SB220

Senate Bill 220, titled the 'Invest Arkansas Exemption Act,' proposes amendments to the Arkansas Securities Act regarding exempt transactions. The bill increases the monetary ceiling for exempt security offerings from $1 million to $10 million and raises the individual investment limit for non-accredited investors from $5,000 to $100,000. It updates federal regulatory references to the current date of January 1, 2025, and mandates that issuers file a formal 'proof of exemption' with the state commissioner 10 days prior to any sales. The bill requires investor funds to be held in an authorized bank and used according to documented representations. It also establishes strict exclusions for 'blind pools' and companies lacking defined business operations or plans. Furthermore, the legislation clarifies prohibited remuneration for brokers and details the specific disqualifications for issuers ineligible for this exemption.