STATE OF THE STATES – List of Current Active And Proposed Intrastate Crowdfunding Exemptions (Updated)

LAST UPDATED: July, 2016

I 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 4-16

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 July of 2016, the following thirty-one (31) 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. Arizona Crowdfunding Exemption (AZ):
    1. See HB 2591;
    2. See also SB 1450;
  3. 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. District of Columbia Crowdfunding Exemption (DC):
    1. See Notice of Final Rulemaking (26 DCMR 250);
  5. Florida Crowdfunding Exemption (FL):
    1. See HB 275;
    2. See also SB 914;
  6. Georgia Crowdfunding Exemption (GA):
    1. See GA Comp. R. & Regs. 590-4-2-.08, et seq.;
    2. See also Understanding the Invest Georgia Exemption“;
  7. 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;
  8. Illinois Crowdfunding Exemption (IL)MY FAVORITE!!
    1. See HB 3429 (as amended 3-26-15);
  9. 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“;
  10. Iowa Crowdfunding Exemption (IA):
    1. See HF 632;
  11. Kansas Crowdfunding Exemption (KS):
    1. See K.A.R. 81-5-21, as modified by Special Order dated June 21, 2013;
  12. Kentucky Crowdfunding Exemption (KY):
    1. See HB 76;
  13. Maine Crowdfunding Exemption (ME):
    1. See 32 MRSA § 16304, sub-§6-A;
  14. Maryland Crowdfunding Exemption (MD) (NOTE: Appears to be debt based only):
    1. See SB811;
    2. See also HB1243;
    3. See also Administrative Order dated October 1, 2014;
  15. Massachusetts Crowdfunding Exemption (MA):
    1. See 950 CMR 14.402(B)(13)(o);
  16. Michigan Crowdfunding Exemption (MI):
    1. See Public Act 264;
  17. Minnesota Crowdfunding Exemption (MN):
    1. See SF 138;
    2. See also HF 328;
    3. See also MNvest.org;
  18. Mississippi Crowdfunding Exemption (MS):
    1. See Mississippi Securities Act Rules (Amended and Restated Effective April 2010), Title 1, Part 14, Chapter 2, Rule 2.04;
    2. See also Mississippi Securities Act Rules (Amended and Restated Effective April 2010), Title 1, Part 14, Chapter 7, Rule 7.21;
  19. Montana Crowdfunding Exemption (MT):
    1. See HB 481;
  20. Nebraska Crowdfunding Exemption (NE):
    1. See LB 226;
  21. North Carolina Crowdfunding Exemption (NC):
    1. See SB 481;
    2. See also the exemption website;
  22. New Jersey Crowdfunding Exemption (NJ):
    1. See SB 712;
    2. See also Assembly Bill No. 2073;
  23. New Mexico 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;
  24. Oregon Crowdfunding Exemption (OR):
    1. See admin rule 441-035-0070, et. seq.;
    2. See also purpose of exemption;
  25. South Carolina Crowdfunding Exemption (SC):
    1. See H. 479;
  26. Tennessee Crowdfunding Exemption (TN):
    1. See SB1481;
  27. Texas Crowdfunding Exemption (TX):
    1. See §115.19 (Texas Crowdfunding Portal Registration and Activities);
    2. See §139.25 (Intrastate Crowdfunding Exemption);
    3. See also HB 3425 (Intrastate Equity Crowdfunding Stock Exchange);
    4. See also the Texas State Securities Board website;
  28. Vermont Crowdfunding Exemption (VT):
    1. See Rule No. S-2014-1;
  29. Virginia  Crowdfunding Exemption (VA):
    1. See HB 1306;
  30. Washington Crowdfunding Exemption (WA):
    1. See House Bill 2023;
  31. 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 July 2016, the following seven (7) 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. California Proposed Crowdfunding Exemption (CA):
    1. See AB 2178;
  3. Hawaii Proposed Crowdfunding Exemption (HI):
    1. See HB 1482 H.D. 2;
  4. Missouri Proposed Crowdfunding Exemption (MO):
    1. See HB 1736;
  5. Nevada Proposed Crowdfunding Exemption (NV):
    1. See S.B. 365;
  6. New Hampshire Proposed Crowdfunding Exemption (NH):
    1. See HB 327;
  7. West Virginia Proposed Crowdfunding Exemption (WV):
    1. See HB 2615;

REJECTED PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS

As of Julyof 2016, the following four (4) states have voted down proposed legislation regarding an intrastate crowdfunding exemption (NOTE: California, Florida and North Carolina each have introduced new legislation; See above):

