Friday, March 28, 2014
While the SEC continues to work the JOBS act through their process alongside FINRA developing the details for how to enforce it, states throughout the US are enacting intrastate crowdfunding laws of their own. Kansas, Georgia, and Indiana have already enacted their own laws with Wisconsin, Washington state, Maine, and North Carolina about to enact their own version.
These intrastate crowdfunding laws are typically lower cost variations of the JOBS act that the SEC is currently working on. For example, the SEC version requires a company raising $1M to provide audited financial statements. Intrastate laws typically require $1M raises to provide CEO approved financial statements.
Texas will soon enact their crowdfunding laws through the state securities board. Since Texas' state securities board handles regulations regarding the sale of securities they don't have to go through the state legislature to make such a decision. A hearing is set for May 21, 2014, for comment on the proposed legislation with a ruling expected shortly thereafter.
For startups seeking funding, they can now pursue a much larger population of investors -- ie, the non-accredited investor. The Texas intrastate crowdfunding law will keep the state on the forefront of the low-cost model for starting and running a business.
It'll be here in Texas, before you know it.