Category Archives: Florida Bar

Labor and Employment Law Annual Update

Department of Labor

Partner Ellen Leibovitch, Florida Board Certified in Labor and Employment Law, will be speaking at the 17th Labor and Employment Law Annual Update and Certification Review. The annual course, presented by the The Florida Bar Continuing Legal Education Committee and the Labor and Employment Law Section, is an advanced level course covering a wide array of labor an employment topic.  Ellen will be speaking on the Fair Labor Standards Act (FLSA) on January 26, 2017.  Given the recent law changes and case law surrounding the changes, this will be an informative panel about the FLSA.  Details about the event are below.

January 26 – 27, 2017
Gaylord Palms Resort & Convention Center
6000 W. Osceola Parkway
Kissimmee, FL 34746
(407) 586-0000

For those interested in attending, you can register for the event at the Florida Bar website.

Ellen is a Florida Board Certified Labor and Employment Attorney with Assouline & Berlowe, P.A.  For any employment and labor questions, please contact Ellen below.

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main: (561) 361-6566

Fax: (561) 361-6466

Email: EML@assoulineberlowe.com

http://www.assoulineberlowe.com/

Intellectual Property, Labor & Employment Law, Bankruptcy, Commercial Litigation, Real Estate, and Corporate Law

Miami • Ft. Lauderdale • Boca Raton

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New Overtime Regulations Impacting You

 

 

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Board Certified Labor and Employment Partner Ellen Leibovitch will be speaking on October 20, 2016 about important changes to the overtime regulations under the Fair Labor Standards Act (FLSA) that will go into effect on December 1, 2016.  Ellen, who recently appeared in the Boca Raton Observer, will discuss what employers need to know about the changes to the FLSA to protect their companies.

Please join the South Palm Beach County Bar Association’s Labor & Employment Committee on October 20, 2016 for breakfast and a panel discussion on the scope of the new rules and best practices for making sure your business is fully compliant as of day one.  To register online, click here.

Ellen is a Florida Board Certified Labor and Employment Attorney with Assouline & Berlowe, P.A.  For any employment and labor questions, please contact Ellen below.

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main: (561) 361-6566

Fax: (561) 361-6466

Email: EML@assoulineberlowe.com

http://www.assoulineberlowe.com/

Intellectual Property, Labor & Employment Law, Bankruptcy, Commercial Litigation, Real Estate, and Corporate Law

Miami • Ft. Lauderdale • Boca Raton

 

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Filed under Business Litigation, Florida Bar, Labor & Employment, labor and employment law, Uncategorized

Protect Your Tech: Florida Bar CLE Edition

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Earlier this month, I had the distinct pleasure to present at the Florida Bar Basic Technology CLE about how businesses, and their lawyers, can protect technology using Intellectual Property.  This was the first time a Florida Bar Basic CLE was focused on technology.  To keep the CLE interactive, the presentations included live tweeting using the #CLEHistory hashtag, interactive polls with the audience, and post presentation video outtakes.  The interactive nature of the CLE was perfect for a technology focused CLE.

My portion of the CLE focused on how technology is used protect intellectual property, with the focus on patents.  There are several options when determining how to use patent law to protect technology, from design patents to provisional and non-provisional utility patents.  There are key timetables and strategic considerations to assess when protecting your technology, both before and after the technology is finalized.

One of the interactive questions, pictured below,  I posted to the live audience was whether someone could put “patent pending” on a product as soon as a patent application was filed.  The question was posted during my presentation and the audience texted their results to get an immediate response to the question.  36% of the audience correctly chose the right answer of A – Yes.  Meaning you can put patent pending on a product as soon as you file a patent application.  However, the application must remain active, i.e. not abandoned, to continue marking the product as “patent pending.”  Notably, 44% of the audience thought patent pending depended on what type of patent application was filed.  This is not accurate as it does not matter if the patent application is design, provisional, or non-provisional.

assouline & belrlowe, interactive polling

There are many misconceptions about patent law and it is important to consult with a registered patent attorney to review your technology and plan to maximize your protection.  It was an honor to speak at the first Florida Bar Basic Technology CLE and I enjoyed the interactive nature of the CLE.  Check the Florida Bar CLE page as the Technology CLE will be available for download in the near future.

For questions about Intellectual Property matters involving Technology, contact  Greg Popowitz below.

ASSOULINE & BERLOWE, P.A.

