SB 375 Summary

• Exempts certificates and tax credits issued under Indiana's economic development chapter from classification as securities under state securities laws, effective July 1, 2014.

• Adds new transaction exemptions for securities offerings after June 30, 2014, including accredited investor offerings, intrastate offerings, and crowdfunding-style offerings through Indiana-based internet platforms.

• Establishes a $1-2 million aggregate raise limit (depending on financial audit availability) for certain Indiana-based securities offerings, with $5,000 maximum per non-accredited investor, subject to escrow requirements.

• Requires internet web site operators facilitating Indiana securities offerings to register with the state division unless they meet specific conditions (no investment advice, no fund handling, fixed fee structure, no individual security promotion).

• Mandates quarterly reporting by issuers to investors and requires detailed disclosure documents covering company information, management, ownership, security terms, risks, and use of proceeds.