Capitol - Your Illinois News Radar » It’s just a bill…
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
It’s just a bill…

Thursday, Feb 26, 2015

* But I like it

State Representative Tom Demmer (R-Dixon) has filed legislation that would give entrepreneurs and startup founders a kick-start into the market. House Bill 3091 allows the use of intrastate crowdfunding, a new investing concept that is capable of generating greater access to capital, allowing for entrepreneurs with ideas to make them into reality.

“Crowdfunding will be the way of the future and is the next step in evolution for startups and small businesses,” said Rep. Demmer. “There are a lot of entrepreneurs out there who have great ideas to start a business, but have no capital. This bill will give those people the opportunity to bring new and innovative business ideas to Illinois.”

The legislation creates an exemption from certain filing and registration requirements under the Act for intrastate securities offerings that meet certain conditions.

“We have to be competitive with surrounding states,” said Rep. Demmer. “Wisconsin, Indiana, and Michigan have already enacted this legislation, while Missouri and Kentucky currently have bills drafted. We have the opportunity to join these states to spur innovation, economic activity, and small-business job creation.”

The legislation is here.

…Adding… Some folks are a bit unclear on this concept. Currently, startups can only legally raise donations through online services like KickStarter. This bill allows contributors to become investors.

- Posted by Rich Miller        

  1. - Biliary Sludge Report - Thursday, Feb 26, 15 @ 2:00 pm:

    More of this please.

  2. - Wordslinger - Thursday, Feb 26, 15 @ 2:04 pm:

    People in Illinois have been raising money of investing through sites like kick starter for some time now.

    Is this some technical legislation to catch up, after the fact?

  3. - walker - Thursday, Feb 26, 15 @ 2:06 pm:

    Already being done. Is SEC cracking down or something?

  4. - Anonin' - Thursday, Feb 26, 15 @ 2:07 pm:

    Why so slow Demmer?
    Does BVR like or does he prefer to limit biz bucks backing to his big bank/hedge fund pals
    Does Citadel have a position?

  5. - Rich Miller - Thursday, Feb 26, 15 @ 2:08 pm:

    ===Already being done===

    No, it’s not. You can only raise donations now. This bill would allow contributors to become investors.

  6. - 47th Ward - Thursday, Feb 26, 15 @ 2:10 pm:

    Rich, let me know if you ever want to sell some Capitol Fax stock.

  7. - Anon - Thursday, Feb 26, 15 @ 2:15 pm:

    Michigan has done this

  8. - A guy - Thursday, Feb 26, 15 @ 2:33 pm:

    Just proves you don’t have to invent the wheel or fire, just be open to using them. Good bill.

  9. - scott aster - Thursday, Feb 26, 15 @ 2:34 pm:

    There will probably be other bills put up by Reps that mirror our neighbors. The dems only want to regulate and stiffle ideas. Keep going Rich. TX

  10. - Jorge - Thursday, Feb 26, 15 @ 2:39 pm:

    Not a bad idea. It’s a little late but when is governin(g) timely?

  11. - Anonymous - Thursday, Feb 26, 15 @ 2:51 pm:

    This isn’t being done and is a great bill. Like others have said, you can only raise donations on kickstarter, which is great. I had a friend raise $330k on his kickstarter just because people liked his idea and wanted to see the world with his product in it. Who knows how much he could have raised if he was selling points on his company to investors. He could have raised a million which is likely a lot closer to the working capital he needed to get off the ground and start production on his invention KeySmart. Crowd funding is great but certainly limited when you have to rely on people giving you donations with no expectation of return. This will open up doors for lots of people with great ideas.

  12. - Precinct Captain - Thursday, Feb 26, 15 @ 2:53 pm:

    ==- scott aster - Thursday, Feb 26, 15 @ 2:34 pm:==

    The word you are looking for is stifle. The bill was filed on Tuesday and assigned to the Rules committee yesterday. There is no stifling of the bill going on. Grow up.

  13. - MrJM - Thursday, Feb 26, 15 @ 2:57 pm:

    The details are (of course) different, but this podcast discusses crowd-investing and the limitations on who can take part:

    – MrJM

  14. - walker - Thursday, Feb 26, 15 @ 3:10 pm:

    Thanks Rich. Good bill.

  15. - crazybleedingheart - Thursday, Feb 26, 15 @ 3:16 pm:

    Irrelevant bill at this point, right?

    Since the SEC rules on crowd investing aren’t out yet?

  16. - TD - Thursday, Feb 26, 15 @ 3:24 pm:

    Thanks Rich. I actually started looking in to this after a post you did about an Illinois Policy Institute article a few months back.

    Rep. Carol Sente is working on a similar bill too and we’re going to work together on something going forward.

  17. - Midwest Mom - Thursday, Feb 26, 15 @ 3:29 pm:

    == scott aster - Thursday, Feb 26, 15 @ 2:34 pm:

    ==The dems only want to regulate and stiffle (sic)ideas. ==

    Oh, like the repubs are only wanting to regulate and stifle our bodies? Step back, buddy. Walk away carefully.

  18. - Illini - Thursday, Feb 26, 15 @ 3:35 pm:

    There probably is some merit to this idea and definitely worth a closer look.

    However, if this has been proposed and passed in some other states, I am wondering if this is the workings of ALEC or some other agenda/issue driven organization targeting legislation at the state level.

    That is not to say that this proposal should not be considered, but many outside groups - on both sides - have their own agendas.

    If this could help our state I am all for it, but I have to wonder if there is another entity pulling the strings?

