Securities Act; equity crowdfunding exemption.

Securities Act; crowdfunding exemption.Repeals the sunset provision on the existing measure that authorizesthe State Corporation Commission (the Commission) to adopt an exemption for limited offerings of securities by small and startup companies,known as equity crowdfunding, from the registration provisions ofthe Securities Act. These crowdfunding provisions, which were enactedin 2015, are currently scheduled to expire on July 1, 2020. The measurealso broadens the existing exemption to apply to offerings conductedin accordance with Rule 147A adopted by the U.S. Securities ExchangeCommission (SEC). Because Rule 147A does not require the issuer ofthe securities to be incorporated or organized in the same state where the offering occurs, the measure creates a carve-out for offeringsunder Rule 147A from the existing requirement that the issuer beformed, organized, or existing under the laws of the Commonwealth. Additionally, the measure provides that the crowdfunding exemptionis available for both equity securities and debt offerings, includingsubordinated debt. Current Commission regulations prohibit the useof the exemption for debt offerings.