intermediary in a transaction involving
the offer or sale of securities shall comply with the requirements of this
subsection if the intermediary—</text>
<paragraph id="H2A36578B7C5546AD9931A58201DF8B7B"><enum>(1)</enum><text display-inline="yes-display-inline">warns investors, including on the
intermediary’s website used for the offer and sale of such securities, of the
speculative nature generally applicable to investments in startups, emerging
businesses, and small issuers, including risks in the secondary market related
to illiquidity;</text>
</paragraph><paragraph id="H63827781CE2E4B3A84275AEC21EB358B"><enum>(2)</enum><text>warns investors
that they are subject to the restriction on sales requirement described under
subsection (e);</text>
</paragraph><paragraph id="H14611638424244A083A5465A3664B30E"><enum>(3)</enum><text>takes reasonable
measures to reduce the risk of fraud with respect to such transaction;</text>
</paragraph><paragraph id="HBEF8E223360D4F689B7A0C7865412C85"><enum>(4)</enum><text display-inline="yes-display-inline">provides the Commission with the
intermediary’s physical address, website address, and the names of the
intermediary and employees of the intermediary, and keep such information
up-to-date;</text>
</paragraph><paragraph id="H3EAC7001C7DE4C109C19D8FF176E22F3"><enum>(5)</enum><text display-inline="yes-display-inline">provides the Commission with continuous
investor-level access to the intermediary’s website;</text>
</paragraph><paragraph id="H824688C7C1E44976991E860780A92A5C"><enum>(6)</enum><text>requires each
potential investor to answer questions demonstrating—</text>
<subparagraph id="HE99D816552CA4D9ABE0771699780445A"><enum>(A)</enum><text display-inline="yes-display-inline">an understanding of the level of risk
generally applicable to investments in startups, emerging businesses, and small
issuers;</text>
</subparagraph><subparagraph id="H6E0FD5FE063C413AABC6C3AF90B25AEB"><enum>(B)</enum><text display-inline="yes-display-inline">an understanding of the risk of
illiquidity; and</text>
</subparagraph><subparagraph id="H56A2169EAEF44B618D75368F77B51E02"><enum>(C)</enum><text display-inline="yes-display-inline">such other areas as the Commission may
determine appropriate by rule or regulation;</text>
</subparagraph></paragraph><paragraph id="H2E301792D0BD4CECAD78C3F65B5445D8"><enum>(7)</enum><text display-inline="yes-display-inline">requires the issuer to state a target
offering amount and a deadline to reach the target offering amount and ensure
the third party custodian described under paragraph (10) withholds offering
proceeds until aggregate capital raised from investors other than the issuer is
no less than 60 percent of the target offering amount;</text>
</paragraph><paragraph id="H2785932B1128406EB6B21E87CE2B0AC1"><enum>(8)</enum><text display-inline="yes-display-inline">carries out a background check on the
issuer’s principals;</text>
</paragraph><paragraph id="HCD9C4D8BCCE54F1789331D3BC2701758"><enum>(9)</enum><text display-inline="yes-display-inline">provides the Commission and potential
investors with notice of the offering, not later than the first day securities
are offered to potential investors, including—</text>
<subparagraph id="HA47712F6EFF34D179D78D5DDD2123F57"><enum>(A)</enum><text>the issuer’s name,
legal status, physical address, and website address;</text>
</subparagraph><subparagraph id="H654A927EAD2242FEA0FA20BA18EBA9E1"><enum>(B)</enum><text>the names of the
issuer’s principals;</text>
</subparagraph><subparagraph id="H6ED81E8C9BD6400E8C8DA3A3D6EFCA4C"><enum>(C)</enum><text display-inline="yes-display-inline">the stated purpose and intended use of the
proceeds of the offering sought by the issuer; and</text>
</subparagraph><subparagraph id="HAAA911221C414898A7F52610DEF16614"><enum>(D)</enum><text display-inline="yes-display-inline">the target offering amount and the deadline
to reach the target offering amount;</text>
</subparagraph></paragraph><paragraph id="H337E84FC613140A989F1AE5BB9FD2D52"><enum>(10)</enum><text display-inline="yes-display-inline">outsources cash-management functions to a