213 East Sheridan Street, Suite 3

Dania Beach, Florida  33004

Main: 954.929.1899

Fax: 954.922.6662

http://www.assoulineberlowe.com/

Intellectual Property, Labor & Employment, Creditors’ Rights & Bankruptcy, Business Litigation, Corporate & Finance, Real Estate, International Law

Miami • Ft. Lauderdale • Boca Raton

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Filed under Business Litigation, commercial litigation, Copyright, Florida Bar, Intellectual Property, International Arbitration, IP Litigation, Patent Prosecution

New Changes to the FLSA and Compensation toLive-In Domestic Care Workers

Department of Labor

In December 2014, Ellen Leibovitch held a seminar to discuss changes to the Fair Labor Standards Act (FLSA) relevant to third party agencies who employ companions and live-in domestic service employees.  The new regulations – which were set to go into effect on January 1, 2015 – made the long-standing exemptions to the FLSA’s minimum wage and overtime requirements for companions and live-in domestic employees inapplicable to third-party employers (like home health care agencies).

Just days after the seminar, a federal court struck down the new regulations.  Since then, the issue has been batted around the courts, but on August 21, 2015, a federal appellate court issued a unanimous opinion affirming the validity of the new regulations.  The appellate court’s opinion became effective on October 13, 2015.  The Department of Labor (DOL) will not begin enforcement of the new rules until November 12, 2015 but, more than likely, the DOL will not begin prosecuting offenders until January 1, 2016.

For more details, go to http://www.dol.gov/whd/homecare/litigation.htm#.VilP87RgRps.email

So what does this mean to you and your businesses?  For those who have been taking a wait-and-see approach or who had hoped that everything would remain unchanged, the time to act is now.  Businesses need to come to grip with the fact that live-in domestic care workers who reside in the private household where they are employed and home-health companions are going to be subject to the FLSA’s overtime and minimum wage requirements as well as the record-keeping requirements.  Among other things, this means these workers need to be paid a minimum wage (currently $8.05 in the State of Florida but likely to increase as of January 1, 2016), that employers need to maintain accurate records of the hours such employees work each day and each week and that overtime must be paid for all hours worked in excess of 40 each week.

Please note that these new rules apply only to employees, not independent contractors.

For additional information about these changes, please contact Ellen M. Leibovitch below:

Ellen M. Leibovitch

Florida Board Certified Labor and Employment Attorney

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main:  (561) 361-6566

Fax: (561) 361-6466

Email: EML@assoulineberlowe.com

http://www.assoulineberlowe.com/

Intellectual Property, Labor & Employment Law, Bankruptcy, Commercial Litigation, Real Estate, and Corporate Law

Miami • Ft. Lauderdale • Boca Raton

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Is Your Data Security Program Lost in the Weeds?

Assouline & Berlowe

“I.R.S. Adds New Safeguards to Thwart Identity Theft and Fraud”

 “Federal Data Compromised at OPM and Interior; Could Affect 4 Million People”

 “North Shore (University Hospital) Warns About 18,000 Patients of Potential Data Breach”

 “Massive Data Breach Affects Hundreds of Miami-Dade County”

As you check your incoming morning email; malware surreptitiously checks your every keystroke and monitors your cyber movements. At your doctor’s office you provided enumerable consent and other extremely personal and confidential information forms; then, within earshot of waiting patients, the receptionist announces your social security number to a colleague. You buy a new condo, providing the Condo Association Board an approval application with your family’s personal and financial history; now your neighbors “know your business!”

The headlines are real; the scenarios occur every day. Scenarios endemic to the hyperbolic expansion of technological innovation, the public’s enchantment and dependence on B2C and social media, and the progressively steep upward trend in information creation and cyber monitoring. Information (“Data”) creates Knowledge; and Knowledge is Power! In the era of “Big Data,” confidential personal and proprietary business Data, mishandled or acquired without authorization by third parties, may have disastrous consequences to the Data Owner.

“In the day,” businesses focused Document (Record) Retention Policies and Programs. Internally-focused initiatives to identify proprietary or sensitive documented information required for possible future use (e.g., government regulations, tax audits); that may be needed to respond to customer, client, or other third-party complaints or litigation (e.g., contracts and collateral documents); and for general historical or other purposes (e.g., corporate or business records). Today, with Information Technology’s potentially illegitimate intrusion in personal privacy, these initiatives must also include externally-focused component to protect those privacy interests.

A company (or other Data Custodian with legitimately acquired Data Owner information) should establish a Data Breach Security Plan with policies and practices for the handling of sensitive Data Owner information. The Plan identifies and “ring-fences” sensitive Data Owner information; sets parameters for limited or “need-to-know access;” identifies potential live and IT systems Data Breach threats; and establishes a Data Breach Response Procedure to adequately notify a Data Owner where his or her information has been compromised.

Florida, along with a number of states, however, have recently begun to actively legislate and establish statutory schemes. Florida’s Information Protection Act of 2014 (“Security of Confidential Information) requires businesses, and government, to take “reasonable measures to protect and secure personal information.” If a Florida business collects personal information, it is now required to establish and maintain a Data Security Program. Once the business, or government entity, acquires personally identifiable information, it is obliged to safeguard the information; and, where appropriate, have a prescribed plan for the information’s destruction or return.  Specified Data includes:

  • social security number;
  • driver’s license or identification card number, passport number, military identification number, or other similar personal identifier issued on a government document used to verify identity;
  • financial account number or credit or debit card number, in combination with any required security code, access code, or password that is necessary to permit access to an individual’s financial account;
  • financial account number or credit or debit card number, in combination with any required security code, access code, or password that is necessary  to permit access to an individual’s financial account;
  • information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional; or
  • health insurance policy number or subscriber identification number as well as any unique identifier used by a health insurer to identify that person.

Under the Statute, a Florida business or other “covered entity” ” must notify the Attorney General, in writing, no later than 30 days after a Data Breach or possible Data Breach. That is “any breach of security affecting 500 or more individuals in this state.” The notice must include:

When a Data Breach occurs; that is where there is “unauthorized access of data in electronic form containing personal information.” More broadly, when specific third-party “sensitive, protected, or confidential information has potentially, been viewed, stolen, or used by an individual not so authorized.” For example, where a physician’s laptop is lost or stolen; or where a company IT system has been “hacked.” Parenthetically, insurance companies are now offering Data Breach Insurance.

  1. A synopsis of the events surrounding the breach
  2. The number of individuals in this state who were or potentially have been affected by the breach
  3. Any services related to the breach being offered or scheduled to be offered, without charge, by the covered entity to individuals, and instructions as to how to use such services
  4. A copy of the notice to the individuals affected by the breach or an explanation of the other actions taken to notify the individuals affected by the breach
  5. The name, address, telephone number, and e-mail address of the employee or agent of the covered entity from whom additional information may be obtained about the breach

The Attorney General may also request additional information including: (a) a police report, incident report, or computer forensics report; (b) a copy of the policies in place regarding breaches; and (c) steps that have been taken to rectify the breach.

Although the Statute does not allow a private right of legal action, a Data breach is considered “deceptive trade practice.” Within the jurisdiction of the Department of Legal Affairs, violations are subject to injunctive relief and the following civil penalties: for failure to notify Data Owners:

  1. In the amount of $1,000 for each day up to the first 30 days following any violation and, thereafter, $50,000 for each subsequent 30-day period or portion thereof for up to 180 days; and
  2. If the violation continues for more than 180 days, in an amount not to exceed $500,000.

The civil penalty assessed is for each breach, not for each individual affected by the breach.

Data Security and Data Privacy should be a major concern to individuals and business alike. The law in this area is evolving. It has become an important focus of business law practice.

For more information on Data Security Programs matters, please contact:

Carl H. Perdue, JD, LLM
Senior Counsel and Partner
Business and Finance

The above material is for information purposes only; and is not to be considered legal or financial advice.

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main:  (561) 361-6566

Fax: (561) 361-6466

Email: CHP@assoulineberlowe.com

http://www.assoulineberlowe.com/

 

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Filed under Business Litigation, commercial litigation, Corporate Law, Florida Bar, Intellectual Property, Labor & Employment, labor and employment law

Is Your Data Security Program Lost in the Weeds?

Assouline & Berlowe

“I.R.S. Adds New Safeguards to Thwart Identity Theft and Fraud”

 “Federal Data Compromised at OPM and Interior; Could Affect 4 Million People”

 “North Shore (University Hospital) Warns About 18,000 Patients of Potential Data Breach”

 “Massive Data Breach Affects Hundreds of Miami-Dade County”

As you check your incoming morning email; malware surreptitiously checks your every keystroke and monitors your cyber movements. At your doctor’s office you provided enumerable consent and other extremely personal and confidential information forms; then, within earshot of waiting patients, the receptionist announces your social security number to a colleague. You buy a new condo, providing the Condo Association Board an approval application with your family’s personal and financial history; now your neighbors “know your business!”

