Crowdfunding bill passes first hurdle in Colorado House on 13-0 vote

By: InnovatioNews Friday March 13, 2015 0 comments Tags: Crowdfunding, Denver, HB 15-1246, Karl Dakin, Rep. Dan Pabon, Rep. Pete Lee

 

CrowdfundingDENVER -- A proposed Colorado securities platform crowdfunding bill was approved by the House Committee on Business and Labor Affairs on a 13-0 vote Thursday in its first public hearing before the Colorado Legislature.

HB 15-1246, offered by Representatives Pete Lee and Dan Pabon, has bipartisan backing, according to Karl Dakin, director of the Colorado Capital Congress.

A full copy of the bill may be downloaded at:

http://www.leg.state.co.us/CLICS/CLICS2015A/csl.nsf/fsbillcont3/E95B3E809BD0A27387257DA20080509A?Open&file=1246_01.pdf

Dakin said the bill provides for licensing of a new participant in the Colorado capital industry called an intermediary, who may create a website or Internet platform where securities of Colorado businesses looking to raise growth capital can be sold to investors.

Under the bill, a business selling securities may raise up to $2 million with submission of audited financials or up to $1 million without audited financials, Dakin said.

The business may openly advertise the sale of its securities under the bill and an unlimited number of non-accredited investors may buy securities.

Currently, there is a limit of 35 non-accredited investors who may take part in any single securities sale.

Dakin said the Colorado Bar Association, Colorado Cleantech Industries Association, Colorado BioScience Association and the National Federation of Independent Businesses all testified in support of the bill before the committee vote.

The bill aims to widen participation of smaller investors in funding businesses while still providing protections for those small investors.

Dakin said a vote on the bill in the House is expected next week. Dakin said the bill was developed with input from the Colorado Capital Congress and is intended to improve the state's capital ecosystem.

The bill will be discussed at a meetup of the Colorado Capital Congress PBC on March 16 from 6:30-8:30 p.m. at Brooklyn's in the Pepsi Center. The event is open to the public and registration can be made at http://www.coloradocapitalcongress.com/event-1843717.
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