qualified third party custodian, such as a broker or dealer registered under
section 15(b)(1) of the Securities Exchange Act of 1934 or an insured
depository institution;</text>
</paragraph><paragraph id="HF4AB6B332B194C3EA57C2F9F95F8EB4D"><enum>(11)</enum><text>maintains such
books and records as the Commission determines appropriate;</text>
</paragraph><paragraph id="H2B25E7C406714E83A886DBF176EAA706"><enum>(12)</enum><text>makes available
on the intermediary’s website a method of communication that permits the issuer
and investors to communicate with one another;</text>
</paragraph><paragraph id="H7D0E5D601A5C4D67AD6527F3A6503D4F"><enum>(13)</enum><text display-inline="yes-display-inline">provides the Commission with a notice upon
completion of the offering, which shall include the aggregate offering amount
and the number of purchasers; and</text>
</paragraph><paragraph id="H0A8E4EBBA85344C2A652F0138D2BDDCF"><enum>(14)</enum><text>does not offer
investment advice.</text>
</paragraph></subsection><subsection id="H7EDFF588C5FE4FA48F35CAC0FF9D8BBD"><enum>(b)</enum><header>Requirements on
issuers if no intermediary</header><text display-inline="yes-display-inline">For purposes of section 4(6), an issuer who
offers or sells securities without an intermediary shall comply with the
requirements of this subsection if the issuer—</text>
<paragraph id="H46E3420E4921424E84C576AC2ABB7028"><enum>(1)</enum><text>warns investors,
including on the issuer’s website, of the speculative nature generally
applicable to investments in startups, emerging businesses, and small issuers,
including risks in the secondary market related to illiquidity;</text>
</paragraph><paragraph id="HD0049387F29E4CF1BF2B925FC3318A54"><enum>(2)</enum><text>warns investors
that they are subject to the restriction on sales requirement described under
subsection (e);</text>
</paragraph><paragraph id="H146563022A3D41E988D5C3E1E5486129"><enum>(3)</enum><text>takes reasonable
measures to reduce the risk of fraud with respect to such transaction;</text>
</paragraph><paragraph id="H870DB8150B174E75B90A12F9E5189715"><enum>(4)</enum><text>provides the
Commission with the issuer’s physical address, website address, and the names
of the principals and employees of the issuers, and keeps such information
up-to-date;</text>
</paragraph><paragraph id="H46299366A19746DEA4B6A21A2699B27E"><enum>(5)</enum><text>provides the
Commission with continuous investor-level access to the issuer’s
website;</text>
</paragraph><paragraph id="HD2620C9001D44C248A437A9139CC9606"><enum>(6)</enum><text>requires each
potential investor to answer questions demonstrating—</text>
<subparagraph id="HB4FE8CE6CA7F4D3EBA37481C418C847F"><enum>(A)</enum><text display-inline="yes-display-inline">an understanding of the level of risk
generally applicable to investments in startups, emerging businesses, and small
issuers;</text>
</subparagraph><subparagraph id="H833EFB75BF1F4C3F9BFF282E23F45430"><enum>(B)</enum><text display-inline="yes-display-inline">an understanding of the risk of
illiquidity; and</text>
</subparagraph><subparagraph id="H9F88A14D92964514B47FA6EE4681FE53"><enum>(C)</enum><text display-inline="yes-display-inline">such other areas as the Commission may
determine appropriate by rule or regulation;</text>
</subparagraph></paragraph><paragraph id="H4360EEF13122452D8BACBAAE3E962A77"><enum>(7)</enum><text display-inline="yes-display-inline">states a target offering amount and ensures
that the third party custodian described under paragraph (9) withholds offering
proceeds until the aggregate capital raised from investors other than the
issuer is no less than 60 percent of the target offering amount;</text>
</paragraph><paragraph id="HBA4D4ED31DAA4634AA8A87E78DC02424"><enum>(8)</enum><text display-inline="yes-display-inline">provides the Commission with notice of the
offering, not later than the first day securities are offered to potential
investors, including—</text>
<subparagraph id="H429C42DBDC08404A94074FF5E6971F7A"><enum>(A)</enum><text display-inline="yes-display-inline">the stated purpose and intended use of the
