I have noticed quite a bit of confusion in blogs when discussing crowdfunding, the JOBS Act, and other recent legislation regarding small business, startups, and emerging growth companies. Even respected news organizations don’t get the specifics exactly right about what this legislation actually says, so I thought I would set the record straight.
President Obama is set to sign H.R. 3606 this week. The best way to know exactly what this bill says is to read it, despite the somewhat dense language and references to other parts of U.S. law. Here is a link to the actual PDF format of H.R. 3606. This is an easier to read version I put together on my site with hyperlinks to each section. For an overview and summary of this bill and its history you can read here. These are links directly to the information provided by Congress. Some of the confusion has been that the legislative process involves a very confusing system where bills are introduced, amended, and sometimes added to existing bills. That was the case with the JOBS Act and the crowdfunding provisions. H.R. 2930 was the original crowdfunding bill that passed the U.S. House and went to the Senate, but did not actually pass the Senate. After adding and deleting portions from various amended versions similar to H.R. 2930, the crowdfunding and other provisions were all put into one bill called H.R. 3606. This passed the Senate and then went back to the U.S. House after amendments to be passed. It has passed and was forwarded to the President for signature on March 27, 2012. He is expected to sign it this week.