2017 STATE OF THE STATES – List of Current Active and Proposed Intrastate Crowdfunding Exemptions (Updated)

LAST UPDATED: August, 2017

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:

 

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 August of 2017, the following thirty-six (36) 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. See also the Alabama Securities Commission site;
  2. Alaska Crowdfunding Exemption (AK):
    1. See SB 108;
    2. See also Proposed Crowdfunding Language;
  3. Arkansas Crowdfunding Exemption (AR):
    1. See HB 1800;
  4. Arizona Crowdfunding Exemption (AZ):
    1. See HB 2591;
    2. See also SB 1450;
  5. Colorado Crowdfunding Exemption (CO):
    1. See Colorado Crowdfunding Act;
    2. See also Rule 51-3.20-51-3.32 ;
  6. Delaware (DE):
    1. See HB 327;
  7. District of Columbia Crowdfunding Exemption (DC):
    1. See Notice of Final Rulemaking (26 DCMR 250);
    2. See also Bulletin 14-SB-01-10;
  8. Florida Crowdfunding Exemption (FL):
    1. See HB 275;
    2. See also Florida Office of Financial Regulation;
  9. Georgia Crowdfunding Exemption (GA):
    1. See GA Comp. R. & Regs. 590-4-2-.08, et seq.;
    2. See also Understanding the Invest Georgia Exemption“;
  10. 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;
  11. Illinois Crowdfunding Exemption (IL)MY FAVORITE!!
    1. See HB 3429;
    2.  See also HB 3791;
    3. See also IL Rule 130.493 and 130.494;
  12. 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“;
  13. Iowa Crowdfunding Exemption (IA):
    1. See HF 632;
    2. See also Iowa Securities Act;
    3. See also Rule 191.50.90;
  14. Kansas Crowdfunding Exemption (KS):
    1. See K.A.R. 81-5-21;
    2. See also Exemption Update;
  15. Kentucky Crowdfunding Exemption (KY):
    1. See HB 76;
    2. See also KRS 292;
    3. See also Kentucky Department of Financial Institutions site;
  16. Maine Crowdfunding Exemption (ME):
    1. See 32 MRSA § 16304, sub-§6-A;
    2. See also Rule 523;
    3. See also Basis Statement;
    4. See also Maine Department of Financial Institutions site;
  17. Maryland Crowdfunding Exemption (MD) (NOTE: Appears to be debt based only):
    1. See SB811;
    2. See also Administrative Order dated May 16, 2016;
    3. See also Administrative Order dated October 1, 2014;
    4. See also Maryland Instruction Sheet;
  18. Massachusetts Crowdfunding Exemption (MA):
    1. See 950 CMR 14.402(B)(13)(o);
    2. See also Emergency Regulations;
    3. See also Issuer Q&A;
    4. See also Massachusetts Secretary of the Commonwealth site;
  19. Michigan Crowdfunding Exemption (MI):
    1. See Public Act 26
    2. See also HB 4305;
    3. See also Tips on Crowdfunding;
  20. Minnesota Crowdfunding Exemption (MN):
    1. See SF 138;
    2. See also HF 444;
    3. See also HF 328;
    4. See also MNvest.org;
  21. Mississippi Crowdfunding Exemption (MS):
    1. See Mississippi Securities Act Rules 2.04 and 7.21;
    2. See also Summary of Exemption;
    3. See also Mississippi Securities Division site;
  22. Montana Crowdfunding Exemption (MT):
    1. See HB 481;
    2. See also Montana’s Commissioner of Securities site;
  23. Nebraska Crowdfunding Exemption (NE):
    1. See LB 226
    2. See also LB 148;
  24. New Jersey Crowdfunding Exemption (NJ):
    1. See SB 712;
    2. See also Assembly Bill No. 2073;
    3. See also New Jersey Bureau of Securities site;
  25. 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;
  26. North Carolina Crowdfunding Exemption (NC):
    1. See SB 481;
    2. See also the exemption website;
    3. See also the Secretary of State website;
  27. Oregon Crowdfunding Exemption (OR):
    1. See admin rule 441-035-0070, et. seq.
    2. See also Temporary Administrative Rule;
    3. See also purpose of exemption;
  28. South Carolina Crowdfunding Exemption (SC):
    1. See final Intrastate Offering Exemption;
  29. Tennessee Crowdfunding Exemption (TN):
    1. See SB1481;
  30. 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 1629;
    4. See also the Texas State Securities Board website;
  31. Vermont Crowdfunding Exemption (VT):
    1. See Rule No. S-2014-1;
    2. See also V.S.R. § 5-2;
  32. Virginia  Crowdfunding Exemption (VA) (NOTE: Appears to be equity based only):
    1. See HB 1306;
    2. See also 21VAC5-40-190;
    3. See also the State Corporation Commission website;
  33. Washington Crowdfunding Exemption (WA):
    1. See House Bill 2023;
    2. See also House Bill 1593;
    3. See also the Department of Financial Institutions website;
  34. West Virginia Crowdfunding Exemption (WV):
    1. See Article 32 – 5;
    2. See also WVSAO website;
  35. 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;
    4. See also the Department of Financial Institutions website;
  36. Wyoming Crowdfunding Exemption (WY):
    1. See HB 0031;
    2. See also W.S. 17-4-203;
    3. See also Secretary of State website;

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

As of August of 2017, the following eight (8) states are in various stages of enacting/considering legislation regarding an intrastate crowdfunding exemption:

  1. California Proposed Crowdfunding Exemption (CA):
    1. See AB 1517;
  2. Hawaii Proposed Crowdfunding Exemption (HI):
    1. See HB 1482 H.D. 2;
  3. Missouri Proposed Crowdfunding Exemption (MO):
    1. See HB 1736;
  4. Nevada Proposed Crowdfunding Exemption (NV):
    1. See S.B. 365;
  5. New Hampshire Proposed Crowdfunding Exemption (NH):
    1. See HB 327;
  6. New York Proposed Crowdfunding Exemption (NY):
    1. See AB 7790;
  7. Oklahoma Proposed Crowdfunding Exemption (OK):
    1. See SB 1389;
  8. Ohio Proposed Crowdfunding Exemption (OH):
    1. See HB 10;

REJECTED PROPOSED INTRASTATE CROWDFUNDING EXEMPTIONS

As of August of 2017, 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 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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