A crucial deadline for bills to advance in the General Assembly known as the “crossover” is at hand, but “crowdfunding” isn’t dead yet, says WRAL’s Mark Binker, one of our politics reporter who basically lives at the General Assembly these days.
But that’s no guarantee a bill will pass, either, even though crowdfunding is seen as a significant means of driving investment to startups – and therefore creating job growth as well as new companies.
“The crossover rule applies to any bill that doesn’t raise or spend money,” Binker tells the Skinny.
Bills have to “cross over” from the House and Senate or they are doomed for this session.
The Skinny reached out to Binker to see if crowdfunding and economic incentives for jobs would be hit by the deadline.
“Both the economic development bills and crowdfunding would do that – so they are not part of the hustle that is going on this week,” Binker explains.
They are “immune,” as he describes it.
So the Skinny asks: Bill backers should just be patient?
“Well, they should just know that just because it’s not done yet doesn’t mean it won’t get done,” he says.
The McCrory administration is growing increasingly impatient about both crowdfunding and economic incentives.
“We’ve got to get this done!”
So declared Gov. Pat McCrory at a recent economic development forum about crowdfunding, as rpeorted by The Triangle Business Journal.
Is anyone listening?
Senate Bill S481 is known as the NC PACES Act, and it’s passed an initial committee hurdle.
But so far the PACE is slow, to say the least.
Hard to understand, given that the bill received bipartisan support before. It failed then because of Republican chest-thumping over other issues. What’s the problem now?
Recap: Bill highlights
Here are highlights of the bill as summed up by backers at the NC JOBS Act (Now PACES) blog:
- The exemption allows accredited or non-accredited North Carolina resident investors to invest in equity or debt offerings from a North Carolina company provided the disclosure, reporting, registration, and limits described in the exemption are followed.
- A North Carolina company is allowed to promote the offering to North Carolina residents via the web or any other method provided the disclosure, reporting, registration, and limits described in the exemption are followed.
- A North Carolina company may raise up to $1M with non-reviewed financials, or up the $2M with reviewed or audited financials.
- Accredited North Carolina investors may invest any amount up to the offering limit, and non-accredited North Carolina investors may invest up to $5,000 annually per issuing company.
Crowdfunding backers have been down the legislative road to destination frustration before. Is it happening again?
Maybe with “crossover” passing some action will happen.
But don’t bet the house on it.
As for incentives … Republicans are divided on the issue, and what’s that old saying about a divided house not being able to stand, let alone pass a controversial bill?