Securities Act; crowdfunding exemption. (HB1360)

Introduced By

Del. Scott Taylor (R-Virginia Beach) with support from 8 copatrons, whose average partisan position is:

Those copatrons are Del. Glenn Davis (R-Virginia Beach), Del. Scott Garrett (R-Lynchburg), Del. Chris Head (R-Roanoke), Del. Mark Keam (D-Vienna), Del. David Ramadan (R-South Riding), Del. Ron Villanueva (R-Virginia Beach), Del. Joseph Yost (R-Blacksburg), Sen. Jennifer McClellan (D-Richmond)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Securities Act; Crowdfunding Virginia Exemption. Creates an exemption from the securities, broker-dealer, and agent registration requirements of the Securities Act for an offer or sale of a security by an issuer, or an individual who represents an issuer in an offer or sale, if (i) the issuer of the security is a for-profit business entity formed under the laws of the Commonwealth; (ii) the transaction meets the requirements of the federal exemption for intrastate offerings in 3(a)(11) of the Securities Act of 1933 and 17 C.F.R. 230.147; (iii) the sum of all cash and other consideration to be received for all sales of the security in reliance upon this exemption does not exceed $1 million, less the aggregate amount received for all sales of securities by the issuer within the 12 months preceding the first offer or sale made in reliance upon the exemption; (iv) the issuer does not accept more than $10,000 from any single purchaser unless the purchaser is an accredited investor as defined by 17 C.F.R. 230.501; (v) all funds received from investors are required to be deposited into a bank or depository institution authorized to do business in the Commonwealth and used in accordance with representations made to investors; (vi) the issuer files a notice with the State Corporation Commission (SCC) specifying that the issuer is conducting an offering in reliance upon this exemption and containing the names and addresses of the issuer, all persons who will be involved in the offer or sale of securities on behalf of the issuer, and the bank or other depository institution in which investor funds will be deposited; (vii) the issuer is not an investment company or subject to certain reporting requirements of the Securities Exchange Act of 1934; and (viii) the issuer informs all purchasers that the securities have not been registered and are subject to limitations on resales. The exemption shall not be available if the issuer or related person has committed specified acts, including having sold or permitted the sale through an Internet website of a security to an investor who is not a resident of the Commonwealth. The SCC shall charge a filing fee of $250 per filing, which may be increased to an amount not to exceed $500 per filing as necessary to defray the costs of administering the exemption. The measure will expire on July 1, 2020. Read the Bill »


Bill Has Passed


12/03/2014Prefiled and ordered printed; offered 01/14/15 15100473D
12/03/2014Referred to Committee on Commerce and Labor
01/12/2015Impact statement from SCC (HB1360)
01/20/2015Assigned C & L sub: Subcommittee #2
01/22/2015Subcommittee recommends reporting with amendment(s) (10-Y 0-N)
01/27/2015Reported from Commerce and Labor with substitute (22-Y 0-N) (see vote tally)
01/27/2015Committee substitute printed 15104116D-H1
01/29/2015Read first time
01/29/2015Impact statement from SCC (HB1360H1)
01/30/2015Read second time
01/30/2015Committee substitute agreed to 15104116D-H1
01/30/2015Engrossed by House - committee substitute HB1360H1
02/02/2015Read third time and passed House BLOCK VOTE (99-Y 0-N)
02/02/2015VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
02/03/2015Constitutional reading dispensed
02/03/2015Referred to Committee on Commerce and Labor
02/16/2015Reported from Commerce and Labor with amendments (15-Y 0-N) (see vote tally)
02/18/2015Constitutional reading dispensed (38-Y 0-N) (see vote tally)
02/19/2015Read third time
02/19/2015Reading of amendments waived
02/19/2015Committee amendments agreed to
02/19/2015Engrossed by Senate as amended
02/19/2015Passed Senate with amendments (38-Y 0-N) (see vote tally)
02/20/2015Placed on Calendar
02/23/2015Passed by for the day
02/24/2015Senate amendments agreed to by House (99-Y 0-N)
02/24/2015VOTE: ADOPTION (99-Y 0-N) (see vote tally)
03/06/2015Bill text as passed House and Senate (HB1360ER)
03/06/2015Signed by Speaker
03/07/2015Signed by President
03/10/2015Enrolled Bill communicated to Governor on 3/10/15
03/10/2015G Governor's Action Deadline Midnight, Sunday, March 29, 2015
03/10/2015Impact statement from SCC (HB1360ER)
03/23/2015G Approved by Governor-Chapter 400 (effective 7/1/15)
03/23/2015G Acts of Assembly Chapter text (CHAP0400)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 3 clips in all, totaling 2 minutes.