According to a report from Small Business California, the crowdfunding bill (AB 722) took another step in a positive direction as the bill came up in the Assembly Judiciary Committee and was unanimously approved (7-0).
Apparently some changes needed to be incorporated into the existing bill to appease the committee including:
- Prohibition of direct solicitation
- A 72 hour cooling period for a purchaser of a crowdfunded security.
SBC representatives did not see these amendments as causing any issues and were surprised there was a concern that solicitation would occur door-to-door or at visits to nursing homes.
Jeremy Smith, representing the State Building & Construction Trades Council of California testified in behalf of the bill indicating there should be broad based support.
Investment crowdfunding proponents attempted to enact an intrastate exemption in 2014 but politics got in the way and the bill died in the Appropriations Committee. Presently there are two investment crowdfunding bills going through the legislative process in the Golden State.