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 amendments include changes to the definition of eligible issuers, increasing the maximum amount that can be raised from $1 million to $10 million, and raising the limit on individual investments from $5,000 to $100,000 unless the investor is accredited. Additionally, the bill introduces new requirements for issuers, such as filing a proof of exemption with the commissioner at least ten days before 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 sales to controlling persons of the issuer. Furthermore, it establishes that the exemption will not be available if the issuer is disqualified under certain federal regulations or if it does not comply with antifraud provisions. Overall, the bill seeks to enhance the regulatory framework for securities offerings in Arkansas while providing more flexibility for issuers and investors.

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