HB 1390 Summary

• Codifies the Office of Small Business and Entrepreneurship established by Executive Order 13-17, with a director appointed by the lieutenant governor who reports directly to that office.

• Establishes a crowdfunding exemption allowing securities offerings up to $1,000,000 in a 12-month period if conducted through registered broker-dealers or funding portals that comply with specified requirements.

• Requires crowdfunding intermediaries to register with the securities commissioner, conduct background checks on issuers, provide investor education materials, and implement fraud prevention measures.

• Establishes investor protections including investment limits ($2,000-$100,000 per investor depending on income), a one-year transfer restriction on crowdfunded securities, and mandatory issuer disclosures regarding business operations and financial condition.

• Effective upon passage with an emergency declaration included.