Changes

July 6(1) in section 2(a), 2016by adding at the end the following:

To amend provisions “(C) which receives no compensation in the connection with such acquisition, holding, or disposition of securities laws relating to regulation crowdfunding to raise the dollar amount limit and to clarify certain requirements and exclusions for funding portals established by such Act.;

Be it enacted by the Senate and House “(D) no associated person of which receives any compensation in connection with such acquisition, holding or disposition of Representatives securities unless such person is acting as or on behalf of an investment adviser registered under the United States Investment Advisers Act of America 1940 or registered as an investment adviser in Congress assembled,the State in which the investment adviser maintains its principal office and place of business;

SECTION 1“(E) the securities of which have been issued in a transaction made pursuant to section 4(a)(6) of the Securities Act of 1933, where both the crowdfunding vehicle and the company whose securities it holds are co-issuers; “(F) which is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 CFR 227. SHORT TITLE202); “(G) the company whose securities it holds is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 CFR 227.202); and “(H) is advised by an investment adviser registered under the Investment Advisers Act of 1940 or registered as an investment adviser in the State in which the investment adviser maintains its principal office and place of business.”; and

This Act may be cited as (2) in section 3(c), by adding at the ``Fix Crowdfunding Act''.end the following:

(a) Amendments to the Securities Act of 1933.--The Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended-- (1) in section 4A(f)(3), by inserting ``by any of paragraphs (1) through (14) of'' before ``section 3(c)''; and (2) in section 4(a)(6)(B), by inserting after ``any investor'' the following: ``, other than a crowdfunding vehicle (as defined in section 2(a) of the Investment Company Act of 1940),''. (b) Amendments to the Investment Company Act of 1940.--The Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) is amended-- (1) in section 2(a), by adding at the end the following: ``(55) The term `crowdfunding vehicle' means a company-- ``(A) whose purpose (as set forth in its organizational documents) is limited to acquiring, holding, and disposing securities issued by a single company in one or more transactions and made pursuant to section 4(a)(6) of the Securities Act of 1933; ``(B) which issues only one class of securities; ``(C) which receives no compensation in connection with such acquisition, holding, or disposition of securities; ``(D) no associated person of which receives any compensation in connection with such acquisition, holding or disposition of securities unless such person is acting as or on behalf of an investment adviser registered under the Investment Advisers Act of 1940 or registered as an investment adviser in the State in which the investment adviser maintains its principal office and place of business; ``(E) the securities of which have been issued in a transaction made pursuant to section 4(a)(6) of the Securities Act of 1933, where both the crowdfunding vehicle and the company whose securities it holds are co-issuers; ``(F) which is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 CFR 227.202); ``(G) the company whose securities it holds is current in its ongoing disclosure obligations under Rule 202 of Regulation Crowdfunding (17 CFR 227.202); and ``(H) is advised by an investment adviser registered under the Investment Advisers Act of 1940 or registered as an investment adviser in the State in which the investment adviser maintains its principal office and place of business.''; and (2) in section 3(c), by adding at the end the following: ``“(15) Any crowdfunding vehicle.''”.

Section 12(g)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(6)) is amended--amended—  (1) by striking ``The Commission'' “The Commission” and inserting the following: ``“(A) In generalIN GENERAL.--The Commission''—The Commission”; (2) by striking ``section “section 4(6)'' ” and inserting ``section “section 4(a)(6)''”; and (3) by adding at the end the following: ``(B) Treatment of securities issued by certain issuers.--An exemption under subparagraph (A) shall be unconditional for securities offered by an issuer that had a public float of less than $75,000,000 as of the last business day of the issuer's most recently completed semiannual period, computed by multiplying the aggregate worldwide number of shares of the issuer's common equity securities held by non- affiliates by the price at which such securities were last sold (or the average bid and asked prices of such securities) in the principal market for such securities or, in the event the result of such public float calculation is zero, had annual revenues of less than $50,000,000 as of the issuer's most recently completed fiscal year.''.

Passed (3) by adding at the House of Representatives July 5, 2016.end the following:

KAREN LPassed the House of Representatives July 5, 2016. HAAS,

Attest: karen l. haas, Clerk.