STATE OF THE STATES – LIST OF CURRENT ACTIVE AND PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS

State-Laws2I don’t know about the rest of you out there but I have not yet found a website that accurately identifies each of the states that have currently enacted, or are in some stage of enacting, an intrastate crowdfunding exemption. As a result, for everyone’s sake (including my own) I decided to scour the internet and create my own list. I will attempt to keep this list as current as possible so please bookmark this page (or better yet, subscribe to my blog).

Also, if you have any comments (e.g. I missed something, a link is broken, my hair looks great in my profile picture, etc.) please feel free to contact me.

Now, without further ado, the LIST:

Map - 11-19 - w IL

DISCLAIMER: Nothing in this post is, or is intended to be, legal advice. The information herein is provided for informational purposes ONLY  and YOU SHOULD CONSULT WITH YOUR ATTORNEY before using any of this information. Further, I make NO REPRESENTATION OR WARRANTY as to the accuracy or use of any of information contained in this post and I shall have NO DUTY to update any of the information below.

ENACTED INTRASTATE CROWDFUNDING EXEMPTIONS (for a summary chart click HERE)

As of November 2014, the following thirteen (13) states have either enacted separate intrastate crowdfunding exemptions or have enacted amendments to their existing blue sky laws to permit some type of intrastate crowdfunding:

  1. Alabama Crowdfunding Exemption (AL):
    1. See Senate Bill 44;
  2. Colorado Crowdfunding Exemption (CO):
    1. Via existing § 11-51-304(6);
    2. See also HB 14-1079;
    3. See also Rule 51-3.3;
    4. See also Colorado advisory response letter;
  3. Georgia Crowdfunding Exemption (GA):
    1. See GA Comp. R. & Regs. 590-4-2-.08, et seq.;
    2. See also Understanding the Invest Georgia Exemption“;
  4. Idaho Crowdfunding Exemption (ID) (Note: Decided on a case by case basis):
    1. See Code 30-14- 203;
    2. See also Code 30-14-301;
    3. See also Administrative Action;
  5. Indiana Crowdfunding Exemption (IN):
    1. See Senate Bill 375;
    2. See also IC 23-19-2-2(27);
    3. See also Emergency Rule LSA Document #14-248(E);
    4. See also “Crowdfunding – Invest In Indiana“;
  6. Kansas Crowdfunding Exemption (KS):
    1. See K.A.R. 81-5-21, as modified by Special Order dated June 21, 2013;
  7. Maine Crowdfunding Exemption (ME):
    1. See 32 MRSA § 16304, sub-§6-A;
  8. Maryland Crowdfunding Exemption (MD) (Note: Debt crowdfunding only):
    1. See SB811;
    2. See also HB1243;
  9. Michigan Crowdfunding Exemption (MI):
    1. See Public Act 264;
  10. Tennessee Crowdfunding Exemption (TN):
    1. See SB1481;
  11. Texas Crowdfunding Exemption (TX):
    1. See §115.19 (Texas Crowdfunding Portal Registration and Activities);
    2. See §139.25 (Intrastate Crowdfunding Exemption);
    3. See also the Texas State Securities Board website;
  12. Washington Crowdfunding Exemption (WA):
    1. See House Bill 2023;
  13. Wisconsin Crowdfunding Exemption (WI):
    1. See Wis. Stat. § 551.202(26);
    2. See also Wis. Stat. § 551.102(4m);
    3. See also Wis. Stat. § 551.205.

PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS (for a summary chart click HERE)

As of November 2014, the following fifteen (15) states are in various stages of enacting/considering legislation regarding an intrastate crowdfunding exemption:

  1. Alaska Proposed Crowdfunding Exemption (AK):
    1. See also HB 308;
    2. See also HB 303 (Note: Not yet enacted);
  2. Arkansas Proposed Crowdfunding Exemption (AR) (Note: Technically not an “intrastate exemption”; Provides only for state exemption for Title III crowdfunding):
    1. See SB 665;
  3. California Proposed Crowdfunding Exemption (CA):
    1. See Assembly Bill 2096;
  4. Connecticut Proposed Crowdfunding Exemption (CT) (Note: Authorizing study only):
    1. See HB 5577;
    2. See also this article;
  5. District of Columbia Proposed Crowdfunding Exemption (DC):
    1. See Proposed rules (26 DCMR 250).
  6. Illinois Proposed Crowdfunding Exemption (IL)MY FAVORITE!!
    1. See the intrastate exemption proposed by ME at www.illinoiscrowdfundingnow.com (currently without a sponsor);
  7. Kentucky Proposed Crowdfunding Exemption (KY):
    1. TBD; Per Representative Steve Riggs of Louisville, Kentucky (the sponsor of the proposed intrastate crowdfunding exemption), the proposed bill has not been finalized yet but the intent is to model it after the intrastate crowdfunding exemption currently enacted in Indiana.
  8. Missouri Proposed Crowdfunding Exemption (MO):
    1. See HB 1736;
  9. New Jersey Proposed Crowdfunding Exemption (NJ):
    1. See SB 712;
  10. New Mexico Proposed Crowdfunding Exemption (NM):
    1. See proposed rules;
    2. See also Section 58-13C-202X of the New Mexico Securities Act;
    3. See also New Mexico Administrative Rules NMAC § 12.11.1, et seq.
  11. Oregon Proposed Crowdfunding Exemption (OR):
    1. See proposed rules;
    2. See also purpose of proposed exemption;
  12. Pennsylvania Proposed Crowdfunding Exemption (PA) (Note: Technically not an “intrastate exemption”; Provides only for state exemption for Title III crowdfunding):
    1. See Senate Bill 1045;
  13. South Carolina Proposed Crowdfunding Exemption (SC):
    1. See H. 479;
    2. See also Invest SC Exemption;
  14. Utah Proposed Crowdfunding Exemption (UT):
    1. See HB 142; and
  15. Virginia Proposed Crowdfunding Exemption (VA):
    1. See SB 351;
    2. See also HB 880.

REJECTED PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS

As of November 2014, the following two (2) states have voted down proposed legislation regarding an intrastate crowdfunding exemption:

  1. Florida Proposed Crowdfunding Exemption (FL):
    1. See H1299 (Note: H1299 currently dead);
    2. See also SB 1596;
  2. North Carolina Proposed Crowdfunding Exemption (NC):
    1. See HB680 (Note: HB680 currently dead);
    2. See also the exemption proposal website;

About Anthony Zeoli

Anthony Zeoli is an experienced transactional attorney with a national practice. Specializing in the areas of securities, commercial finance, real estate and general corporate law, his clients range from individuals and small privately held businesses to multi-million dollar entities. Mr. Zeoli is also an industry-recognized crowdfunding and JOBS Act expert and current member of CFIRA (Crowdfund Intermediary Regulatory Advocates) who, most recently, has drafted a bill to allow for an intrastate crowdfunding exemption in Illinois, a copy of which can be found on his website: IllinoisCrowdfundingNow.com. Anthony is also currently actively involved with the entrepreneurship program at the University of Illinois at Chicago as both a mentor and a student advisor and is an active advisory board member of the New York Distance Learning Association (NYDLA).
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12 Responses to STATE OF THE STATES – LIST OF CURRENT ACTIVE AND PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS

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  10. Anthony, this is a great resource. Our librarian spent the better part of a morning trying to hunt down the various statutes and nearly ran screaming from the building. Not an easy task. Then she found your posting. Kudos. Regarding Maine, there are proposed rules that have been published by the Maine Office of Securities (see http://www.maine.gov/pfr/securities/laws_rules.htm under “Proposed Rulemaking regarding Short Form Seed Capital Registration.” Unlike other States, the Maine crowdfunding initiative is based on Rule 504 and a short-form state registration. A far more stable platform for crowdfunding than fussy Rule 147, in my view. — Greg Fryer, Verrill Dana, LLP, Portland, Maine

  11. Erin Ely says:

    This is a great resource, love what you’re doing here. Oregon is getting ready to pass their crowdfunding law in Jan 2015 – http://www.oregon.gov/oprd/HCD/SHPO/docs/2014MSConf/OregonCrowdfunding.pdf

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