The headlines are real; the scenarios occur every day. Scenarios endemic to the hyperbolic expansion of technological innovation, the public’s enchantment and dependence on B2C and social media, and the progressively steep upward trend in information creation and cyber monitoring. Information (“Data”) creates Knowledge; and Knowledge is Power! In the era of “Big Data,” confidential personal and proprietary business Data, mishandled or acquired without authorization by third parties, may have disastrous consequences to the Data Owner.

“In the day,” businesses focused Document (Record) Retention Policies and Programs. Internally-focused initiatives to identify proprietary or sensitive documented information required for possible future use (e.g., government regulations, tax audits); that may be needed to respond to customer, client, or other third-party complaints or litigation (e.g., contracts and collateral documents); and for general historical or other purposes (e.g., corporate or business records). Today, with Information Technology’s potentially illegitimate intrusion in personal privacy, these initiatives must also include externally-focused component to protect those privacy interests.

A company (or other Data Custodian with legitimately acquired Data Owner information) should establish a Data Breach Security Plan with policies and practices for the handling of sensitive Data Owner information. The Plan identifies and “ring-fences” sensitive Data Owner information; sets parameters for limited or “need-to-know access;” identifies potential live and IT systems Data Breach threats; and establishes a Data Breach Response Procedure to adequately notify a Data Owner where his or her information has been compromised.

Florida, along with a number of states, however, have recently begun to actively legislate and establish statutory schemes. Florida’s Information Protection Act of 2014 (“Security of Confidential Information) requires businesses, and government, to take “reasonable measures to protect and secure personal information.” If a Florida business collects personal information, it is now required to establish and maintain a Data Security Program. Once the business, or government entity, acquires personally identifiable information, it is obliged to safeguard the information; and, where appropriate, have a prescribed plan for the information’s destruction or return.  Specified Data includes:

  • social security number;
  • driver’s license or identification card number, passport number, military identification number, or other similar personal identifier issued on a government document used to verify identity;
  • financial account number or credit or debit card number, in combination with any required security code, access code, or password that is necessary to permit access to an individual’s financial account;
  • financial account number or credit or debit card number, in combination with any required security code, access code, or password that is necessary  to permit access to an individual’s financial account;
  • information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional; or
  • health insurance policy number or subscriber identification number as well as any unique identifier used by a health insurer to identify that person.

Under the Statute, a Florida business or other “covered entity” ” must notify the Attorney General, in writing, no later than 30 days after a Data Breach or possible Data Breach. That is “any breach of security affecting 500 or more individuals in this state.” The notice must include:

When a Data Breach occurs; that is where there is “unauthorized access of data in electronic form containing personal information.” More broadly, when specific third-party “sensitive, protected, or confidential information has potentially, been viewed, stolen, or used by an individual not so authorized.” For example, where a physician’s laptop is lost or stolen; or where a company IT system has been “hacked.” Parenthetically, insurance companies are now offering Data Breach Insurance.

  1. A synopsis of the events surrounding the breach
  2. The number of individuals in this state who were or potentially have been affected by the breach
  3. Any services related to the breach being offered or scheduled to be offered, without charge, by the covered entity to individuals, and instructions as to how to use such services
  4. A copy of the notice to the individuals affected by the breach or an explanation of the other actions taken to notify the individuals affected by the breach
  5. The name, address, telephone number, and e-mail address of the employee or agent of the covered entity from whom additional information may be obtained about the breach

The Attorney General may also request additional information including: (a) a police report, incident report, or computer forensics report; (b) a copy of the policies in place regarding breaches; and (c) steps that have been taken to rectify the breach.

Although the Statute does not allow a private right of legal action, a Data breach is considered “deceptive trade practice.” Within the jurisdiction of the Department of Legal Affairs, violations are subject to injunctive relief and the following civil penalties: for failure to notify Data Owners:

  1. In the amount of $1,000 for each day up to the first 30 days following any violation and, thereafter, $50,000 for each subsequent 30-day period or portion thereof for up to 180 days; and
  2. If the violation continues for more than 180 days, in an amount not to exceed $500,000.