proceeds of the offering sought by the issuer; and</text>
</subparagraph><subparagraph id="HBC8FC745090843A4A3A33251DA690913"><enum>(B)</enum><text display-inline="yes-display-inline">the target offering amount and the deadline
to reach the target offering amount;</text>
</subparagraph></paragraph><paragraph id="HC6E01B5E44524878B3406EC17A24BB9A"><enum>(9)</enum><text display-inline="yes-display-inline">outsources cash-management functions to a
qualified third party custodian, such as a broker or dealer registered under
section 15(b)(1) of the Securities Exchange Act of 1934 or an insured
depository institution;</text>
</paragraph><paragraph id="HDE7D32F7F1004797A53B9F395D67363B"><enum>(10)</enum><text>maintains such
books and records as the Commission determines appropriate;</text>
</paragraph><paragraph id="HECB4A2FB83C047738AD85494D93E6BF1"><enum>(11)</enum><text>makes available
on the issuer’s website a method of communication that permits the issuer and
investors to communicate with one another;</text>
</paragraph><paragraph id="HB3CE305F7E324C2B9AC31029BEEC301A"><enum>(12)</enum><text>does not offer
investment advice;</text>
</paragraph><paragraph id="H96E231EC403B43CE94AD50E0BC3214C3"><enum>(13)</enum><text display-inline="yes-display-inline">provides the Commission with a notice upon
completion of the offering, which shall include the aggregate offering amount
and the number of purchasers; and</text>
</paragraph><paragraph id="H8AAD2465435147E09BEFDE19B8F1A233"><enum>(14)</enum><text>discloses to
potential investors, on the issuer’s website, that the issuer has an interest
in the issuance.</text>
</paragraph></subsection><subsection id="HCC9C8976C8AC46B99A7E444715A52CBA"><enum>(c)</enum><header>Verification of
income</header><text display-inline="yes-display-inline">For purposes of
section 4(6), an issuer or intermediary may rely on certifications as to annual
income provided by the person to whom the securities are sold to verify the
investor’s income.</text>
</subsection><subsection id="H057BE4B22C3E49B0AF7B59B8371B9EE4"><enum>(d)</enum><header>Information
Available to States</header><text display-inline="yes-display-inline">The
Commission shall make the notices described under subsections (a)(9), (a)(13),
(b)(8), and (b)(13) and the information described under subsections (a)(4) and
(b)(4) available to the States.</text>
</subsection><subsection id="HD68071F7C56D41B69555472751982B95"><enum>(e)</enum><header>Restriction on
sales</header><text display-inline="yes-display-inline">With respect to a
transaction involving the issuance of securities described under section 4(6),
a purchaser may not transfer such securities during the 1-year period beginning
on the date of purchase, unless such securities are sold to—</text>
<paragraph id="HC0A416D4491E4EB686298C28C79CD571"><enum>(1)</enum><text>the issuer of such
securities; or</text>
</paragraph><paragraph id="HBFF6B0E02A5E4620BCD5652910FE0549"><enum>(2)</enum><text>an accredited
investor.</text>
</paragraph></subsection><subsection id="H6CA7B8464614455D8537E5E2DDE425C3"><enum>(f)</enum><header>Construction</header>
<paragraph id="H03F60349B5BF4F2BA7F77AC86D066312"><enum>(1)</enum><header>No registration
as broker</header><text display-inline="yes-display-inline">With respect to a
transaction described under section 4(6) involving an intermediary, such
intermediary shall not be required to register as a broker under section
15(a)(1) of the Securities Exchange Act of 1934 solely by reason of
participation in such transaction.</text>
</paragraph><paragraph id="HAC666BFAE5D9455F8800595D628EEF64"><enum>(2)</enum><header>No preclusion of
other capital raising</header><text>Nothing in this section or section 4(6)
shall be construed as preventing an issuer from raising capital through methods
not described under section
4(6).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HA694748AA5BF4A77ACAF071F38641ED5"><enum>(c)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange Commission shall issue
such rules as may be necessary to carry out section 4A of the Securities Act of
