HB2615 HSB FBM 2-19

                                                                             HOUSE COMMITTEE ON SMALL BUSINESS,

                                                ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

                                                                                                                COUNSEL: David Gilbert

FLOOR BOOK MEMO:     West Virginia Small Business Capital Act

SPONSORS:                         Delegate Lane

DATE INTRODUCED:       February 5, 2015

CODE REFERENCE:         §32-5-501, §32-5-502, §32-5-503, §32-5-504, §32-5-505 and §32-5-506 (new)

PURPOSE:                            The bill creates the West Virginia Small Business Capital Act. It exempts the offer and sale of certain securities from the Uniform Securities Act.

COMMITTEE ACTION:    The committee amended the bill to clarify that the issuer requirements contained in §32-5-503 are cumulative; to reduce the maximum single-purchaser limit from $25,000 to $10,000; to clarify when a Notice of Issuer must be filed; to require the Secretary of State to forward copies of Notices of Issuers to the State Auditor; and to apply to exempt issuers the Uniform Securities Act’s misleading filing provisions, its criminal penalty provisions, its civil liability provisions and its fraud provisions.

FISCAL NOTE:                 No

EFFECTIVE DATE:           Regular (90 days)

ADDITIONAL COMMITTEE REFERENCE:    Finance (waived)