H.R. 1839 — Introduced in House

I 114th CONGRESS 1st Session H. R. 1839 IN THE HOUSE OF REPRESENTATIVES April 16, 2015 Mr. McHenry introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Securities Act of 1933 to exempt certain transactions involving purchases by accredited investors, and for other purposes. 1. Short title This Act may be cited as the Reforming Access for Investments in Startup Enterprises Act of 2015 or the RAISE Act of 2015. 2. Exempted transactions (a) Exempted transactions 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 new paragraph: (7) transactions meeting the requirements of subsection (d). ; (2) by redesignating the second subsection (b) (relating to securities offered and sold in compliance with Rule 506 of Regulation D) as subsection (c); and (3) by adding at the end the following: (d) (1) The transactions referred to in subsection (a)(7) are transactions where— (A) each purchaser is an accredited investor, as that term is defined in section 230.501(a) of title 17, Code of Federal Regulations (or any successor thereto); and (B) if any securities sold in reliance on subsection (a)(7) are offered by means of any general solicitation or general advertising, all such sales are made through a platform available only to accredited investors. (2) Securities sold in reliance on subsection (a)(7) shall be deemed to have been acquired in a transaction not involving any public offering. (3) The exemption provided by this subsection shall not be available for a transaction where the seller is— (A) an issuer, its subsidiaries or parent; (B) an underwriter acting on behalf of the issuer, its subsidiaries or parent, which receives compensation from the issuer with respect to such sale; or (C) a dealer. (4) A transaction meeting the requirements of this subsection shall be deemed not to be a distribution for purposes of section 2(a)(11). . (b) Exemption in connection with certain exempt offerings Section 18(b)(4) of the Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended— (1) by redesignating the second subparagraph (D) and subparagraph (E) as subparagraphs (E) and (F), respectively; (2) in subparagraph (E), as so redesignated, by striking ; or and inserting a semicolon; (3) in subparagraph (F), as so redesignated, by striking the period and inserting ; or; and (4) by adding at the end the following new subparagraph: (G) section 4(a)(7). .