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CALIFORNIA CORPORATE & SECURITIES LAW

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California Crowdfunding Bill In Suspense

Yesterday, Broc Romanek published several posts regarding crowdfunding.  Meanwhile here in California, crowd funding has stalled in the legislature.  AB 722 (Perea) passed unanimously out the Assembly Committee on Judiciary and on a 9-2 vote out of the Assembly Committee on Banking and Finance.  Assembly Members Travis Allen, a Republican, and Mark Stone, a Democrat, voted against the bill.

The bill’s next stop was the Assembly Appropriations Committee where it was placed in the suspense file.  If a bill has a fiscal impact in any fiscal year of $150,000 or more (any source fund), it is generally placed in the suspense file. “Fiscal impact” includes all fund sources.  The bill has not moved forward and is being held under submission.  Since this is the first year of the biennium, there may be hope that the bill will move forward next year.

 Is Walla Walla, WA The Birthplace of Crowd Funding?

On a recent excursion to Walla Walla, Washington, I happened upon a roadside historical marker.  Although the marker purported to tell the story of the completion of the rail line from Whitman Station to Walla Walla, I recognized it as an early and unheralded story of crowdfunding.  According to the marker, the railroad’s promoter, a Dr. Dorsey Syng Baker, ran out of funds to complete the track to Walla Walla.  After an unsuccessful bond issue, the citizens of Walla Walla raised the necessary funds and the track was completed in 1875.

IMG_7677Near Whitman Station, Washington

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