,,ii  #aac? ,,congress  #b;d ,session   
,s4 #aibc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #ad1 #bjad,mr4 
,man*9 7= himself & ,mr4 ,vitt]7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,securities ,ex*ange 
,act ( #aicd to exempt f regi/ration    
brok]s p]=m+ s]vices 9 connection ) !   
transf] ( own]%ip ( small] privately    
held companies4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,small ,bus9ess    
,m]g]s1 ,acquisitions1 ,sales1 &        
,brok]age ,simplification ,act ( #bjad4 
#b4 ,regi/ration exemption = m]g] &     
acquisition brok]s ,section #ae7;b7 ( ! 
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gho7b77 is am5d$ by add+ at !
 end ! foll[+3  7#ac7 ,regi/ration      
exemption = m]g] & acquisition brok]s   
7,a7 ,9 g5]al ,except z provid$ 9       
subp>agraph 7,b71 an ,m,a brok] %all be 
exempt f regi/ration "u ?is section4    
7,b7 ,exclud$ activities ,an ,m,a brok] 

is n exempt f regi/ration "u ?is        
p>agraph if su* brok] does any ( !      
foll[+3 7i7 ,directly or indirectly1 9  
connection ) ! transf] ( own]%ip ( an   
eligible privately held company1        
receives1 holds1 transmits1 or has      
cu/ody ( ! funds or securities to be    
ex*ang$ by ! p>ties to ! transaction4   
7ii7 ,engages on behalf ( an issu] 9 a  
public (f]+ ( any class ( securities t  
is regi/]$1 or is requir$ to be regi/]$1
 ) ! ,commission "u section #ab or )    
respect to :i* ! issu] files1 or is     
requir$ to file1 p]iodic in=mation1     
docum5ts1 & reports "u subsection 7d74  
7,c7 ,rule ( con/ruction ,no?+ 9 ?is    
p>agraph %all be con/ru$ to limit any   
o!r au?ority ( ! ,commission to exempt  
any p]son1 or any class ( p]sons1 f any 
provision ( ?is title1 or f any         
provision ( any rule or regulation      
!reund]4  7,d7 ,def9itions ,9 ?is       
p>agraph3 7i7 ,control ,! t]m control   
means ! p[]1 directly or indirectly1 to 
direct ! managem5t or policies ( a      

company1 :e!r ?r\gh own]%ip (           
securities1 by contract1 or o!rwise4    
,!re is a presumption ( control = any   
p]son :o-- 7,i7 is a director1 g5]al    
p>tn]1 memb] or manag] ( a limit$       
liability company1 or (fic] ex]cis+     
executive responsibility 7or has simil> 
/atus or functions72  7,,ii7 has ! "r to
 vote #bj p]c5t or m ( a class ( vot+   
securities or ! p[] to sell or direct ! 
sale ( #bj p]c5t or m ( a class ( vot+  
securities2 or  7,,iii7 9 ! case ( a    
p>tn]%ip or limit$ liability company1   
has ! "r to receive ^u dissolution1 or  
has contribut$1 #bj p]c5t or m ( !      
capital4  7ii7 ,eligible privately held 
company ,! t]m eligible privately held  
company means a company t meets bo? ( ! 
foll[+ conditions3 7,i7 ,! company does 
n h any class ( securities regi/]$1 or  
requir$ to be regi/]$1 ) ! ,commission  
"u section #ab or ) respect to :i* !    
company files1 or is requir$ to file1   
p]iodic in=mation1 docum5ts1 & reports  
"u subsection 7d74  7,,ii7 ,9 ! fiscal  

ye> end+ imm$iately be=e ! fiscal ye> 9 
:i* ! s]vices ( ! ,m,a brok] are        
initially engag$ ) respect to !         
securities transaction1 ! company meets 
ei!r or bo? ( ! foll[+ conditions       
7det]m9$ 9 accordance ) ! hi/orical     
f9ancial acc\nt+ records ( ! company73  
7aa7 ,! e>n+s ( ! company be=e int]e/1  
taxes1 depreciation1 & amortization are 
less ?an #be1jjj1jjj4  7bb7 ,! gross    
rev5ues ( ! company are less ?an        
#bej1jjj1jjj4  7iii7 ,m,a brok] ,! t]m  
,m,a brok] means a brok]1 & any p]son   
associat$ ) a brok]1 engag$ 9 ! bus9ess 
( effect+ securities transactions solely
 9 connection ) ! transf] ( own]%ip ( an
 eligible privately held company1       
reg>dless ( :e!r ! brok] acts on behalf 
( a sell] or buy]1 ?r\gh ! pur*ase1     
sale1 ex*ange1 issuance1 repur*ase1 or  
r$emption (1 or a bus9ess comb9ation    
involv+1 securities or assets ( !       
eligible privately held company1 if !   
brok] reasonably believes t-- 7,i7 ^u   
consummation ( ! transaction1 any p]son 

acquir+ securities or assets ( !        
eligible privately held company1 act+   
alone or 9 conc]t1 w control &1 directly
 or indirectly1 w be active 9 !         
managem5t ( ! eligible privately held   
company or ! bus9ess conduct$ ) ! assets
 ( ! eligible privately held company2 & 
7,,ii7 if any p]son is (f]$ securities 9
 ex*ange = securities or assets ( !     
eligible privately held company1 su*    
p]son w1 prior to becom+ legally b\nd to
 consummate ! transaction1 receive or h 
reasonable access to ! mo/ rec5t ye>-end
 balance %eet1 income /atem5t1 /atem5t (
 *anges 9 f9ancial position1 & /atem5t (
 own]'s equity ( ! issu] ( ! securities 
(f]$ 9 ex*ange1 &1 if ! f9ancial        
/atem5ts ( ! issu] are audit$1 ! relat$ 
report ( ! indep5d5t auditor1 a balance 
%eet dat$ n m ?an #abj days be=e ! date 
( ! (f]1 & in=mation p]ta9+ to !        
managem5t1 bus9ess1 results ( op]ations 
= ! p]iod cov]$ by ! =ego+ f9ancial     
/atem5ts1 & mat]ial loss cont+5cies ( ! 
issu]4  7,e7 ,inflation adju/m5t  7i7 ,9

 g5]al ,on ! date t is #e ye>s aft] !   
date ( ! enactm5t ( ! ,small ,bus9ess   
,m]g]s1 ,acquisitions1 ,sales1 &        
,brok]age ,simplification ,act ( #bjad1 
& e #e ye>s !reaft]1 ea* doll> am\nt 9  
subp>agraph 7,d77ii77,,ii7 %all be      
adju/$ by-- 7,i7 divid+ ! annual value (
 ! ,employm5t ,co/ ,index ,= ,wages &   
,sal>ies1 ,private ,indu/ry ,work]s 7or 
any successor index71 z publi%$ by !    
,bureau ( ,labor ,/ati/ics1 = ! cal5d>  
ye> prec$+ ! cal5d> ye> 9 :i* ! adju/m5t
 is be+ made by ! annual value ( su*    
index 7or successor7 = ! cal5d> ye> end+
 ,decemb] #ca1 #bjab2 &  7,,ii7         
multiply+ su* doll> am\nt by ! quoti5t  
obta9$ "u subclause 7,i74  7ii7 ,r\nd+  
,ea* doll> am\nt det]m9$ "u clause 7i7  
%all be r\nd$ to ! ne>e/ multiple (     
#ajj1jjj4  4  #c4 ,effective date ,?is  
,act & any am5dm5t made by ?is ,act %all
 take effect on ! date t is #ij days    
aft] ! date ( ! enactm5t ( ?is ,act4