The civil penalty assessed is for each breach, not for each individual affected by the breach.

Data Security and Data Privacy should be a major concern to individuals and business alike. The law in this area is evolving. It has become an important focus of business law practice.

For more information on Data Security Programs matters, please contact:

Carl H. Perdue, JD, LLM
Senior Counsel and Partner
Business and Finance

The above material is for information purposes only; and is not to be considered legal or financial advice.

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main:  (561) 361-6566

Fax: (561) 361-6466

Email: CHP@assoulineberlowe.com

http://www.assoulineberlowe.com/

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Filed under Business Litigation, commercial litigation, Florida Bar, Intellectual Property, Labor & Employment

Crowdfunding: A New Way to Invest in Florida

Assouline & Berlowe - Business Law Firm - Crowdfunding

How do 4th grade entrepreneurs make their classroom solar-powered?  In today’s day and age they set up a Crowdfunding campaign.  Hoping for $800, the students raised more than $5,000 by Crowdfunding support across America and around the world.

Money is a scare commodity; and it takes effort to have investors part with it. While subjectively attractive to the project sponsor, the business thesis may not be to a potential investor. Some potential investors may not be interested in the particular business or industry sector. Others may have limited funds that are better deployed elsewhere. And yet for others, the potential project may not meet their investment criteria. For example, generally, investors target emerging growth companies over startups and mature over emerging growth companies. That universe of potential investors has been further constrained through federal and state securities regulations that forbid general solicitation of investors and require the sponsor expend substantial, and often prohibitive, transaction costs.

For the entrepreneur taking concept through to IPO, or for a businessperson expanding operations with a merger or acquisition, financing is always an issue; money is a scare commodity. Personal or retirement savings may insufficient; bank loans (with or without personal or other guarantees) could be unavailable; and family, friends, and so-called Angel investors may not be interested or able to provide project support. What is needed is a larger universe of potential financiers….Enter Crowdfunding!

“Crowdfunding is a new and evolving method to raise money using the Internet. Crowdfunding serves as an alternative source of capital to support a wide range of ideas and ventures.  An entity or individual raising funds through crowdfunding typically seeks small individual contributions from a large number of people. “

A crowdfunding campaign generally has a specified target amount for funds to be raised, or goal, and an identified use of those funds. Individuals interested in the crowdfunding campaign—members of the “crowd”—may share information about the project, cause, idea or business with each other and use the information to decide whether or not to fund the campaign based on the collective “wisdom of the crowd.”

The venture life-cycle moves from Concept to Business Plan to Startup to Sales Ramp-up to Emerging Growth Company to Exit (Buyout or IPO). Maturing businesses grow organically or through mergers and acquisitions. Each step in the process requires more capital and capital and transaction costs. The critical factor: adequate financing!

Governor Scott is expected to sign the Florida Intrastate Crowd Finance Act; amending the Florida Securities and Investor Protection Act Effective October 1, 2015, Florida-based entrepreneurs, small business owners, and others can use web-based Crowdfunding platforms as intermediaries for their intra-state funding campaigns. The Act amends Florida’s securities transactions law. A Florida entrepreneur or business person will no longer be limited to soliciting financing support from Florida “accredited” or a high net worth individual. Florida joins a growing list of states allowing the general solicitation of in-state investors through crowdfunding internet platforms.

Florida’s Office of Financial Regulation will administer the Crowdfunding Law. The Office, reporting to the Financial Services Commission, provides oversight for the State’s financial service providers. Its mission is “to protect the citizens of Florida, promote a safe and sound financial marketplace, and contribute to the growth of Florida’s economy with smart, efficient and effective regulation of the financial services industry.” The Agency’s work is divided among the Division of Consumer Finance, Division of Financial Institutions, and Bureau of Financial Investigations.

To ensure compliance with the rules and regulations of the Florida Securities and Investor Protection Act, the Division of Securities and Finance’s, Bureau of Securities Regulation examines securities dealers, investment advisers, their respective offices, and associated persons who conduct securities business in, to or from Florida. The Bureau of Financial Investigations is a criminal justice agency. It is generally responsible for conducting securities and mortgage fraud investigations.