1933. In issuing such rules, the Commission shall consider the costs and
benefits of the action.</text>
</subsection><subsection id="HB175A1B71B2841BE99B1F0B8FF770FCB"><enum>(d)</enum><header>Disqualification</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange Commission shall by rule
or regulation establish disqualification provisions under which an issuer shall
not be eligible to utilize the exemption under section 4(6) of the Securities
Act of 1933 based on the disciplinary history of the issuer or its
predecessors, affiliates, officers, directors, or persons fulfilling similar
roles. The Commission shall also establish disqualification provisions under
which an intermediary shall not be eligible to act as an intermediary in
connection with an offering utilizing the exemption under section 4(6) of the
Securities Act of 1933 based on the disciplinary history of the intermediary or
its predecessors, affiliates, officers, directors, or persons fulfilling
similar roles. Such provisions shall be substantially similar to the
disqualification provisions contained in the regulations adopted in accordance
with section 926 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C.
77d</external-xref> note).</text>
</subsection></section><section commented="no" id="H37B104FCEDD149EC83F3176AB4D14A06"><enum>302.</enum><header>Exclusion of
crowdfunding investors from shareholder cap</header><text display-inline="no-display-inline">Section 12(g)(5) of the Securities Exchange
Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15
U.S.C. 78l(g)(5)</external-xref>) is amended—</text>
<paragraph commented="no" id="H82DFA242676A41FF8A5F8F827B5FED15"><enum>(1)</enum><text>by striking
<quote>(5) For the purposes</quote> and inserting:</text>
<quoted-block display-inline="no-display-inline" id="HFDEF5789D3894316AB5679F0811F453F" style="OLC">
<paragraph commented="no" id="HB5D0F70610074039B37DB9DFF2A60D1C"><enum>(5)</enum><header>Definitions</header>
<subparagraph commented="no" id="HF2885D7D72C04502A49EF951A5CA29BD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For the
purposes</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HFCBBB92D231947E08178DF953255F832"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HFF195B7BECB64A5AA05C376333DAF785" style="OLC">
<subparagraph commented="no" id="HDBB0D28A991B42CEA4504A2E1CCFCED7"><enum>(B)</enum><header>Exclusion for
persons holding certain securities</header><text display-inline="yes-display-inline">For purposes of this subsection, securities
held by persons who purchase such securities in transactions described under
section 4(6) of the Securities Act of 1933 shall not be deemed to be
<quote>held of
record</quote>.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H26757827E2D54BE1BBEA369952B896C8"><enum>303.</enum><header>Preemption of
State law</header>
<subsection id="H64FD10BF4A1241A9A1D2385F5F212D46"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 18(b)(4) of
the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77r">15 U.S.C. 77r(b)(4)</external-xref>) is
amended—</text>
<paragraph id="H409BEB873D4E4FEC98FD7D63F524A967"><enum>(1)</enum><text>by redesignating
subparagraphs (C) and (D) as subparagraphs (E) and (F), respectively;
and</text>
</paragraph><paragraph id="H7C2B72E74FFE4E1B97478B57E95ADA0B"><enum>(2)</enum><text>by inserting after
subparagraph (B) the following:</text>
<quoted-block display-inline="no-display-inline" id="HF6CA5B17EC494720B58C0EE957412995" style="OLC">
<subparagraph id="H6921D4A5063A41D09E0BFDF504C3CB36"><enum>(C)</enum><text display-inline="yes-display-inline">section
4(6);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF271B330271F4D5997549064211C30F0"><enum>(b)</enum><header>Clarification of
the preservation of State enforcement authority</header>
<paragraph id="HC675F375E1874FE5A41FD887F911B6BB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The amendments made
by subsection (a) relate solely to State registration, documentation, and
offering requirements, as described under section 18(a) of Securities Act of
1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77r">15 U.S.C.
