The proposed bill, titled the "Invest Arkansas Exemption Act," aims to amend the Arkansas Securities Act by clarifying the conditions under which certain transactions are exempt from regulation. Key changes include the adjustment of the maximum amount that can be raised through exempt transactions from one million dollars to ten million dollars, and the increase in the maximum amount that can be accepted from individual non-accredited investors from five thousand dollars to one hundred thousand dollars. Additionally, the bill introduces new requirements for issuers, such as filing a proof of exemption with the commissioner at least ten days prior to selling securities and ensuring that all funds received from investors are deposited in a designated bank.

The bill also specifies that the exemption cannot be used in conjunction with other exemptions, except for those related to institutional investors and controlling persons of the issuer. It establishes that issuers must not be investment companies or subject to certain reporting requirements, and it reinforces the antifraud provisions of the Arkansas Securities Act. Overall, the amendments are designed to facilitate investment opportunities while maintaining regulatory oversight to protect investors.

Statutes affected:
SB 220: 23-42-504(a)
Act 236: 23-42-504(a)