House Passes JOBS Act Deadline Bill

The House of Representatives passed a bill that sets a deadline for the SEC to implement a provision of the JOBS Act.

By a vote of 416-6, the House gave its approval to H.R. 701, a bill that directs the SEC to finalize rules by October 31 to implement a JOBS Act provision that helps startup businesses access capital. Specifically, H.R. 701 requires the SEC to implement Title IV of the JOBS Act by October 31, 2013. Title IV requires the SEC to adopt or amend regulations to encourage capital formation without requiring an SEC registration statement.

These exemptions, referred to as "Regulation A+," create a new category of public offerings exempt from SEC registration of up to $50 million raised over a 12-month period through the issuance of equity securities, debt securities or debt securities convertible or exchangeable to equity interests, including any guarantees of such securities.

Rep. Patrick McHenry (R-NC), who serves as Chairman of the Subcommittee on Oversight and Investigations, sponsored the legislation along with Reps. Anna Eshoo (D-CA), David Scott (D-GA), David Schweikert (R-AZ) and Scott Garrett (R-NJ).

See: H.R. 701 (links externally to House Financial Services Committee website).