Last week the House passed -- by a 390 to 23 margin -- the ; the acronym, not surprisingly, is the JOBS Act. The legislation actually includes five bills, several of which already had passed the House.
That's a pretty whopping margin, even if it garnered major opposition this weekend in an editorial in the New York Times.
Among other changes, amends securities regulations to define an "emerging growth company" as one with total annual gross revenues of less than $1 billion. These companies would gain a bit of flexibility in reporting requirements. For instance, they wouldn't need to present more than two years of audited financial statements in order to initiate an initial public offering. If public, they would be exempt from the requirement under Sarbanes-Oxley of having a public accounting firm attest to their internal controls.
This had passed the House in November, 407 to 17. would amend the Securities Act of 1933 to exempt from registration requirements transactions of crowdfunded (that is, sold over the Internet) securities for amounts up to $1 million, or $2 if the issuer provides potential investors with audited financial statements.
the House in November, almost unanimously (421-1), and it also amends the Securities Act of 1933, directing the SEC to exempt from its regulation some securities offerings of up to $50 million, up from $5 million currently.
would amend securities regulations, raising several thresholds that trigger securities issuers to register with the SEC. The threshold for total assets jumps from $1 million to $10 million, and number of equity security holders of record threshold increases from 500-750 to 1,000 persons.
also establishes certain thresholds for shareholder registration.
Congressional Republicans and Democrats weren't the only ones supporting the legislation. According to Representative Stephen Fincher, (R-Tenn.), the JOBS Act was by a number of groups, including the U.S. Chamber of Commerce, American Bankers Association, Financial Services Forum, the Small Business and Entrepreneurship Council and the Independent Community Bankers of America. Other groups, including the Biotechnology Industry Organization, the National Taxpayers Union, and the National Venture Capital Association, also supported provisions within the JOBS Act.
The legislation now heads . Majority Leader Harry Reid, (D-Nev.), speaking in February, signaled his support for jobs legislation. "So Democrats are moving forward with a bipartisan package of jobs bills that will spur small businesses growth. These measures will improve innovators' access to capital. And they will streamline how companies sell stock through initial public offerings or IPOs. These pieces of legislation will also protect the rights of investors....I look forward to moving these measures and our economy forward with the help of my Republican colleagues.