Difference between revisions of "114-HR4498 HALOS Act"

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{{McCarthysInnovationInitiative
+
{{Legislation
|Name of Bill=H.R.4498 Helping Angels Lead Our Startups (HALOS) Act
+
|Has title=114-HR4498 HALOS Act
|Year=2016
+
|Proposed in=114
|Sponsor=Rep. Chabot, Steve (R-OH-1)
+
|Sponsored by=Rep. Chabot, Steve (R-OH-1)
|Cosponsor=Rep. Sinema, Kyrsten (D-AZ-9), Rep. Hurt, Robert (R-VA-5), Rep. Takai, Mark (D-HI-1), Rep. Curbelo, Carlos (R-FL-26), Rep. Wagner, Ann (R-MO-2), Rep. Costello, Ryan A. (R-PA-6), Rep. Barr, Andy (R-KY-6), Rep. Hultgren, Randy (R-IL-14), Rep. Delaney, John K. (D-MD-6), Rep. Sessions, Pete (R-TX-32), Rep. Polis, Jared (D-CO-2)
+
|Reviewing committee=House - Financial Services, Senate - Banking, Housing, and Urban Affairs
|Status of Bill=Passed House,
+
|Has bill status=Died
|Related Bills=Financial CHOICE Act of 2016, HALOS Act, Fostering Innovation Act,
+
|Has keywords=McCarthy
 
}}
 
}}
(Sec. 3) This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:
+
The HALOS Act is short for the "Helping Angels Lead Our Startups Act".
 +
 
 +
====Sec. 3====
 +
This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:
 +
*presentations or communications are made by or on behalf of an issuer,
 +
*the advertising does not refer to any specific offering of securities by the issuer,
 +
*the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),
 +
*the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and
 +
*no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).
  
presentations or communications are made by or on behalf of an issuer,
 
the advertising does not refer to any specific offering of securities by the issuer,
 
the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),
 
the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and
 
no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).
 
 
This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.
 
This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.
  
 
==Bill Text==
 
==Bill Text==
  
[Congressional Bills 114th Congress]
+
114th CONGRESS
[From the U.S. Government Publishing Office]
+
2d Session
[H.R. 4498 Referred in Senate (RFS)]
+
H. R. 4498
 +
IN THE SENATE OF THE UNITED STATES
 +
April 28, 2016
 +
Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs
 +
 
 +
AN ACT
 +
To clarify the definition of general solicitation under Federal securities law.
 +
 
 +
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
 +
SECTION 1. SHORT TITLE.
 +
 
 +
This Act may be cited as the “Helping Angels Lead Our Startups Act” or the “HALOS Act”.
 +
 
 +
SEC. 2. DEFINITION OF ANGEL INVESTOR GROUP.
 +
 
 +
As used in this Act, the term “angel investor group” means any group that—
 +
 
 +
(1) is composed of accredited investors interested in investing personal capital in early-stage companies;
 +
 
 +
(2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and
 +
 
 +
(3) is neither associated nor affiliated with brokers, dealers, or investment advisers.
 +
 
 +
SEC. 3. CLARIFICATION OF GENERAL SOLICITATION.
 +
 
 +
(a) In General.—Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 CFR 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event—
 +
 
 +
(1) sponsored by—
  
114th CONGRESS
+
(A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing;
  2d Session
 
                                H. R. 4498
 
  
 +
(B) a college, university, or other institution of higher education;
  
_______________________________________________________________________
+
(C) a nonprofit organization;
  
 +
(D) an angel investor group;
  
                  IN THE SENATE OF THE UNITED STATES
+
(E) a venture forum, venture capital association, or trade association; or
  
                            April 28, 2016
+
(F) any other group, person or entity as the Securities and Exchange Commission may determine by rule;
  
Received; read twice and referred to the Committee on Banking, Housing,
+
(2) where any advertising for the event does not reference any specific offering of securities by the issuer;
                          and Urban Affairs
 
  
_______________________________________________________________________
+
(3) the sponsor of which—
  
                                AN ACT
+
(A) does not make investment recommendations or provide investment advice to event attendees;
  
 +
(B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event;
  
+
(C) does not charge event attendees any fees other than administrative fees; and
    To clarify the definition of general solicitation under Federal
 
                            securities law.
 
  
    Be it enacted by the Senate and House of Representatives of the  
+
(D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and
United States of America in Congress assembled,
 
  
SECTION 1. SHORT TITLE.
+
(4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than—
  
    This Act may be cited as the ``Helping Angels Lead Our Startups
+
(A) that the issuer is in the process of offering securities or planning to offer securities;
Act'' or the ``HALOS Act''.
 
  
SEC. 2. DEFINITION OF ANGEL INVESTOR GROUP.
+
(B) the type and amount of securities being offered;
  
    As used in this Act, the term ``angel investor group'' means any
+
(C) the amount of securities being offered that have already been subscribed for; and
group that--
 
            (1) is composed of accredited investors interested in
 
        investing personal capital in early-stage companies;
 
            (2) holds regular meetings and has defined processes and
 
        procedures for making investment decisions, either individually
 
        or among the membership of the group as a whole; and
 
            (3) is neither associated nor affiliated with brokers,
 
        dealers, or investment advisers.
 
  
SEC. 3. CLARIFICATION OF GENERAL SOLICITATION.
+
(D) the intended use of proceeds of the offering.
  
