Democratizing Access to Capital Act of 2011
Latest action · Dec 1, 2011 Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 112-444.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedNov 2, 2011
- Passed SenateNot reached
- Passed HouseNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
Democratizing Access to Capital Act of 2011 - Amends the Securities Act of 1933 to exempt from its prohibitions against use of interstate commerce and the mails for sale (or delivery after sale) of unregistered securities, including unregistered security-based swaps, any transactions involving the issuance of securities through a crowdfunding intermediary, whether or not the transaction involves a public offering, for which: (1) the aggregate annual amount raised through the issue of the securities during any 12-month period by an incorporated entity formed under state law is $1 million or less, and (2) individual investments in the securities are limited to a maximum aggregate annual amount of $1,000.
(Crowdfunding is a method of capital formation where groups of people pool money, typically composed of very small individual contributions, and often via internet platforms, to invest in a company or otherwise support an effort by others to accomplish a specific goal.)
Sets forth criteria for the crowdfunding exemption.
Amends the Securities Act of 1934 to exclude: (1) persons holding crowdfunded securities under this Act from application of the 500-to-750 shareholder "held of record" criterion for a class of equity security subject to mandatory registration, and (2) crowdfunding intermediaries from regulation under such Act as "brokers" or "dealers."
Amends the Securities Act of 1933 to preempt state law with respect to regulation of crowdfunded securities. Subjects crowdfunding intermediaries, however, to state authority to investigate and bring enforcement actions with respect to fraud, deceit, or unlawful conduct in connection with securities or securities transactions.
Limits authority to impose fees on crowdfunded securities to: (1) the securities commission of the issuer's state of organization, or (2) any state in which purchasers of 50% or greater of the aggregate amount of the issue are residents.
Cosponsors 2
Members who signed on, in the order they did. All signed on Nov 10, 2011.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-NH | Kelly Ayotte | Nov 10, 2011 | |
| R-GA | Saxby Chambliss | Nov 10, 2011 |
Committees 1
Where it was sent and what each committee and subcommittee did with it, in order.
| Chamber | Committee | What it did |
|---|---|---|
| Senate | Banking, Housing, and Urban Affairs Committee | Referred Nov 2, 2011Hearings Dec 1, 2011 |
Actions 3
Everything that happened, newest first.
- Dec 1, 2011Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 112-444.
- Nov 2, 2011Introduced in Senate
- Nov 2, 2011Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
In the Congressional Record 4
Days the Record’s own index lists this bill, newest first, with the pages and the members it names. Pages starting H are the House, S the Senate, E Extensions of Remarks.
| Where | In the Record | Members | Date |
|---|---|---|---|
| Senate | Debate and remarks S2230 | Scott P. Brown R-MA | Mar 29, 2012 |
| Senate | Debate and remarks S1111 | Scott P. Brown R-MA | Feb 29, 2012 |
| Senate | Debate and remarks S1064 | Harry Reid D-NV | Feb 28, 2012 |
| Senate | Debate and remarks S7634 | Mitch McConnell R-KY | Nov 17, 2011 |
Research
What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.
Printed hearings 3
Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.
| Number | Hearing | Committee | Held |
|---|---|---|---|
| S. Hrg. 112-482 | SPURRING JOB GROWTH THROUGH CAPITAL FORMATION WHILE PROTECTING INVESTORS--PART II229 pages | Banking, Housing, and Urban Affairs Committee | Mar 6, 2012 |
| S. Hrg. 112-465 | EXAMINING INVESTOR RISKS IN CAPITAL RAISING122 pages | Banking, Housing, and Urban Affairs Committee | Dec 14, 2011 |
| S. Hrg. 112-444 | SPURRING JOB GROWTH THROUGH CAPITAL FORMATION WHILE PROTECTING INVESTORS-PART I127 pages | Banking, Housing, and Urban Affairs Committee | Dec 1, 2011 |
Related bills 1
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HR 2930 | Entrepreneur Access to Capital Act | Related bill | Dec 1, 2011 |
Titles 2
Every title it has carried, official and short, at each stage.
- Official Title as Introduced
- A bill to amend the securities laws to provide for registration exemptions for certain crowdfunded securities, and for other purposes.
- Short Titles as Introduced
- Democratizing Access to Capital Act of 2011
Subjects
Assigned by the Library of Congress. Policy area: Finance and Financial Sector.
Text 1
Each version as it was printed, newest first.
- Nov 2, 2011Introduced in Senate
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.
