[Page S3759]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4037. Mr. BOND (for himself, Mr. Warner, Mr. Brown of 
Massachusetts, and Ms. Cantwell) submitted an amendment intended to be 
proposed to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for 
himself and Mrs. Lincoln)) to the bill S. 3217, to promote the 
financial stability of the United States by improving accountability 
and transparency in the financial system, to end ``too big to fail'', 
to protect the American taxpayer by ending bailouts, to protect 
consumers from abusive financial services practices, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 387, strike line 13 and all that follows through 
     page 388, line 3, and insert the following:

     SEC. 412. ADJUSTING THE ACCREDITED INVESTOR STANDARD.

       (a) In General.--The Commission shall adjust any net worth 
     standard for an accredited investor, as set forth in the 
     rules of the Commission under the Securities Act of 1933, so 
     that the individual net worth of any natural person, or joint 
     net worth with the spouse of that person, at the time of 
     purchase, is more than $1,000,000 (as such amount is adjusted 
     periodically by rule of the Commission), excluding the value 
     of the primary residence of such natural person, except that 
     during the 4-year period that begins on the date of enactment 
     of this Act, the net worth standard shall be $1,000,000, 
     excluding the value of the primary residence of such natural 
     person.
       (b) Review and Adjustment.--
       (1) Initial review and adjustment.--
       (A) Initial review.--The Commission may undertake a review 
     of the definition of the term ``accredited investor'', as 
     such term applies to natural persons, to determine whether 
     the requirements of the definition, excluding the requirement 
     relating to the net worth standard described in subsection 
     (a), should be adjusted or modified for the protection of 
     investors, in the public interest, and in light of the 
     economy.
       (B) Adjustment or modification.--Upon completion of a 
     review under subparagraph (A), the Commission may, by notice 
     and comment rulemaking, make such adjustments to the 
     definition of the term ``accredited investor'', excluding 
     adjusting or modifying the requirement relating to the net 
     worth standard described in subsection (a), as such term 
     applies to natural persons, as the Commission may deem 
     appropriate for the protection of investors, in the public 
     interest, and in light of the economy.
       (2) Subsequent reviews and adjustment.--
       (A) Subsequent reviews.--Not earlier than 4 years after the 
     date of enactment of this Act, and not less frequently than 
     once every 4 years thereafter, the Commission shall undertake 
     a review of the definition, in its entirety, of the term 
     ``accredited investor'', as such term applies to natural 
     persons, to determine whether the requirements of the 
     definition should be adjusted or modified for the protection 
     of investors, in the public interest, and in light of the 
     economy.
       (B) Adjustment or modification.--Upon completion of a 
     review under subparagraph (A), the Commission may, by notice 
     and comment rulemaking, make such adjustments to the 
     definition of the term ``accredited investor'', as such term 
     applies to natural persons, as the Commission may deem 
     appropriate for the protection of investors, in the public 
     interest, and in light of the economy.
       On page 388, line 14, strike ``1 year'' and insert ``3 
     years''.
       On page 998, strike line 12 and all that follows through 
     page 1001, line 25, and insert the following:

     SEC. 926. DISQUALIFYING FELONS AND OTHER ``BAD ACTORS'' FROM 
                   REGULATION D OFFERINGS.

       Not later than 1 year after the date of enactment of this 
     Act, the Commission shall issue rules for the 
     disqualification of offerings and sales of securities made 
     under section 230.506 of title 17, Code of Federal 
     Regulations, that--
       (1) are substantially similar to the provisions of section 
     230.262 of title 17, Code of Federal Regulations, or any 
     successor thereto; and
       (2) disqualify any offering or sale of securities by a 
     person that--
       (A) is subject to a final order of a State securities 
     commission (or an agency or officer of a State performing 
     like functions), a State authority that supervises or 
     examines banks, savings associations, or credit unions, a 
     State insurance commission (or an agency or officer of a 
     State performing like functions), an appropriate Federal 
     banking agency, or the National Credit Union Administration, 
     that--
       (i) bars the person from--

       (I) association with an entity regulated by such 
     commission, authority, agency, or officer;
       (II) engaging in the business of securities, insurance, or 
     banking; or
       (III) engaging in savings association or credit union 
     activities; or

       (ii) constitutes a final order based on a violation of any 
     law or regulation that prohibits fraudulent, manipulative, or 
     deceptive conduct within the 10-year period ending on the 
     date of the filing of the offering statement; or
       (B) has been convicted of any felony or misdemeanor in 
     connection with the purchase or sale of any security or 
     involving the making of any false filing with the Commission.
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