    (a) In General.--Not later than 6 months after the date of
+
(b) Rule Of Construction.—Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.
enactment of this Act, the Securities and Exchange Commission shall
 
revise Regulation D of its rules (17 CFR 230.500 et seq.) to require
 
that in carrying out the prohibition against general solicitation or
 
general advertising contained in section 230.502(c) of title 17, Code
 
of Federal Regulations, the prohibition shall not apply to a
 
presentation or other communication made by or on behalf of an issuer
 
which is made at an event--
 
            (1) sponsored by--
 
                    (A) the United States or any territory thereof, by
 
                the District of Columbia, by any State, by a political
 
                subdivision of any State or territory, or by any agency
 
                or public instrumentality of any of the foregoing;
 
                    (B) a college, university, or other institution of
 
                higher education;
 
                    (C) a nonprofit organization;
 
                    (D) an angel investor group;
 
                    (E) a venture forum, venture capital association,
 
                or trade association; or
 
                    (F) any other group, person or entity as the
 
                Securities and Exchange Commission may determine by
 
                rule;
 
            (2) where any advertising for the event does not reference
 
        any specific offering of securities by the issuer;
 
            (3) the sponsor of which--
 
                    (A) does not make investment recommendations or
 
                provide investment advice to event attendees;
 
                    (B) does not engage in an active role in any
 
                investment negotiations between the issuer and
 
                investors attending the event;
 
                    (C) does not charge event attendees any fees other
 
                than administrative fees; and
 
                    (D) does not receive any compensation with respect
 
                to such event that would require registration of the
 
                sponsor as a broker or a dealer under the Securities
 
                Exchange Act of 1934, or as an investment advisor under
 
                the Investment Advisers Act of 1940; and
 
            (4) where no specific information regarding an offering of
 
        securities by the issuer is communicated or distributed by or
 
        on behalf of the issuer, other than--
 
                    (A) that the issuer is in the process of offering
 
                securities or planning to offer securities;
 
                    (B) the type and amount of securities being
 
                offered;
 
                    (C) the amount of securities being offered that
 
                have already been subscribed for; and
 
                    (D) the intended use of proceeds of the offering.
 
    (b) Rule of Construction.--Subsection (a) may only be construed as  
 
requiring the Securities and Exchange Commission to amend the  
 
requirements of Regulation D with respect to presentations and  
 
communications, and not with respect to purchases or sales.
 
  
            Passed the House of Representatives April 27, 2016.
+
Passed the House of Representatives April 27, 2016.
  
            Attest:
+
Attest: karen l. haas, 
 +
Clerk
  
                                                KAREN L. HAAS,
 
  
                                                                Clerk.
+
==Resources==
  
==References==
+
[https://www.congress.gov/bill/114th-congress/house-bill/4498 Link to bill page]
  
https://www.congress.gov/bill/114th-congress/house-bill/4498?q=%7B%22search%22%3A%5B%22HR+4498%22%5D%7D&r=1
+
[[Category: McCarthy]]

Latest revision as of 15:14, 18 April 2017

Legislation
Title 114-HR4498 HALOS Act
Congress 114
Sponsor Rep. Chabot, Steve (R-OH-1)
Committee(s) House - Financial Services, Senate - Banking, Housing, and Urban Affairs
Status Died
Keywords McCarthy
© edegan.com, 2016

The HALOS Act is short for the "Helping Angels Lead Our Startups Act".

Sec. 3

This bill directs the Securities and Exchange Commission (SEC) to amend Regulation D (governing the limited offer and sale of securities without registration under the Securities Act of 1933) to make the prohibition against general solicitation or general advertising inapplicable to events with specified kinds of sponsors (including angel investor groups not connected to broker-dealers or investment advisers) where:

  • presentations or communications are made by or on behalf of an issuer,
  • the advertising does not refer to any specific offering of securities by the issuer,
  • the sponsor does not engage in certain activities (such as offering investment recommendations or advice to attendees),
  • the sponsor does not receive compensation for the event which would require registration as a broker or dealer or as an investment advisor, and
  • no specific information regarding a securities offering is communicated (other than that the issuer is in the process of offering or planning to offer securities, including the type and amount of securities being offered).

This bill may only be construed as requiring the SEC to amend Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

Bill Text

114th CONGRESS 2d Session H. R. 4498 IN THE SENATE OF THE UNITED STATES April 28, 2016 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT To clarify the definition of general solicitation under Federal securities law.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the “Helping Angels Lead Our Startups Act” or the “HALOS Act”.

SEC. 2. DEFINITION OF ANGEL INVESTOR GROUP.

As used in this Act, the term “angel investor group” means any group that—

(1) is composed of accredited investors interested in investing personal capital in early-stage companies;

(2) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and

(3) is neither associated nor affiliated with brokers, dealers, or investment advisers.

SEC. 3. CLARIFICATION OF GENERAL SOLICITATION.

(a) In General.—Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D of its rules (17 CFR 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event—

(1) sponsored by—

(A) the United States or any territory thereof, by the District of Columbia, by any State, by a political subdivision of any State or territory, or by any agency or public instrumentality of any of the foregoing;

(B) a college, university, or other institution of higher education;

(C) a nonprofit organization;

(D) an angel investor group;

(E) a venture forum, venture capital association, or trade association; or

(F) any other group, person or entity as the Securities and Exchange Commission may determine by rule;

(2) where any advertising for the event does not reference any specific offering of securities by the issuer;

(3) the sponsor of which—

(A) does not make investment recommendations or provide investment advice to event attendees;

(B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event;

(C) does not charge event attendees any fees other than administrative fees; and

(D) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and

(4) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than—

(A) that the issuer is in the process of offering securities or planning to offer securities;

(B) the type and amount of securities being offered;

(C) the amount of securities being offered that have already been subscribed for; and

(D) the intended use of proceeds of the offering.

(b) Rule Of Construction.—Subsection (a) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.

Passed the House of Representatives April 27, 2016.

Attest: karen l. haas, Clerk


Resources

Link to bill page