Reportedly the crowdfunding legislation for the state of California took another positive step forward this week. The Small Business California’s Crowdfunding bill (AB 2178) passed the Assembly Banking Committee on a vote of a 11 to 1. Next step is for the Assembly Judiciary Committee to discuss and perhaps vote it onward.
This is not the first time California has attempted to pass a crowdfunding law but the prior attempts fell short of the goal. Since California represents the 7th largest economy in the world if the elected officials get it right – a crowdfunding law could be a significant exemption for the state. Of course Title III retail crowdfunding is just around the corner so let’s see if they can improve on the shortcomings in the Federal exemption.