Capital Formation Legislative Update

On March 22, 2016, Congressman French Hill introduced a bill, HR 4831, that would amend the 100-holder restriction on S corporations in the limited case of shares acquired through crowdfunded offerings or Regulation A offerings.  The text of the proposed bill is available here:  https://hill.house.gov/sites/hill.house.gov/files/wysiwyg_uploaded/HILLAR_027_xml%20-%20S-Corp_0.pdf.

On March 23, 2016, Congressman Tom Emmer introduced a bill, HR 4850, called the Micro Offering Safe Harbor Act, which would amend the Securities Act to create a limited exemption for non-public offerings that would allow a "non-public," micro-offering provided that each investor has a pre-existing substantive relationship with the issuer, there are fewer than 35 purchasers, and the amount raised does not exceed $500,000.  The text of the proposed bill is available here:  https://emmer.house.gov/sites/emmer.house.gov/files/Micro%20Offering%20Safe%20Harbor%20Act%20%281%29.pdf.  It is not clear