  19. - Apocalypse Now - Thursday, Feb 26, 15 @ 3:50 pm:

    Like the idea. The SEC and Federal regulators will hate the idea. Trial lawyers will have to figure out, if they like or hate the idea.

  20. - Anon - Thursday, Feb 26, 15 @ 3:56 pm:

    This is a great idea. Need to look in to it more, but it’s almost like getting back to what investing was really supposed to be all about. Buying in on producing ideas and products and helping to create companies. Investing these days seems like it’s just giving money to your broker on Wall Street who just shuffles things around while he makes money.

  21. - Anthony Zeoli - Thursday, Feb 26, 15 @ 4:12 pm:

    With all due respect to Rep. Demmer, while I can appreciate his enthusiasm for the crowdfunding concept, the language in the crowdfunding bill he filed (HB 3091) was NOT his, it was MINE and was used without notice to, or permission from, me at all. I have been drafting this bill for the last year and this particular version has been posted on my website ( and my blog ( for months. I have since been working with the SBAC and the Illinois Secretary of State to draft a revised version of this bill which will be filed by a different representative shortly.

  22. - crazybleedingheart - Thursday, Feb 26, 15 @ 4:13 pm:

    Rep. Demmer -
    a) what kind of equity crowdsourcing is IL currently restricting, and
    b) how would your bill make it happen?

  23. - crazybleedingheart - Thursday, Feb 26, 15 @ 4:16 pm:

    Huh. Then I guess I’d ask the same question of you, Mr. Zeoli.

  24. - Anthony Zeoli - Thursday, Feb 26, 15 @ 4:22 pm:

    @crazybleedingheart The proposed bill will create an exemption to allow Illinois companies to seek investment from both accredited (e.g. high net worth individuals) AND non-accredited residents of Illinois. Currently no such process exists (at least no easy one) in Illinois which would allow for investment by non-accredited residents.

    Please let me know if that does not answer your question.

  25. - crazybleedingheart - Thursday, Feb 26, 15 @ 4:32 pm:

    Once the bill is passed, IL companies will still not be able to raise money from non-accredited investors under SEC rules, correct?

  26. - Anthony Zeoli - Thursday, Feb 26, 15 @ 4:34 pm:

    @crazybleedingheart No that is not correct. The bill takes advantage of what is called an “intrastate exemption.” Basically because an IL company is only soliciting investments form IL residents (i.e. all of the transactions occur within the state) the state is permitted to regulate the transactions. Accordingly, if passed, Illinois companies would be able to solicit investment from non-accredited investors who reside in Illinois.

  27. - crazybleedingheart - Thursday, Feb 26, 15 @ 4:46 pm:

    Ah, of course. IL investors in IL companies.

  28. - Anthony Zeoli - Thursday, Feb 26, 15 @ 5:17 pm:

    In reference to my earlier comment regarding Rep. Demmer, I would like to note to everyone that Rep. Demmer took the time to personally call me regarding the matter in order to apologize for any misunderstanding there may have been. He clarified that it was solely out of his support for the concept that he filed the bill and that he believed he was furthering, not hindering, my cause. I truly appreciate his taking the time to talk to me on the matter and I am glad to have his support going forward.

  29. - Downstate Illinois - Thursday, Feb 26, 15 @ 5:28 pm:

    Sounds good. We need a legislature focused on expanding our economy rather than encouraging envy.

  30. - Illini - Thursday, Feb 26, 15 @ 5:53 pm:

    So who exactly are non-accredited investors? And I do admit that I did not read the proposed leglislation.

  31. - Anthony Zeoli - Thursday, Feb 26, 15 @ 6:00 pm:

    A non-accredited investor is any person/entity who does not fall under one of the classes of “accredited investors” under Rule 230.501

    For individuals, basically person making less than $200k per year and/or have less than $1M in net worth (excluding primary residence)

  32. - Illini - Thursday, Feb 26, 15 @ 6:12 pm:

    Thanks Anthony - and I, unfortunately, am a non-accredited investor.

  33. - Illinois Manufacturer - Thursday, Feb 26, 15 @ 10:18 pm:

    This is one of the few times I am in agreement with the IPI. Hope that association doesn’t kill it

  34. - Jerry 101 - Thursday, Feb 26, 15 @ 10:33 pm:

    It’s like the Great Depression never happened.

  35. - friday fun facts - Friday, Feb 27, 15 @ 5:17 am:

    Money? Just Ask Gov. 1% Billionaire Bruce and his buddies. Guy makes $29,000 and hour and just caught a $750,000 tax break. I’m sure he would reach deep into his Carhartt jacket to pull out a shiny new nickel for you and your start up. Shaking up Springfield and the piggy banks of poor people, smashing them open is his life’s work!

Sorry, comments for this post are now closed.

* ILGOP pledges to "continue to oppose taxpayer funding of abortion"
* The Madigan PR campaign continues
* Climate change denier warns of mob violence if renewable energy is expanded
* Pritzker, Frerichs announce loan program for furloughed federal workers
* Today's quotable
* A twofer for Preckwinkle
* SUBSCRIBERS ONLY - Update to this morning's edition
* Question of the day
* First Class all the way
* Manteno Veterans' Home tests show "low levels of Legionellosis"
* Pritzker signs EO committing Illinois to Paris Climate Agreement
* The Dome is leaking
* It's Time To Put Our Progressive Values Into Action
* More on Pritzker's HB40 EO
* Yeah, that'll work well
* Report: Ald. Solis recorded conversations with Ald. Burke
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Visit our advertisers...








Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0

Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller