,,ib ,union ,calendar ,no4 #he #aaith   
,,congress  #ast ,session  ,h4 ,r4 #ccid
 ,report ,no4 #aai-aae ,,in ,,the       
,,house ,,of ,,representatives  ,may    
#ad1 #bjbe,mr4 ,hill of ,arkansas 7for  
himself and ,mr4 ,vargas7 introduced the
 following bill2 which was referred to  
the ,committee on ,financial ,services  
,june #c1 #bjbe;,additional sponsors3   
,mr4 ,davidson and ,mr4 ,sessions  ,june
 #c1 #bjbe,reported with an amendment1  
committed to the ,committee of the      
,whole ,house on the ,state of the      
,union1 and ordered to be printed,strike
 out all after the enacting clause and  
insert the part printed in italic,for   
text of introduced bill1 see copy of    
bill as introduced on ,may #ad1 #bjbe   
,a ,,bill  ,to amend the ,securities    
,act of #aicc to codify certain         
qualifications of individuals as        
accredited investors for purposes of the
 securities laws4  #a4 ,short title     
,this ,act may be cited as the ,fair    
,investment ,opportunities for          

,professional ,experts ,act4  #b4       
,definition of accredited investor  7a7 
,in general ,section #b7;a77#ae7 of the 
,securities ,act of #aicc 7#ae ,u4,s4,c4
 #gg;b7a77#ae77 is amended-- 7#a7 by    
redesignating subparagraphs 7i7 and 7ii7
 as subparagraphs 7,a7 and 7,f71        
respectively2 and  7#b7 in subparagraph 
7,a7 7as so redesignated71 by striking 2
 or and inserting a semicolon1 and      
inserting after such subparagraph the   
following3  7,b7 with respect to a      
proposed sale of a security1 any natural
 person whose individual net worth1 or  
joint net worth with that person's      
spouse or spousal equivalent1 at the    
time of such sale1 exceeds #a1jjj1jjj   
7which amount1 along with the amounts   
set forth in subparagraph 7,c71 shall be
 adjusted for inflation by the          
,commission every #e years to the       
nearest #aj1jjj to reflect the change in
 the ,consumer ,price ,index for ,all   
,urban ,consumers published by the      
,bureau of ,labor ,statistics7 where1   

for purposes of calculating net worth   
under this subparagraph-- 7i7 the       
person's primary residence shall not be 
included as an asset2  7ii7 indebtedness
 that is secured by the person's primary
 residence1 up to the estimated fair    
market value of the primary residence at
 the time of such sale1 shall not be    
included as a liability 7except that if 
the amount of such indebtedness         
outstanding at the time of such sale    
exceeds the amount outstanding #fj days 
before such time1 other than as a result
 of the acquisition of the primary      
residence1 the amount of such excess    
shall be included as a liability72 and  
7iii7 indebtedness that is secured by   
the person's primary residence in excess
 of the estimated fair market value of  
the primary residence at the time of    
such sale shall be included as a        
liability2  7,c7 any natural person who 
had an individual income in excess of   
#bjj1jjj in each of the #b most recent  
years or joint income with that person's

 spouse or spousal equivalent in excess 
of #cjj1jjj in each of those years and  
has a reasonable expectation of reaching
 the same income level in the current   
year2  7,d7 any natural person who is-- 
7i7 currently licensed or registered as 
a broker or investment adviser by the   
,commission1 a self-regulatory          
organization 7as defined in section     
#c7;a7 of the ,securities ,exchange ,act
 of #aicd71 or the securities division  
of a ,state1 the ,district of ,columbia1
 or a territory of the ,united ,states  
or the equivalent division responsible  
for licensing or registration of        
individuals in connection with          
securities activities2 and  7ii7 in good
 standing with respect to such licence  
or registration2  7,e7 any natural      
person the ,commission determines1 by   
regulation1 to have demonstrable        
education or job experience to qualify  
such person as having professional      
knowledge of a subject related to a     
particular investment1 and whose        

education or job experience is verified 
by a self-regulatory organization 7as   
defined in section #c7;a7 of the        
,securities ,exchange ,act of #aicd72 or
  4  7b7 ,rulemaking ,not later than    
#ahj days after the date of enactment of
 this ,act1 the ,securities and         
,exchange ,commission shall revise the  
definition of accredited investor under 
,regulation ,d 7#ag ,,cfr #bcj4ejj et   
seq47 to conform with the amendments    
made by subsection 7a74  ,june #c1      
#bjbe,reported with an amendment1       
committed to the ,committee of the      
,whole ,house on the ,state of the      
,union1 and ordered to be printed