Florida’s Crowdfunding law exempts certain “issuers” (entrepreneurs, business persons, and others) and their intermediaries (Crowdfunding Internet Platforms) from registration requirements relating to the offer and sale of certain securities. Among other things,

a. An issuer must be a for-profit business entity formed under the laws of the State, be registered with the Secretary of State, maintained its principal place of business in the State, and derive its revenue is primarily from operations in State;

b. The securities offering must be made through a registered dealer or intermediary (the Crowdfunding Internet Platform).

c. The issuer must not be company with an undefined business operation, a company that lacks business plan, a company that lacks a stated investment goal for the funds being race, or company that plans to engage in a merger or acquisition with an unspecified business entity.

d. Unless otherwise exempted by certain mitigating factors, the issuer will be disqualified from using the Crowdfunding exemption if a director, officer, person occupying a similar status or performing a similar function, or person holding more than 20% of the shares of the issuer is a so-called “Bad Actor.” That is, that person cannot have been convicted of a felony in the last 15 years or a misdemeanor in the last 5 years of crimes involving registration as a dealer, investment adviser, issuer of securities, or associated person or the application for such registration or involving moral turpitude or fraudulent or dishonest dealing.”

e. The issuer must execute an escrow agreement with the federally insured financial institution authorized to do business in Florida for the deposit of investor funds. Under the Agreement, offering proceeds will be released to the issuer only when the aggregate capital raise from all investors is equal to the target offering amount.

f. Investors can cancel an investment commitment within 3 business days before the offering deadline. This must be stated in the disclosure statement, and the issuer is required to refund to all investors if the target offering amount is not reached by the offering deadline.

g. The issuer must file a written or electronic notice of the offering with the Office of Financial Regulation that includes

i. the intermediary’s website address where the issuer’s securities will be offered;
ii. The target offering amount;
iii. A nonrefundable $200 filing fee.

h. The issuer must provide to investors and the dealer or intermediary, along with a copy to the office at the time the notice is filed, and make available to the potential investors through the dealer or intermediary, a disclosure statement containing certain material information about the issuer, the offering, and the potential risks to purchasers of the securities including a description of the Company’s physical condition.

i. For offerings, in combination with all other offerings of the issuer 12 month period, having target offering amounts of $100,000 or less, the descriptions must include the most recent income tax return filed by the insurer, if any, and a financial statement that must be certified by the principal executive officer of the issuer true and complete in all material respects.

ii. For offerings, in combination with all other offerings of the issuer within the preceding 12 month period, have target offering amounts of more than $100,000, but not more than $500,000, the description must include financial statements prepared in accordance with generally accepted accounting principles and by an independent CPA using professional standards and procedures for such review the standards and procedures established by the office, by rule, for such purpose.

iii. For offerings, in combination with the other offerings and of the issuer within the preceding 12 month period, have target offering amounts of more than $500,000, the description must include audited financial statements prepared in GAAP by an independent CPA and other requirements as the Commission may establish by rule.

Although the Florida Crowdfunding has a strict intrastate limitation, issuers will shortly have the opportunity to make their offerings nationwide. In 2012, Congress enacted the Jumpstart Our Business Startups Act (the “JOBS Act”). The Jobs Act makes it easier for an entrepreneur or company to find investors and raise capital. By easing various securities regulations, it encourages small businesses funding. Securities and Exchange Commission (SEC) has promulgated Rules under Title II (Access to Capital for Job Creators) removing the prohibition on general solicitation or general advertising for securities offerings relying on Rule 506 (considered a “Safe Harbor” for the private offering exemption of Section 4(a)(2) of the Securities Act of 1933) provided that sales are limited to accredited investors and an issuer takes reasonable steps to verify that all purchasers of the securities are accredited investors. The SEC is expected to finalize its November 5, 2013 proposed Title III (Crowdfunding) Rule this October. Until that Rule is finalized and promulgated, nationwide general solicitation is illegal.

For more information on this or other Venture Capital or Private Equity matter, please contact:

Carl H. Perdue, JD, LLM
Senior Counsel and Partner
Business and Finance

The above material is for information purposes only; and is not to be considered legal or financial advice.

ASSOULINE & BERLOWE, P.A.

1801 N. Military Trail, Suite 160

Boca Raton, Florida 33431

Main:  (561) 361-6566

Fax: (561) 361-6466

Email: CHP@assoulineberlowe.com

http://www.assoulineberlowe.com/

Intellectual Property, Labor & Employment Law, Bankruptcy, Commercial Litigation, Real Estate, and Corporate Law

Miami • Ft. Lauderdale • Boca Raton

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