  1. California Proposed Crowdfunding Exemption (CA) – (Superseded):
    1. See Assembly Bill 2096;
  2. Florida Proposed Crowdfunding Exemption (FL) – (Superseded):
    1. See H1299 (currently dead);
    2. See also SB 1596;
  3. North Carolina Proposed Crowdfunding Exemptions (NC) – (Superseded):
    1. See HB680 (currently dead);
    2. See also HB 14 (Start-Ups/NMTC Act);
    3. See also HB 305 (Jumpstart Business Startups/NMTC) (NOTE: proposed provisions with respect to intrastate Crowdfunding, are substantially identical to HB 14);
    4. See also SB 35 (Jumpstart Business Startups/NMTC) (NOTE: proposed provisions with respect to intrastate Crowdfunding, are substantially identical to HB 14);
    5. See also HB 63 (NC Intrastate Private Capital Act);
  4. Utah Proposed Crowdfunding Exemption (UT):
    1. See HB 142;

RELATED LEGISLATION

Though technically not intrastate crowdfunding exemptions, the following respective proposed state legislation do relate to crowdfunding in general:

  1. Arkansas Proposed Crowdfunding Exemption (AR) (Note: Technically not an “intrastate exemption”; Provides only for state exemption for Title III crowdfunding):
    1. See SB 665;
  2. Connecticut Proposed Crowdfunding Exemption (CT) (Note: Authorizing study only):
    1. See HB 5577;
    2. See also this article;
  3. Pennsylvania Proposed Crowdfunding Exemption (PA) (Note: Technically not an “intrastate exemption”; Provides only for state exemption for Title III crowdfunding and certain exemptions pertaining to the registration of “funding portals”):
    1. See Senate Bill 1045.
  4. Rhode Island Proposed Crowdfunding Exemption (RI) (Note: Authorizing study only):
    1. See SR 611.

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, peer-to-peer (P2P) lending and JOBS Act expert and is currently an active board member and Secretary of the CfPA (Crowdfunding Professional Association) and an active member of CFIRA (Crowdfund Intermediary Regulatory Advocates). Most recently he drafted Illinois House Bill 3420, a bill which provides for an intrastate crowdfunding exemption in Illinois and which was unanimously approved by the Illinois’ house and Senate. 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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44 Responses to STATE OF THE STATES – List of Current Active And Proposed Intrastate Crowdfunding Exemptions (Updated)

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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

  12. erinely says:

    Oregon just published their crowdfunding rule on Thursday January 15th.

    Securities – adopt: 441-035-0070, 441-035-0080, 441-035-0090, 441-035-0100, 441-035-0110, 441-035-0120, 441-035-0130, 441-035-0140, 441-035-0150, 441-035-0160, 441-035-0170, 441-035-0180, 441-035-0190, 441-035-0200, 441-035-0210, 441-035-0220, 441-035-0230

    Title III of the Jumpstart Our Business Startups Act (JOBS Act), enacted in 2012, created a federal exemption for equity crowdfunding. Federal rules under the JOBS exemption have not yet been finalized. Under the federal intrastate exemption, Oregon may enact its own exemption from securities registration for purely domestic offerings unrelated to federal law. ORS 59.035(15) provides that the Director of the Department of Consumer and Business Services may create transactional exemptions for securities through rule. This rulemaking establishes an exemption for small amounts raised by Oregon small businesses through a “community public offering” or what is generally referred to as “crowdfunding.” The rules place certain substantive restrictions on Oregon businesses relying on the exemption, such as individual investor and total offering caps. The rulemaking activity also requires disclosures be given to prospective investors and places restrictions on general advertising of the securities to the public.

    Here’s the new law: http://www.dfcs.oregon.gov/rules_statutes/new_legislation/441-035-0070.pdf

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  21. Hello
    Florida SB 914/hb 275-SJ686 has been ordred enrolled and is awaiting the signatures of the Speaker and President and finally the Governor.
    Also, Arizona SB 1450(HB2591)(CH. 185) was signed by Gov. Ducey on April 15, 2015 at the Techshop Chandler location.
    The bill in Illinois is moving along rather swiftly and the equity crowdfunding movement may reap benefits in Illinois soon. Great work on your part and keep us posted.
    Thanks for the State of The States information.

    • Thank you Stacey, I was unaware that Arizona had passed. Much appreciated.

      • Mr. Stacey Ellis says:

        Hi
        Are you accepting clients for the new Illinois Equity crowdfunding exemption(HB 3429)?
        My wife and I are interested in setting up a retail and small apparel manufacturing operation in Chicago.

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  27. WHAT A GREAT JOB !!!
    Keep up the awesome work Tony !

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