SB583: Bill Text

SB583,6,12 4. The text of any published notice or script for broadcast, any information to be posted on the Internet, and any printed material delivered in any solicitation of interest under this subsection begins with the disclosures and information required in, and in the format of, the solicitation of interest form prescribed by the division.

SB583,6,16 5. The offeror does not know, and in the exercise of reasonable care could not know, that any of the issuer's officers, directors, general partners, controlling persons, or affiliates are or would be disqualified from use of the registration exemption under this subsection.

SB583,6,18 6. No solicitation of interest pursuant to this subsection is made after the filing of materials required for the exemption under sub. (26).

SB583,6,24 7. No sales of the securities that are the subject of solicitations of interest under this subsection are made until 20 calendar days after the last delivery of a solicitation of interest document, scripted media broadcast, Internet post, or other media publication. For purposes of this subdivision, the last delivery date for solicitations of interest by means of the Internet is the last day on which a digital form is available for a prospective purchaser's response indicating interest.

SB583,7,3 8. During the solicitation of interest period, neither the issuer nor any person acting on its behalf accepts or solicits money, subscriptions, or commitments to purchase securities.

SB583,7,6 (b) A failure to comply with any of the requirements for exemption under par. (a) does not result in the loss of the exemption under this subsection for any offer to a particular person if the offeror demonstrates that all of the following apply:

SB583,7,8 1. The failure to comply did not pertain to a requirement directly intended to protect that particular person.

SB583,7,10 2. The failure to comply was insignificant with respect to the offering as a whole.

SB583,7,12 3. A good faith and reasonable attempt was made to comply with all requirements under par. (a).

SB583,7 Section 7. 551.202 (27) (a) of the statutes is amended to read:

SB583,7,16 551.202 (27) (a) The issuer of the security is a business entity organized under the laws of this state and authorized to do with a principal place of business in this state and that is doing business in this state.

SB583,8 Section 8. 551.202 (27) (b) of the statutes is amended to read:

SB583,7,21 551.202 (27) (b) The transaction meets the requirements of the federal exemption for intrastate offerings in section 3 (a) (11) of the Securities Act of 1933 (15 USC 77c (a) (11)) and Rule 147 147A adopted under the Securities Act of 1933 (17 CFR 230.147 230.147A).

SB583,9 Section 9. 551.202 (27) (g) of the statutes is amended to read:

SB583,8,2 551.202 (27) (g) All funds received from investors are deposited into a bank, savings bank, savings and loan association, or credit union chartered under the laws of authorized to do business in this state, and all the funds are used in accordance with representations made to investors.

SB583,10 Section 10. 551.202 (27) (j) of the statutes is amended to read:

SB583,8,7 551.202 (27) (j) The issuer informs all purchasers that the securities have not been registered under this chapter and makes the disclosures required under subsection (f) of Rule 147 147A adopted under the Securities Act of 1933 (17 CFR 230.147 230.147A (f)).

SB583,11 Section 11. 551.205 (1) (a) of the statutes is amended to read:

SB583,8,12 551.205 (1) (a) Prior to any offer or sale of securities, the issuer shall provide to the Internet site operator evidence that the issuer is organized under the laws of this state and is authorized to do has a principal place of business in this state and is doing business in this state.

SB583,12 Section 12. 551.205 (1) (b) 2. c. of the statutes is amended to read:

SB583,8,16 551.205 (1) (b) 2. c. Except as provided in sub. (3), it It does not compensate employees, agents, or other persons for the solicitation or based on the sale of securities displayed or referenced on the Internet site.

SB583,13 Section 13. 551.205 (1) (b) 2. d. of the statutes is amended to read:

SB583,8,20 551.205 (1) (b) 2. d. Except as provided in sub. (3), it is not compensated based on the amount of securities sold, and it It does not hold, manage, possess, or otherwise handle investor funds or securities.

SB583,14 Section 14. 551.205 (1) (b) 2. e. of the statutes is amended to read:

SB583,8,25 551.205 (1) (b) 2. e. Except as provided in sub. (3), the The fee it charges an issuer for an offering of securities on the Internet site is a commission, a fixed amount for each offering, a variable amount based on the length of time that the securities are offered on the Internet site, or a combination of such fixed and variable amounts.

SB583,15 Section 15. 551.205 (2) (intro.) of the statutes is amended to read:

SB583,9,13 551.205 (2) (intro.) An issuer of a security, the offer and sale of which is exempt under s. 551.202 (26), shall provide, free of charge, a quarterly report to the issuer's investors until no securities issued under s. 551.202 (26) are outstanding. An issuer may satisfy the reporting requirement of this subsection by making the information available on an Internet site if the information is made available within 45 days after the end of each fiscal quarter and remains available until the succeeding quarterly report is issued. An issuer shall file each quarterly report under this subsection with the division and, if If the quarterly report is made available on an Internet site, the issuer shall also provide a written copy of the report to any investor upon request. Upon written request from the division, the issuer shall provide a copy of the quarterly report to the division within 10 business days following the division's request. The report shall contain all of the following:

SB583,16 Section 16. 551.205 (3) of the statutes is repealed.

SB583,17 Section 17. Initial applicability.

SB583,9,17 (1) This act first applies to securities offered or sold on the effective date of this subsection.

SB583,9,18 (End)