The California assembly has passed their intrastate crowdfunding exemption. The bill was passed unanimously on the assembly floor on Monday, May 19th. According to the California Legislative information 75 representatives voted for the bill with 4 “no votes recorded”. This success matches the reception the crowdfunding bill received in both the Appropriations Committee and the Assembly Banking and Finance Committee where the bill passed both times without dissent.
The legislation, in its current form, now moves onto the California Senate where it is expected to receive some challenges as it is rumored the AARP will be opposing the bill. Expectations remain positive the bill will be eventually passed into law.
Assembly Bill 2096, sponsord by Assembly Member Al Muratsuchi, is significant because of the ongoing delays regarding Title III of the JOBS ACT which legalized retail crowdfunding. Eight states have already passed intrastate crowdfunding laws seeking to gain an edge by allowing new technology to raise or “crowdfund” capital via the internet. While the process is inevitable, the disruptive innovation challenges years of process that has been shepherded by one of the largest industries in the country: banking and finance. California boasts the 8th largest economy in the world on par with many developed nations. A standalone intrastate crowdfunding exemption could boost their competitive stature even further. With many questions remaining at the federal level – with all forms of crowdfunding – many more states are considering a similar path.