To improve section 412 and section 926.

SA 4056. Mr. BOND (for himself, Mr. Dodd, Mr. Warner, Mr. Brown of
Massachusetts, Ms. Cantwell, Mr. Begich, Mrs. Murray, Mr. Corker, Mr.
Tester, Mr. Brownback, Mr. Baucus, and Mr. Reid) 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; 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, any 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 defined in section 230.215 of
title 17, Code of Federal Regulations, or any successor
thereto, 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 defined in
section 230.215 of title 17, Code of Federal Regulations, or
any successor thereto, 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 offer or sale; or

[[Page S3840]]

(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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