VA SB542 | 2020 | Regular Session


Spectrum: Partisan Bill (Democrat 2-0)
Status: Enrolled on February 26 2020 - 75% progression
Action: 2020-02-26 - Bill text as passed Senate and House (SB542ER)
Text: Latest bill text (Enrolled) [HTML]


Securities Act; crowdfunding exemption. Repeals the sunset provision on the existing measure that authorizes the 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 of the Securities Act. These crowdfunding provisions, which were enacted in 2015, are currently scheduled to expire on July 1, 2020. The measure also broadens the existing exemption to apply to offerings conducted in accordance with Rule 147A adopted by the U.S. Securities Exchange Commission (SEC). Because Rule 147A does not require the issuer of the securities to be incorporated or organized in the same state where the offering occurs, the measure creates a carve-out for offerings under Rule 147A from the existing requirement that the issuer be formed, organized, or existing under the laws of the Commonwealth. Additionally, the measure provides that the crowdfunding exemption is available for both equity securities and debt offerings, including subordinated debt. Current Commission regulations prohibit the use of the exemption for debt offerings.

Tracking Information

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Securities Act; equity crowdfunding exemption.


Roll Calls

2020-02-21 - House - House: VOTE: Block Vote Passage (98-Y 0-N) (Y: 97 N: 0 NV: 2 Abs: 0) [PASS]
2020-02-18 - House - House: Reported from Labor and Commerce (21-Y 0-N) (Y: 21 N: 0 NV: 1 Abs: 0) [PASS]
2020-02-11 - Senate - Senate: Passed Senate (40-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 0) [PASS]
2020-02-11 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 0) [PASS]
2020-02-11 - Senate - Senate: Constitutional reading dispensed (40-Y 0-N) (Y: 39 N: 0 NV: 0 Abs: 0) [PASS]
2020-02-10 - Senate - Senate: Reported from Commerce and Labor with substitute (15-Y 0-N) (Y: 14 N: 0 NV: 0 Abs: 0) [PASS]


2020-02-26SenateBill text as passed Senate and House (SB542ER)
2020-02-21HouseVOTE: Block Vote Passage (98-Y 0-N)
2020-02-21HousePassed House BLOCK VOTE (98-Y 0-N)
2020-02-21HouseRead third time
2020-02-20HouseRead second time
2020-02-18HouseReported from Labor and Commerce (21-Y 0-N)
2020-02-14HouseReferred to Committee on Labor and Commerce
2020-02-14HouseRead first time
2020-02-14HousePlaced on Calendar
2020-02-11SenatePassed Senate (40-Y 0-N)
2020-02-11SenateConstitutional reading dispensed (40-Y 0-N)
2020-02-11SenateEngrossed by Senate - committee substitute SB542S1
2020-02-11SenateCommittee substitute agreed to 20106798D-S1
2020-02-11SenateReading of substitute waived
2020-02-11SenateRead second time
2020-02-11SenateConstitutional reading dispensed (40-Y 0-N)
2020-02-10SenateCommittee substitute printed 20106798D-S1
2020-02-10SenateReported from Commerce and Labor with substitute (15-Y 0-N)
2020-01-07SenateReferred to Committee on Commerce and Labor
2020-01-07SenatePrefiled and ordered printed; offered 01/08/20 20102490D

Code Citations

ChapterArticleSectionCitation TypeStatute Text
131514(n/a)See Bill Text

Virginia State Sources

Bill Comments