Date: 03/12/2015

Final
BILL SUMMARY for HB15-1246

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Refer House Bill 15-1246 to the Committee of the WPASS



01:32 PM -- HB 15-1246

Representative Lee and Representative Pabon, sponsors, introduced House Bill 15-1246. The bill creates the Colorado Crowdfunding Act which allows Colorado residents to invest in Colorado companies through online intermediaries under a simplified regulatory regime. Crowdfunding cannot begin until the Securities Commissioner in the Department of Regulatory Agencies (DORA) adopts rules to implement the bill.

Representative Lee and Representative Pabon responded to questions from the committee regarding efforts to protect investors, information given to investors regarding the risk of the investments, why residents of other states are excluded from the ability to invest, details regarding the online intermediaries, reasons for the 5,000 dollar investment limit, and other questions related to the bill.

01:49 PM -- Eli Regalado, CEO of Mad Hatter Agency, testified in support of the bill. Mr. Regalado discussed the impact the bill would have on his business and other similar businesses.

01:53 PM -- John Leonard, Colorado Technology Association (CTA), testified in support of the bill. Mr. Leonard spoke about his clients' experiences, how the bill would impact these businesses, and other topics related to the bill. Mr. Leonard responded to questions from the committee.

01:59 PM -- Chris Votoupal, representing the Colorado Cleantech Industries Association (CCIA), testified in support of the bill. Mr. Votoupal spoke about the impact the bill would have on access to capital for start-up companies.

02:01 PM -- Brad Amman, CFO of CereScan and representing the Colorado BioScience Association, testified in support of the bill.

02:04 PM -- Jerry Rome, Commissioner of the Colorado Division of Securities, testified in support of the bill. Mr. Rome spoke about issues related to the bill and responded to questions from the committee regarding a state's authority to enact this type of legislation and other topics related to the bill and its implementation.

02:21 PM -- Daniel Taylor, Colorado Capital Congress, testified in support of the bill. Mr. Taylor spoke about several specific aspects of the bill that would be most beneficial.

02:24 PM -- Karl Dakin, representing himself, testified in support of the bill. Mr. Dakin testified that, on behalf of Tony Gagliardi, the National Federation of Independent Business (NFIB) is in support of the bill. Mr. Dakin spoke about the primary benefits the bill provides.

02:27 PM -- Herrick Lidstone, Colorado Bar Association (CBA), testified in support of the bill. Mr. Lidstone spoke about his experience in this area and responded to several of the committee's earlier questions. Mr. Lidstone responded to questions from the committee.

02:36 PM -- Kevin Ross, National Association of Insurance and Financial Advisors (NAIFA), spoke about the bill from a neutral position. Mr. Ross spoke about the association's concern regarding the intermediaries.

02:42 PM

Representative Lee and Representative Pabon made closing remarks regarding the bill and responded to questions from the committee.
BILL:HB15-1246
TIME: 02:44:41 PM
MOVED:Pabon
MOTION:Refer House Bill 15-1246 to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:Williams
VOTE
Arndt
Yes
Garnett
Yes
Keyser
Yes
Navarro
Yes
Nordberg
Yes
Pabon
Yes
Rosenthal
Yes
Roupe
Yes
Tate
Yes
Thurlow
Yes
Winter
Yes
Kraft-Tharp
Yes
Williams
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




02:45 PM

The committee adjourned.