HB 1339

Abstract

Securities Act; crowdfunding exemption. Repeals the sunset provision on the existing measure that authorizes the State Corporation Commission to adopt an exemption for limited offerings of securities by small and startup companies, known as equity crowdfunding, from the registration provisions of the Securities Act. These crowdfunding provisions, which were enacted in 2015, are currently scheduled to expire on July 1, 2020. The measure also broadens the existing exemption to apply to offerings conducted in accordance with Rule 147A adopted by the U.S. Securities and Exchange Commission (SEC). Because Rule 147A does not require the issuer of the securities to be incorporated or organized in the same state where the offering occurs, the measure creates a carve-out for offerings under Rule 147A from the existing requirement that the issuer be formed, organized, or existing under the laws of the Commonwealth. This bill is identical to SB 542.

Securities Act; crowdfunding exemption.Repeals the sunset provision on the existing measure that authorizesthe State Corporation Commission to adopt an exemption for limitedofferings of securities by small and startup companies, known asequity crowdfunding, from the registration provisions of the SecuritiesAct. These crowdfunding provisions, which were enacted in 2015, arecurrently scheduled to expire on July 1, 2020. The measure also broadensthe existing exemption to apply to offerings conducted in accordancewith Rule 147A adopted by which the U.S. Securities Exchange Commission(SEC). Because Rule 147A does not require the issuer of the securitiesto be incorporated or organized in the same state where the offeringoccurs, the bill creates a carve-out for offerings under Rule 147Afrom the existing requirement that the issuer be formed, organized,or existing under the laws of the Commonwealth.