AR HB1890

Establishes an Arkansas crowdfunding exemption allowing in-state businesses to raise capital online from Arkansas residents through small securities offerings without full registration under state securities laws.

Requires investors and issuers to be Arkansas residents or entities formed under Arkansas law, with issuers using at least 80% of proceeds in Arkansas.

Creates regulatory framework for "online intermediaries" to facilitate crowdfunding offerings, including filing requirements, operational restrictions, and prohibition on investment advice or sales commissions based on transaction amounts.

Limits individual non-accredited investor contributions to $5,000 per offering, with total offering caps of $1,000,000 (or $2,000,000 with audited financials) and mandatory escrow arrangements for investor funds.

Requires issuers to provide quarterly reports to investors detailing executive compensation and financial condition, with disclosure documents warning of high-risk, illiquid investments subject to resale restrictions.