Bill Summary for S 481 (2015-2016)

Summary date: 

Mar 26 2015
S.L. 2016-103

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 481 (Public) Filed Wednesday, March 25, 2015
AN ACT TO ENACT THE NORTH CAROLINA PROVIDING ACCESS TO CAPITAL FOR ENTREPRENEURS AND SMALL BUSINESS ACT, TO PROVIDE PUBLIC DISCLOSURE OF WRITTEN DETERMINATIONS MADE BY THE DEPARTMENT OF REVENUE, AND TO PROHIBIT CITIES FROM CHARGING FEES FOR UTILITY USE OF RIGHT‑OF‑WAY.
Intro. by Barringer, Hise, Gunn.

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Bill summary

Enacts new GS 78A-17.1 to create the "Invest NC exemption." Provides that except as otherwise provided in GS Chapter 78A, an offer or a sale of security by an issuer is exempt from the provisions of GS 78A-24 (registration requirements for securities) and GS 78A-49(d) (rules, forms, orders and hearings, governing registration requirements for securities) if it is conducted according to the specified requirements.

Adds a new subdivision (20) to GS 78A-17 to provide that any offer or sale of a security by an issuer, conducted in accordance with GS 78A-17.1, is exempt from the provisions of GS 78A-24 and GS 78A-49(d).

Specifies the 13 criteria to be met to make an offer or sale of a security by an issuer qualify for the exemption under new GS 78A-17.1. Includes setting a cap on the cash and other consideration received for all sales of securities under GS 78A-17.1. Delineates rules and procedures governing an offer of sale of a security made through an Internet web site. Sets out indexing, reporting, and fee requirements. Sets out when the exemption does not apply.

Makes conforming changes to GS 78A-49(d).

Directs the Secretary of State to adopt rules to implement the provisions of this act within 12 months of the effective date of this act. Specifies the procedure to which the Secretary is to adhere in adopting those rules. Provides that an adopted rule under this section becomes effective on the first day of the month following the month that the Secretary adopts and submits the rule to the Codifier of Rules to enter into the North Carolina Administrative Code. Effective when this act becomes law and expires 12 months after that date.

Provides that any rule adopted more than 12 months after the effective date of this act shall comply with the requirements of Article 2A of GS Chapter 150B. Becomes effective 12 months after the effective date of this act.

The remainder of this act is effective when the act becomes law.

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