Bill > SB220

This bill amends the Arkansas Securities Act to create a new intrastate securities offering exemption called the "Invest Arkansas Exemption Act," which allows Arkansas-based businesses to raise capital with certain regulatory protections. The exemption permits for-profit businesses registered with the Secretary of State to raise up to $10 million (increased from $1 million) through securities offerings, with individual non-accredited investors limited to investing $100,000 per transaction. The bill introduces several key requirements, including that issuers must file a detailed proof of exemption with the state commissioner at least 10 days before selling securities, deposit investor funds in an Arkansas bank, use funds as represented to investors, and inform investors about securities resale limitations. The exemption comes with strict conditions, such as prohibiting sales by investment companies, companies subject to certain reporting requirements, or "blind pool" companies without defined business operations. Issuers must also pay a $100 filing fee and cannot be disqualified under specific federal securities regulations. The exemption can be used in conjunction with certain other limited exemptions, and does not exempt issuers from antifraud provisions. The bill aims to make it easier for local Arkansas businesses to raise capital while maintaining investor protections.