77r(a)</external-xref>), and shall have no impact or limitation on other State
authority to take enforcement action with regard to an issuer, intermediary, or
any other person or entity using the exemption from registration provided by
section 4(6) of such Act.</text>
</paragraph><paragraph id="HC89D21A40C88474B85225F0A54C50D09"><enum>(2)</enum><header>Clarification of
State jurisdiction over unlawful conduct of intermediaries, issuers, and
custodians</header><text>Section 18(c)(1) of the Securities Act of 1933 is
amended by striking <quote>with respect to fraud or deceit, or unlawful conduct
by a broker or dealer, in connection with securities or securities
transactions.</quote> and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="H85E339FC45D149E19BD8C3EC01E92357" style="OLC">
<text>, in connection with securities or securities
transactions, with respect to—</text><subparagraph id="HD69C5EE2CE9D4F3BA22D748E0B143C6E"><enum>(A)</enum><text display-inline="yes-display-inline">fraud or deceit;</text>
</subparagraph><subparagraph id="HA685BB390CD2482882441D72F1D39A7C"><enum>(B)</enum><text>unlawful conduct
by a broker or dealer; and</text>
</subparagraph><subparagraph id="HF1073013470647C8BCCC3EAC1B763006"><enum>(C)</enum><text>with respect to a
transaction described under section 4(6), unlawful conduct by an intermediary,
issuer, or
custodian.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>IV</enum><header>Small Company
Capital Formation</header>
<section id="HE47BFB212B4C4DA1BA9E45288C185602" section-type="subsequent-section"><enum>401.</enum><header>Authority to exempt
certain securities</header>
<subsection id="H1EA7A555536A4AE696629D16E6B8550A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 3(b) of the
Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77c">15 U.S.C. 77c(b)</external-xref>) is amended—</text>
<paragraph id="H3FF0F95490D147ED8E1200E97C136893"><enum>(1)</enum><text>by striking
<quote>(b) The Commission</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HAB33C38D5EDA436895C160205A5C82CF" style="OLC">
<subsection id="H8859993DA44C4F2B8704E7EF7A5920A0"><enum>(b)</enum><header>Additional
exemptions</header>
<paragraph id="H7B4DA670D5294BDCAB7670D828A5B074"><enum>(1)</enum><header>Small issues
exemptive authority</header><text display-inline="yes-display-inline">The
Commission</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HF2D6671C1D8B42C180E18D34CEA5B26C"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1156A5E71B21494F89B39392665A89A8" style="OLC">
<paragraph id="H5F1E7961537B473194D620ECCDB15E3E"><enum>(2)</enum><header>Additional
issues</header><text display-inline="yes-display-inline">The Commission shall
by rule or regulation add a class of securities to the securities exempted
pursuant to this section in accordance with the following terms and
conditions:</text>
<subparagraph id="H5559583543874218B3190D617FB9B5D6"><enum>(A)</enum><text display-inline="yes-display-inline">The aggregate offering amount of all
securities offered and sold within the prior 12-month period in reliance on the
exemption added in accordance with this paragraph shall not exceed
$50,000,000.</text>
</subparagraph><subparagraph id="H44580BEBB6894C61974E18F9DC5A6FE5"><enum>(B)</enum><text>The securities may
be offered and sold publicly.</text>
</subparagraph><subparagraph id="HA41B41703A4047D29A63E0B220046BCF"><enum>(C)</enum><text>The securities
shall not be restricted securities within the meaning of the Federal securities
laws and the regulations promulgated thereunder.</text>
</subparagraph><subparagraph id="H9F15C0652ADF4FC98F382C4FA010381C"><enum>(D)</enum><text display-inline="yes-display-inline">The civil liability provision in section
12(a)(2) shall apply to any person offering or selling such securities.</text>
</subparagraph><subparagraph id="H9AD6B0A2828843899A0E0200D8EF3DD2"><enum>(E)</enum><text>The issuer may
solicit interest in the offering prior to filing any offering statement, on
