TO AMEND THE ARKANSAS SECURITIES ACT; AND TO CLARIFY EXEMPT TRANSACTIONS UNDER THE ARKANSAS SECURITIES ACT.

SB 220 (now Act 236) amends Arkansas' securities law to clarify exemptions for intrastate offerings, primarily affecting Arkansas-based businesses seeking to raise capital from local residents. The bill increases the maximum total funding allowed under the exemption from $1 million to $10 million and raises the per-investor limit from $5,000 to $100,000 (unless the investor is accredited). Key provisions require issuers to file proof of exemption with the state commissioner 10 days before sales, deposit funds in Arkansas banks, disclose unregistered status to investors, and avoid certain prohibited activities like blind pool structures. This simplifies compliance for small Arkansas businesses while maintaining investor protections and aligning with specific federal rules in effect as of January 2025.