SB 1217 Summary

• Amends Arizona Revised Statutes section 44-1844 to add a new exempt transaction category for Regulation A offerings under federal securities law, allowing aggregate offerings up to $75,000,000 with up to $22,500,000 from affiliates.

• Clarifies intrastate offering exemptions (paragraph 22) to include crowdfunding and virtual coin offerings, with requirements for issuer registration, residency verification, and a $5,000,000 twelve-month limit.

• Establishes that purchasers in compliant intrastate offerings are not considered underwriters unless they purchase more than 50 percent of securities offered.

• Allows parties in intrastate offerings to use binding private arbitration to resolve disputes under Arizona law.

• Exempts virtual coin exchangers from securities dealer requirements if they have good faith belief the coin is not a virtual coin offering and promptly terminate facilitation upon learning otherwise.