,i #aaf? ,,congress #a/ ,session ,h4 ,r4 #cgfh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #af1 #bjai,mr4 ,budd introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to create a safe h>bor = f9d]s & private placem5t brok]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,unlock+ ,capital = ,small ,bus9esses ,act ( #bjai4 #b4 ,safe h>bors = private placem5t brok]s & f9d]s 7a7 ,9 g5]al ,section #ae ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7 is am5d$ by add+ at ! end ! foll[+3 7p7 ,private placem5t brok] safe h>bor 7#a7 ,regi/ration requirem5ts ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection ! ,commission %all promulgate regulations ) respect to private placem5t brok]s t are no m /r+5t ?an ^? impos$ on fund+ portals4 7#b7 ,national securities associations ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection ! ,commission %all promulgate regulations t require ! rules ( any national securities association to all[ a private placem5t brok] to become a memb] ( su* national securities association subject to r$uc$ memb]%ip requirem5ts consi/5t ) ?is subsection4 7#c7 ,disclosures requir$ ,be=e effect+ a transaction1 a private placem5t brok] %all disclose cle>ly & conspicu\sly1 9 writ+1 to all p>ties to ! transaction z a result ( ! brok]'s activities-- 7,a7 t ! brok] is act+ z a private placem5t brok]2 7,b7 ! am\nt ( any paym5t or anticipat$ paym5t = s]vices r5d]$ z a private placem5t brok] 9 connection ) su* transaction2 7,c7 ! p]son to :om any su* paym5t is made2 7,d7 any b5eficial int]e/ 9 ! issu]1 direct or indirect1 ( ! private placem5t brok]1 ( a memb] ( ! imm$iate family ( ! private placem5t brok]1 ( an associat$ p]son ( ! private placem5t brok]1 or ( a memb] ( ! imm$iate family ( su* associat$ p]son4 7#d7 ,private placem5t brok] def9$ ,9 ?is subsection1 ! t]m private placem5t brok] means a p]son t-- 7,a7 receives transaction-bas$ comp5sation-- 7i7 = effect+ a transaction by-- 7,i7 introduc+ an issu] ( securities & a buy] ( su* securities 9 connection ) ! sale ( a bus9ess effect$ z ! sale ( securities2 or 7,,ii7 introduc+ an issu] ( securities & a buy] ( su* securities 9 connection ) ! placem5t ( securities 9 transactions t are exempt f regi/ration requirem5ts "u ! ,securities ,act ( #aicc2 & 7ii7 t is n ) respect to-- 7,i7 a class ( publicly trad$ securities2 7,,ii7 ! securities ( an inve/m5t company 7z def9$ 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj72 or 7,,iii7 a v>iable or equity-index$ annuity or o!r v>iable or equity-index$ life insurance product2 7,b7 ) respect to a transaction = :i* su* transaction-bas$ comp5sation is receiv$-- 7i7 does n h&le or take possession ( ! funds or securities2 & 7ii7 does n engage 9 an activity t requires regi/ration z an inve/m5t advis] "u ,/ate or ,f$]al law2 & 7,c7 is n a f9d] z def9$ "u subsection 7q74 7q7 ,f9d] safe h>bor 7#a7 ,nonregi/ration ,a f9d] is exempt f ! regi/ration requirem5ts ( ?is ,act4 7#b7 ,national securities associations ,a f9d] %all n be requir$ to become a memb] ( any national securities association4 7#c7 ,f9d] def9$ ,9 ?is subsection1 ! t]m f9d] means a p]son describ$ 9 p>agraphs 7,a7 & 7,b7 ( subsection 7p77#d7 t-- 7,a7 receives transaction-bas$ comp5sation ( equal to or less ?an #ejj1jjj 9 any cal5d> ye>2 7,b7 receives transaction-bas$ comp5sation 9 connection ) transactions t result 9 a s+le issu] sell+ securities valu$ at equal to or less ?an #ae million 9 any cal5d> ye>2 7,c7 receives transaction-bas$ comp5sation 9 connection ) transactions t result 9 any comb9ation ( issu]s sell+ securities valu$ at equal to or less ?an #cj million 9 any cal5d> ye>2 or 7,d7 receives transaction-bas$ comp5sation 9 connection ) few] ?an #af transactions t are n "p ( ! same (f]+ or are o!rwise unrelat$ 9 any cal5d> ye>4 4 7b7 ,validity ( contracts ) regi/]$ private placem5t brok]s & f9d]s ,section #bi ( ! ,securities ,ex*ange ,act 7#ae ,u4,s4,c4 #gh;cc7 is am5d$ by add+ at ! end ! foll[+3 7d7 ,subsection 7b7 %all n apply to a contract made = a transaction if-- 7#a7 ! transaction is "o 9 :i* ! issu] engag$ ! s]vices ( a brok] or deal] t is n regi/]$ "u ?is ,act ) respect to su* transaction2 7#b7 su* issu] receiv$ a self-c]tification f su* brok] or deal] c]tify+ t su* brok] or deal] is a regi/]$ private placem5t brok] "u section #ae7p7 or a f9d] "u section #ae7q72 & 7#c7 ! issu] ei!r did n "k t su* self-c]tification 0 false or did n h a reasonable basis to believe t su* self-c]tification 0 false4 4 7c7 ,removal ( private placem5t brok]s f def9itions ( brok] 7#a7 ,records & reports on monet>y in/rum5ts transactions ,section #ecab ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ 9 subsection 7a77#b77;,g7 by ins]t+ ) ! exception ( a private placem5t brok] z def9$ 9 section #ae7p77#d7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7p77#d77 be=e ! semicolon at ! end4 7#b7 ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#d7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#d77 is am5d$ by add+ at ! end ! foll[+3 7,g7 ,private placem5t brok]s ,a private placem5t brok] z def9$ 9 section #ae7p77#d7 is n a brok] = ! purposes ( ?is ,act4 4 #c4 ,limitations on ,/ate law ,section #ae7;i7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho7i77 is am5d$-- 7#a7 by r$esignat+ p>agraph 7#c7 z p>agraph 7#d72 & 7#b7 by ins]t+ aft] p>agraph 7#b7 ! foll[+3 7#c7 ,private placem5t brok]s & f9d]s 7,a7 ,9 g5]al ,no ,/ate or political subdivision !re( may en=ce any law1 rule1 regulation1 or o!r adm9i/rative action t imposes great] regi/ration1 audit1 f9ancial recordkeep+1 or report+ requirem5ts on a private placem5t brok] or f9d] ?an ^? t are requir$ "u subsections 7p7 & 7q71 respectively4 7,b7 ,def9ition ( ,/ate ,= purposes ( ?is p>agraph1 ! t]m ,/ate includes ! ,di/rict ( ,columbia & ea* t]ritory ( ! ,unit$ ,/ates4 4