GovTrack’s Bill Summary
We don’t have a summary available yet.
The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.
We don’t have a summary available yet.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.
This summary can be found at http://www.gop.gov/bill/112/1/hr2930.
This bill is part of a package of legislation intended to improve small businesses’ access to capital. Specifically, H.R. 2930 would improve capital formation by expanding equity financing options. The traditional alternative method, a commercial bank loan, is increasingly difficult in light of tightened lending standards following the financial crisis of 2008-09. Capital formation is necessary for business expansion and therefore job creation and sustained economic growth.
According to the Committee on Financial Services, “crowdfunding” is an increasingly popular method of capital formation, where, according to SEC Chairman Mary Schapiro, "groups of people pool money, typically comprised of very small individual contributions, to support an effort by others to accomplish a specific goal." Current SEC regulations impede this innovative and lower-risk form of financing, by prohibiting general solicitation and advertisements for non-registered offerings and capping the number of shareholders for non-registered companies at 500. This bill would remove SEC restrictions that prevent “crowdfunding” so entrepreneurs can raise equity capital from a large pool of small investors who may or may not be considered “accredited” by the SEC.
The legislation would amend the Securities Act of 1933 to establish an exemption from the requirement that certain securities be registered with the Securities Exchange Commission (SEC). Specifically, the bill would exempt securities from registration requirements if:
In order to qualify for this exemption, the bill would also require issuers or intermediaries acting between issuers and investors to provide certain information and risk disclosures to investors, such as warnings of the speculative nature generally applicable to investments in startups, emerging businesses, and small issuers. The bill would also require issuers or intermediaries to provide information about the issuer and offering to the SEC, in addition to providing continuous investor-level access to the intermediary's website and maintaining such books and records as the SEC deems appropriate.
Additionally, the bill would require the SEC to develop regulations to implement this new authority and to set out actions that would disqualify certain individuals from issuing securities under the exemption.
The Congressional Budget Office (CBO) estimates that implementing H.R. 2930 would have a negligible impact on the SEC’s workload, and any change in agency spending that is subject to appropriation would not be significant. Enacting H.R. 2930 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply.
The House Democratic Caucus does not provide summaries of bills.
So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.
We’ll be looking for a source of summaries from the other side in the meanwhile.
The bill contains the following citations to other parts of U.S. law:
The United States Code is the compilation of permanent laws enacted by Congress. Temporary and other non-permanent laws do not appear in the United States Code. (About half of the United States Code is the law itself, called positive law. The other half is merely a compilation of the laws but has no legal significance.)