An Act to exempt a particular class of securities from the Securities and Exchange Act

The bill H.R. 701, (H.R. 701) an act to amend a provision of the Securities Act of 1933 directing the Securities and Exchange Commission to add a particular class of securities to those exempted under such Act to provide a deadline for such action, was a bill introduced into the United States House of Representatives in the 113th United States Congress. It was introduced on February 14, 2013 by Rep. Patrick McHenry (R-NC). The bill would amend the Securities Act of 1933 to set a new deadline regarding domestic securities for the Securities and Exchange Commission (SEC).

Full titleTo amend a provision of the Securities Act of 1933 directing the Securities and Exchange Commission to add a particular class of securities to those exempted under such Act to provide a deadline for such action.
Introduced in113th United States Congress
Introduced onFebruary 14, 2013
Sponsored byRep. Patrick T. McHenry (R, NC-10)
Number of co-sponsors4
Effects and codifications
Act(s) affectedSecurities Act of 1933
U.S.C. section(s) affected15 U.S.C. ยง 77c(b)(2),
Agencies affectedU.S. Securities and Exchange Commission
Legislative history

Provisions/Elements of the bill

This summary is based largely on the summary provided by the Congressional Research Service, a public domain source.[1]

H.R. 701 would amend the Securities Act of 1933 to set October 31, 2013, as the deadline for the Securities and Exchange Commission (SEC) to add a class of domestic securities to those already exempted from regulation under the Securities Act of 1933. This would have to be done in accordance with a few specified terms and conditions. First, that the aggregate offering amount of all securities offered and sold within the prior 12-month period in reliance on the new exemption shall not exceed $50 million. Second, that the securities may be offered and sold publicly. Finally, that they shall not be restricted securities under federal securities laws and regulations.

Procedural history

House

H.R. 701 was introduced into the House of Representatives by Rep. Patrick McHenry (R-NC) on February 14, 2013.[1] It was referred to the United States House Committee on Financial Services, which marked it up on May 7, 2013.[2] The House Majority Leader Eric Cantor announced on Friday May 10, 2013, that H.R. 1580 would be considered the following week.[3]

Debate and discussion

According to one source, the reason for this act is to force the SEC to take action instead of continuing to delay on finalizing new "Regulation A" rules created by the Jumpstart Our Business Startups Act (JOBS Act) passed in April 2012.[4] The rules would make it easier for small businesses to get start-up capital, but have been delayed by the failure of the FEC to write the actual rules and guidelines for the process.[4]

See also

Notes/References
  1. "H.R. 701 - Summary". United States Congress. Retrieved 13 May 2013.
  2. "H.R. 701 - Committees". United States Congress. Retrieved 13 May 2013.
  3. "Majority Leader 5-13-13" (PDF). House Majority Leader. Archived from the original (PDF) on 15 October 2013. Retrieved 13 May 2013.
  4. Hoskins, Robert (February 18, 2013). "Congress Getting Fed Up with SEC Delays, Introduces New Crowdfunding Legislation to Speed Up JOBS Act Implementation". Crowdfunding Press Center. Retrieved 13 May 2013.

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