such terms and conditions as the Commission may prescribe in the public
interest or for the protection of investors.</text>
</subparagraph><subparagraph id="H03608FA267FE4FC286A63B28482A0D00"><enum>(F)</enum><text>The Commission
shall require the issuer to file audited financial statements with the
Commission annually.</text>
</subparagraph><subparagraph id="H3D4AC9F34DE94CE2849E5D29C38A28FE"><enum>(G)</enum><text>Such other terms,
conditions, or requirements as the Commission may determine necessary in the
public interest and for the protection of investors, which may include—</text>
<clause id="HC4513C07902445ADBD703DA1B176654B"><enum>(i)</enum><text>a
requirement that the issuer prepare and electronically file with the Commission
and distribute to prospective investors an offering statement, and any related
documents, in such form and with such content as prescribed by the Commission,
including audited financial statements, a description of the issuer’s business
operations, its financial condition, its corporate governance principles, its
use of investor funds, and other appropriate matters; and</text>
</clause><clause id="HC4BC699AEC3D4097AF91862463C34F5D"><enum>(ii)</enum><text>disqualification
provisions under which the exemption shall not be available to the issuer or
its predecessors, affiliates, officers, directors, underwriters, or other
related persons, which shall be substantially similar to the disqualification
provisions contained in the regulations adopted in accordance with section 926
of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(<external-xref legal-doc="usc" parsable-cite="usc/15/77d">15 U.S.C.
77d</external-xref> note).</text>
</clause></subparagraph></paragraph><paragraph id="H59C4F94913A7439A98F961A40BB8D8ED"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">Only the following types of securities may
be exempted under a rule or regulation adopted pursuant to paragraph (2):
equity securities, debt securities, and debt securities convertible or
exchangeable to equity interests, including any guarantees of such
securities.</text>
</paragraph><paragraph id="HF4177017D83B474DA903039DC2B4C239"><enum>(4)</enum><header>Periodic
disclosures</header><text display-inline="yes-display-inline">Upon such terms
and conditions as the Commission determines necessary in the public interest
and for the protection of investors, the Commission by rule or regulation may
require an issuer of a class of securities exempted under paragraph (2) to make
available to investors and file with the Commission periodic disclosures
regarding the issuer, its business operations, its financial condition, its
corporate governance principles, its use of investor funds, and other
appropriate matters, and also may provide for the suspension and termination of
such a requirement with respect to that issuer.</text>
</paragraph><paragraph id="H89B44B07BD2F4EE89383620D2F71BBD5"><enum>(5)</enum><header>Adjustment</header><text>Not
later than 2 years after the date of enactment of the Small Company Capital
Formation Act of 2011 and every 2 years thereafter, the Commission shall review
the offering amount limitation described in paragraph (2)(A) and shall increase
such amount as the Commission determines appropriate. If the Commission
determines not to increase such amount, it shall report to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on its reasons for not
increasing the
amount.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H72DFA10C3F4842D5B0E3050FACACCC72"><enum>(b)</enum><header>Treatment as
covered securities for purposes of NSMIA</header><text>Section 18(b)(4) of the
Securities Act of 1933 (as amended by section 303) (<external-xref legal-doc="usc" parsable-cite="usc/15/77r">15 U.S.C. 77r(b)(4)</external-xref>)
is further amended by inserting after subparagraph (C) (as added by such
section) the following:</text>
<quoted-block display-inline="no-display-inline" id="H3726957F8A5D411287321385D1274213" style="OLC">
