US Congress House Bill 2930 (Prior Session Legislation)

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Spectrum: Partisan Bill (Republican 6-0)
Status: Engrossed on November 7 2011 - 50% progression, died in chamber
Action: 2011-12-01 - Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 112-444.
Text: Latest bill text (Introduced) [PDF]

Entrepreneur Access to Capital Act - (Sec. 2) Amends the Securities Act of 1933 to exempt from its registration requirements and prohibitions any transactions involving the offer or sale of (crowdfunded) securities by an issuer if the aggregate amount sold within the previous 12-month period in reliance upon the exemption is: (1) $1 million, adjusted for inflation, or less; or (2) $2 million, adjusted for inflation, or less if the issuer provides potential investors with audited financial statements. Requires the aggregate amount sold to any investor in reliance on this exemption within the previous 12-month period, in either case, not to exceed the lesser of $10,000, adjusted for inflation, or 10% of the investor's annual income. (Crowdfunding is a method of capital formation where groups of people pool money, typically composed of very small individual contributions, and often via internet platforms, to invest in a company or otherwise support an effort by others to accomplish a specific goal.) Requires an intermediary between the issuer and the investor, if there is one, and an issuer, if there is no intermediary, to meet specified requirements. Requires both intermediaries and issuers (if there is no intermediary) with respect to such exempted transactions to: (1) warn investors of the speculative nature generally applicable to investments in startups, emerging businesses, and small issuers; (2) warn investors that there are restrictions on the re-sale of the securities; (3) take reasonable measures to reduce the risk of fraud with respect to the transaction; (4) provide the Securities and Exchange Commission (SEC) with information about the intermediary or about the issuer and the offering, as the case may be; (5) provide the SEC with continuous investor-level access to the intermediary's or the issuer's website; (6) require each investor to answer questions demonstrating a basic understanding of the nature of the securities offered, including the risk of illiquidity; (7) outsource cash-management functions to a qualified third party custodian; (8) maintain books and records the SEC deems appropriate; (9) allow for communication between the issuer and investors via the intermediary's or the issuer's website; (10) not offer investment advice; and (11) notify the SEC upon completion of the offering. Requires the issuer (and requires an intermediary to require the issuer) to state a target offering amount as well as a deadline to reach it, and ensure that the third party custodian withholds offering proceeds until the aggregate capital raised from investors other than the issuer is no less than 60 % of the target offering amount. Requires an intermediary, in addition, to: (1) carry out background checks on the issuer's principals, and (2) provide the SEC and potential investors with information about the issuer and the offering. Requires an issuer to disclose its interest in the issuance to investors. Authorizes an issuer or intermediary to rely upon certifications as to annual income provided by the person to whom the securities are sold to verify the investor's income. Directs the SEC to make available to the states information it receives about the intermediary, issuer, and offering. Restricts investor sales of certain securities during the one-year period beginning on the date of purchase, unless such securities are sold to either the issuer of the securities or to an accredited investor. Declares that an intermediary shall not be treated as a broker under the securities laws solely by reason of participation in a crowdfunded transaction. States that this Act does not preclude an issuer from raising capital through other means. Directs the SEC to establish disqualification criteria that render either an issuer or intermediary ineligible to utilize a specified exemption under the Securities Act of 1933 based upon the disciplinary history of the issuer or its predecessors, affiliates, officers, directors, or persons fulfilling similar roles. Requires such criteria to be substantially similar to rules adopted for disqualifying felons from Regulation D offerings in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act. (Sec. 3) Amends the Securities Exchange Act of 1934 to exclude securities held by persons who purchase them in crowdfunded transactions under this Act from application of the 500-to-750 shareholder "held of record" criterion for a class of equity security subject to mandatory registration. (Sec. 4) Amends the Securities Act of 1933 to exempt such crowdfunded securities from state regulation of securities offerings; but retains state jurisdiction over fraud, deceit, or the unlawful conduct of intermediaries, issuers, and custodians.

Entrepreneur Access to Capital Act

Rep. Patrick McHenry [R-NC]	Rep. Kevin Brady [R-TX]	Rep. Robert Dold [R-IL]	Rep. Sean Duffy [R-WI]
Rep. Jean Schmidt [R-OH]	Rep. David Schweikert [R-AZ]

2011-11-03 - House - On Passage (Y: 407 N: 17 NV: 9 Abs: 0) [PASS]
2011-11-03 - House - On Motion to Recommit with Instructions (Y: 187 N: 237 NV: 9 Abs: 0) [FAIL]
2011-11-03 - House - On Agreeing to the Amendment (Y: 189 N: 234 NV: 10 Abs: 0) [FAIL]

