By: Johnson H.B. No. 1629
A BILL TO BE ENTITLED
AN ACT
relating to crowdfunding portal regulation for the purpose of small
business development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes) is amended by adding Section 44 to
read as follows:
Sec. 44. CROWDFUNDING. (a) The Board shall adopt rules to
regulate and facilitate online intrastate crowdfunding.
(b) The Board shall adopt rules specific to authorized small
business development entities.
(c) In this subsection, "authorized small business
development entity" means:
(1) a Type A corporation authorized under Chapter 504,
Local Government Code;
(2) a Type B corporation authorized under Chapter 505,
Local Government Code;
(3) a nonprofit organization authorized by an agency
or authority of the federal government to distribute housing and
community development block grants;
(4) a municipality corporation; or
(5) the Texas Veterans Commission.
(d) The rules that are specific to authorized small business
development entities as defined by Subdivision (1) must:
(1) minimize any delay between raising and accessing
capital funds through crowdfunding;
(2) allow authorized small business development
entities to list offers in their web portals in which they are
financially interested;
(3) allow authorized small business development
entities and their portals to generally promote offers without
offering individualized investment advice;
(4) allow investors who purchase securities through
web portals operated by an authorized small business development
entity to have restrictions at least double the amount placed on
investors who purchase securities through web portals operated by a
non-authorized small business development entity;
(5) allow authorized small business development
entities to subcontract the operations of a crowdfunding web portal
to a third party; and
(6) limit the offerings of an authorized small
business development entity's web portal to the authorized small
business development entity's service area.
(e) The Board is allowed to create other requirements, as
they deem necessary by adopting rules.
SECTION 2. This Act takes effect September 1, 2015.