<subparagraph commented="no" id="HA0B2A2640CD34325A9182AAA59080BFD"><enum>(D)</enum><text display-inline="yes-display-inline">a rule or regulation adopted pursuant to
section 3(b)(2) and such security is—</text>
<clause commented="no" id="H74CE0924508741BC89D0C4EF29951284"><enum>(i)</enum><text display-inline="yes-display-inline">offered or sold on a national securities
exchange; or</text>
</clause><clause commented="no" id="HC90227B8AC6F438D83885283A54D7E05"><enum>(ii)</enum><text>offered or sold
to a qualified purchaser, as defined by the Commission pursuant to paragraph
(3) with respect to that purchase or
sale;</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCFC0DA7F325C4F44B26C4A920743BDC0"><enum>(c)</enum><header>Conforming
amendment</header><text>Section 4(5) of the Securities Act of 1933 is amended
by striking <quote>section 3(b)</quote> and inserting <quote>section
3(b)(1)</quote>.</text>
</subsection></section><section id="H40A9DCE64A2B45D4A37AE5BA787BF38B"><enum>402.</enum><header>Study on the
impact of State Blue Sky laws on Regulation A offerings</header><text display-inline="no-display-inline">The Comptroller General shall conduct a
study on the impact of State laws regulating securities offerings, or
<quote>Blue Sky laws</quote>, on offerings made under Regulation A (17 CFR
230.251 et seq.). The Comptroller General shall transmit a report on the
findings of the study to the Committee on Financial Services of the House of
Representatives, and the Committee on Banking, Housing, and Urban Affairs of
the Senate not later than 3 months after the date of enactment of this
Act.</text>
</section><enum>V</enum><header>Private Company
Flexibility and Growth</header>
<section commented="no" id="H9274444768FD4077878886C2ADD75A61"><enum>501.</enum><header>Threshold for
registration</header><text display-inline="no-display-inline">Section
12(g)(1)(A) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15 U.S.C.
78l(g)(1)(A)</external-xref>) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2A45863758BF41309D88F69B3EB8F745" style="OLC">
<subparagraph commented="no" id="H356E4924B2B4441D8CDD241FD3A3E9DD" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">within 120 days after the last day of its
first fiscal year ended on which the issuer has total assets exceeding
$10,000,000 and a class of equity security (other than an exempted security)
held of record by either—</text>
<clause id="H769A38DD31474E1FA29D6460C5AC2AB0" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">2,000 persons, or</text>
</clause><clause id="H7AE3B1AE4905461E98FC722EF5D561E4" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">500 persons who are not accredited
investors (as such term is defined by the Commission),
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H11F75B142A964CEAB747D4041F9C056C"><enum>502.</enum><header>Employees</header><text display-inline="no-display-inline">Section 12(g)(5) of the Securities Exchange
Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15
U.S.C. 78l(g)(5)</external-xref>), as amended by section 302, is amended in
subparagraph (A) by adding at the end the following: <quote>For purposes of
determining whether an issuer is required to register a security with the
Commission pursuant to paragraph (1), the definition of `held of record' shall
not include securities held by persons who received the securities pursuant to
an employee compensation plan in transactions exempted from the registration
requirements of section 5 of the Securities Act of 1933.</quote>.</text>
</section><section commented="no" id="H7CAE0C04AD0D4BEBA29898474318BAD9"><enum>503.</enum><header>Commission
rulemaking</header><text display-inline="no-display-inline">The Securities and
Exchange Commission shall revise the definition of <quote>held of
record</quote> pursuant to section 12(g)(5) of the Securities Exchange Act of
1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15 U.S.C.