Date	Chamber	Action
2011-12-01	Senate	Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 112-444.
2011-11-08	Senate	Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 224.
2011-11-07	Senate	Received in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
2011-11-03	House	Motion to reconsider laid on the table Agreed to without objection.
2011-11-03	House	On passage Passed by recorded vote: 407 - 17 (Roll no. 825).
2011-11-03	House	On motion to recommit with instructions Failed by recorded vote: 187 - 237 (Roll no. 824). (consideration: CR H7310-7311)
2011-11-03	House	The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H7310-7311)
2011-11-03	House	DEBATE - The House proceeded with 10 minutes of debate on the Holt motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add language that prohibits an intermediary from participating in a crowdfunding transaction if they are doing business with the Iranian government.
2011-11-03	House	Mr. Holt moved to recommit with instructions to Financial Services. (consideration: CR H7309; text: CR H7309)
2011-11-03	House	The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text: CR H7300-7301)
2011-11-03	House	The previous question was ordered pursuant to the rule. (consideration: CR H7309)
2011-11-03	House	The House rose from the Committee of the Whole House on the state of the Union to report H.R. 2930.
2011-11-03	House	H.AMDT.853 On agreeing to the Velazquez amendment (A004) Failed by recorded vote: 189 - 234 (Roll no. 823).
2011-11-03	House	UNFINISHED BUSINESS - The Chair announced that the unfinished business was on the question of adoption of amendments which had been debated earlier and on which further proceedings had been postponed.
2011-11-03	House	The Committee resumed its sitting.
2011-11-03	House	The Committee rose informally to receive a message.
2011-11-03	House	H.AMDT.855 On agreeing to the Perlmutter amendment (A006) Agreed to by voice vote.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the Perlmutter amendment.
2011-11-03	House	H.AMDT.855 Amendment (A006) offered by Mr. Perlmutter. (consideration: CR H7306-7308; text: CR H7306)Amendment ensures that the States' securities regulators have the authority to police fraud, deceit, misrepresentation, and other unlawful behavior in order to protect investors.
2011-11-03	House	H.AMDT.854 On agreeing to the Barrow amendment (A005) Failed by voice vote.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the Barrow amendment.
2011-11-03	House	H.AMDT.854 Amendment (A005) offered by Mr. Barrow. (consideration: CR H7304-7306; text: CR H7304-7305)Amendment sought to require the SEC to establish a website that provides the public with safety tips for investing in securities.
2011-11-03	House	POSTPONED PROCEEDINGS - At the conclusion of debate on the Velazquez amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the noes had prevailed. Ms. Velazquez demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the Velazquez amendment.
2011-11-03	House	H.AMDT.853 Amendment (A004) offered by Ms. Velazquez. (consideration: CR H7303-7304, H7308-7309; text: CR H7303)Amendment sought to require crowdfunding intermediaries to disclose how they are compensated.
2011-11-03	House	H.AMDT.852 On agreeing to the Quayle amendment (A003) Agreed to by voice vote.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the Quayle amendment.
2011-11-03	House	H.AMDT.852 Amendment (A003) offered by Mr. Quayle. (consideration: CR H7303; text: CR H7303)Amendment adjusts for inflation the annual cap of the individual investments in the securities.
2011-11-03	House	H.AMDT.851 On agreeing to the Fincher amendment (A002) Agreed to by voice vote.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the Fincher amendment.
2011-11-03	House	H.AMDT.851 Amendment (A002) offered by Mr. Fincher. (consideration: CR H7302-7303; text: CR H7302)Amendment adjusts for inflation the $1 million and $2 million caps on the aggregate annual amount raised through the issuance of securities.
2011-11-03	House	H.AMDT.850 On agreeing to the McHenry amendment (A001) Agreed to by voice vote.
2011-11-03	House	DEBATE - Pursuant to the provisions of H.Res. 453, the Committee of the Whole proceeded with 10 minutes of debate on the McHenry amendment.
2011-11-03	House	H.AMDT.850 Amendment (A001) offered by Mr. McHenry. (consideration: CR H7301-7302; text: CR H7301-7302)Manager's amendment makes sundry technical and conforming changes.
2011-11-03	House	GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 2930.
2011-11-03	House	The Speaker designated the Honorable Charles F. Bass to act as Chairman of the Committee.
2011-11-03	House	House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 453 and Rule XVIII.
2011-11-03	House	Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. The resolution provides that the amendments in the nature of a substitute recommended by the Committee on Financial Services now printed in each of the bills are considered adopted. The bills, as amended, are considered read. Specified amendments are in order.
2011-11-03	House	Considered under the provisions of rule H. Res. 453. (consideration: CR H7295-7308, H7308-7311)
2011-11-02	House	Rules Committee Resolution H. Res. 453 Reported to House. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. The resolution provides that the amendments in the nature of a substitute recommended by the Committee on Financial Services now printed in each of the bills are considered adopted. The bills, as amended, are considered read. Specified amendments are in order.
2011-10-31	House	Placed on the Union Calendar, Calendar No. 175.
2011-10-31	House	Reported (Amended) by the Committee on Financial Services. H. Rept. 112-262.
2011-10-26	House	Ordered to be Reported (Amended) by Voice Vote.
2011-10-26	House	Committee Consideration and Mark-up Session Held.
2011-10-05	House	Forwarded by Subcommittee to Full Committee by the Yeas and Nays: 18 - 14 .
2011-10-05	House	Subcommittee Consideration and Mark-up Session Held.
2011-10-04	House	Referred to the Subcommittee on Capital Markets and Government Sponsored Enterprises.
2011-09-21	House	Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Referral.
2011-09-14	House	Referred to the House Committee on Financial Services.

HR453 (Related) 2011-11-03 - Motion to reconsider laid on the table Agreed to without objection.
SB1791 (Related) 2011-12-01 - Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 112-444.

Type	Source
Summary	https://www.congress.gov/bill/112th-congress/house-bill/2930/all-info
Text	https://www.congress.gov/112/bills/hr2930/BILLS-112hr2930ih.pdf
Text	https://www.congress.gov/112/bills/hr2930/BILLS-112hr2930eh.pdf
Text	https://www.congress.gov/112/bills/hr2930/BILLS-112hr2930rh.pdf
Text	https://www.congress.gov/112/bills/hr2930/BILLS-112hr2930pcs.pdf
Roll Call	https://clerk.house.gov/Votes/2011823
Roll Call	https://clerk.house.gov/Votes/2011824
Roll Call	https://clerk.house.gov/Votes/2011825