Vote Smart's Synopsis:

Vote to pass a bill that exempts certain micro-offerings from the registration requirements of the Securities Act of 1933.

Highlights:

• Amends section 4 of the Securities Act of 1933 to exempt certain micro-offerings from (Sec. 2):

• State regulation of the sale of securities; and

• Federal prohibitions on interstate securities sales.

• Specifies that the exempted micro-offerings must meet all of the following requirements (Sec. 2):

• The purchaser has a substantive pre-existing relationship with the issuer;

• There are no more than 35 purchasers relying on the exemption during the 12-month period preceding the transaction; and

• The amount of all securities sold by the issuer during the 12-month period preceding the transaction does not exceed $500,000.

• Specifies that this exemption applies not only to an issuer, but also to all entities controlled by, or under common control with, the issuer (Sec. 2).

Full Bill Text

Full Bill Text