78l(g)(5)</external-xref>) to implement the amendment made by section 502. The
Commission shall also adopt safe harbor provisions that issuers can follow when
determining whether holders of their securities received the securities
pursuant to an employee compensation plan in transactions that were exempt from
the registration requirements of section 5 of the Securities Act of
1933.</text>
</section><section id="H761851C1CA774017B26089A56BB86AEA"><enum>504.</enum><header>Commission
study of enforcement authority under Rule 12g5–1</header><text display-inline="no-display-inline">The Securities and Exchange Commission shall
examine its authority to enforce Rule 12g5–1 to determine if new enforcement
tools are needed to enforce the anti-evasion provision contained in subsection
(b)(3) of the rule, and shall, not later than 120 days after the date of
enactment of this Act transmit its recommendations to Congress.</text>
</section><enum>VI</enum><header>Capital
Expansion</header>
<section commented="no" id="H73532D5450B64D80B12B558B4BA88A4B" section-type="subsequent-section"><enum>601.</enum><header>Shareholder
threshold for registration</header>
<subsection commented="no" id="H318FAD29B1BE4F0AAEF9A8BBB156AA34"><enum>(a)</enum><header>Amendments to
section 12 of the Securities Exchange Act of 1934</header><text>Section 12(g)
of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78l">15 U.S.C. 78l(g)</external-xref>) is further
amended—</text>
<paragraph commented="no" id="H2134DB249C254B66A99E400D97F48896"><enum>(1)</enum><text>in paragraph (1),
by amending subparagraph (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4993D0B223214E529E1861605D8DA2EA" style="OLC">
<subparagraph commented="no" id="H2C1793011D0C49C7BD24A22403036379" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">in
the case of an issuer that is a bank or a bank holding company, as such term is
defined in section 2 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841</external-xref>),
not later than 120 days after the last day of its first fiscal year ended after
the effective date of this subsection, on which the issuer has total assets
exceeding $10,000,000 and a class of equity security (other than an exempted
security) held of record by 2,000 or more
persons,</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H54E5370EBDBF4021BACFDE0A1BD3756E"><enum>(2)</enum><text>in paragraph (4),
by striking <quote>three hundred</quote> and inserting <quote>300 persons, or,
in the case of a bank or a bank holding company, as such term is defined in
section 2 of the Bank Holding Company Act of 1956 (<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C. 1841</external-xref>),
1,200 persons</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H8C8E799DC17B45BFB88DF6BBB70D2240"><enum>(b)</enum><header>Amendments to
section 15 of the Securities Exchange Act of 1934</header><text>Section 15(d)
of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o">15 U.S.C. 78o(d)</external-xref>) is amended, in the
third sentence, by striking <quote>three hundred</quote> and inserting
<quote>300 persons, or, in the case of bank or a bank holding company, as such
term is defined in section 2 of the Bank Holding Company Act of 1956
(<external-xref legal-doc="usc" parsable-cite="usc/12/1841">12 U.S.C.
1841</external-xref>), 1,200 persons</quote>.</text>
</subsection></section><section commented="no" id="H999C2A612151493CBC4E9DDE08BD7F7A"><enum>602.</enum><header>Rulemaking</header><text display-inline="no-display-inline">Not later than 1 year after the date of
enactment of this Act, the Securities and Exchange Commission shall issue final
regulations to implement this title and the amendments made by this
title.</text>
</section><enum>VII</enum><header>Outreach on
changes to the law</header>
<section id="HA5DB593E72F947BD8A8A33F8D380DC77"><enum>701.</enum><header>Outreach by the
Commission</header><text display-inline="no-display-inline">The Securities and
Exchange Commission shall provide online information and conduct outreach to
inform small and medium sized businesses, women owned businesses, veteran owned
businesses, and minority owned businesses of the changes made by this
Act.</text>
</section>
Passed the House of
Representatives March 8, 2012.
Karen L. Haas,
Clerk.
March 13, 2012
Read the second time and placed on the
calendar