[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3939 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 3939
To amend the Securities Act of 1933 to provide small issuers with a
micro-offering exemption free of mandated disclosures or offering
filings, but subject to the antifraud provisions of the Federal
securities laws, and for other purposes.
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IN THE SENATE OF THE UNITED STATES
March 28, 2022
Mr. Scott of South Carolina (for himself and Mr. Moran) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
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A BILL
To amend the Securities Act of 1933 to provide small issuers with a
micro-offering exemption free of mandated disclosures or offering
filings, but subject to the antifraud provisions of the Federal
securities laws, and for other purposes.
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 ``Small Entrepreneurs' Empowerment and
Development Act of 2022'' or the ``SEED Act of 2022''.
SEC. 2. MICRO-OFFERING EXEMPTION.
(a) In General.--Section 4 of the Securities Act of 1933 (15 U.S.C.
77d) is amended--
(1) in subsection (a), by adding at the end the following:
``(8) transactions meeting the requirements of subsection
(f).''; and
(2) by adding at the end the following:
``(f) Micro-Offerings.--
``(1) In general.--The transactions referred to in
subsection (a)(8) are transactions involving the sale of
securities by an issuer (including all entities controlled by
or under common control with the issuer) where the aggregate
amount of all securities sold by the issuer, including any
amount sold in reliance on the exemption provided under
subsection (a)(8), during the 12-month period preceding such
transaction, does not exceed $500,000.
``(2) Adjustment.--The dollar amount in paragraph (1) shall
be adjusted by the Commission not less frequently than once
every 5 years and at the same time as the adjustments made
under section 4A(h), by notice published in the Federal
Register to reflect any change in the Consumer Price Index for
All Urban Consumers published by the Bureau of Labor
Statistics, setting the threshold to the nearest 10,000.
``(3) Bad actor prohibition.--The exemption under this
subsection shall not apply to any person subject to--
``(A) an event that would disqualify an issuer or
other covered person under section 230.506(d)(1) of
title 17, Code of Federal Regulations; or
``(B) a statutory disqualification, as defined in
section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)).''.
(b) Exemption Under State Regulations.--Section 18(b)(4) of the
Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended--
(1) in subparagraph (F), by striking ``or'' at the end;
(2) in subparagraph (G), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(H) section 4(a)(8).''.
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