Crowdfunding to Combat the Coronavirus Act

I 116TH CONGRESS 2D SESSION H. R. 6253 To expand certain securities exemptions to respond to COVID–19, to establish an X-prize for creating an effective COVID–19 vaccine, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 12, 2020 Mr. MCHENRY (for himself, Mrs. WAGNER, Mr. BARR, Mr. STIVERS, and Mr. HUIZENGA) introduced the following bill; which was referred to the Com- mittee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speak- er, in each case for consideration of such provisions as fall within the ju- risdiction of the committee concerned A BILL To expand certain securities exemptions to respond to COVID–19, to establish an X-prize for creating an effec- tive COVID–19 vaccine, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Crowdfunding to Com- 4 bat the Coronavirus Act’’. 5 VerDate Sep 11 2014 00:38 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6253.IH H6253 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6253 IH SEC. 2. EXPANSION OF CERTAIN SECURITIES EXEMPTIONS 1 TO RESPOND TO COVID–19. 2 (a) DEFINITIONS.—Section 2(a) of the Securities Act 3 of 1933 (15 U.S.C. 77b(a)) is amended by adding at the 4 end the following: 5 ‘‘(20) ISSUER COMBATING COVID–19.—The 6 term ‘issuer combating COVID–19’ means an issuer 7 that undertakes— 8 ‘‘(A) efforts to find a vaccine for COVID– 9 19; 10 ‘‘(B) research or production of medical 11 equipment related to COVID–19, including— 12 ‘‘(i) testing equipment; and 13 ‘‘(ii) touchless automation and hands- 14 free proximity sensing technology; 15 ‘‘(C) research or production of technology 16 or equipment related to social distancing or 17 other non-medical strategies to reduce the dan- 18 ger of COVID–19 to the general population, in- 19 cluding— 20 ‘‘(i) online education technology; and 21 ‘‘(ii) remote video conferencing tech- 22 nology; and 23 ‘‘(D) such other activities as the Commis- 24 sion may determine appropriate.’’. 25 VerDate Sep 11 2014 00:38 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6253.IH H6253 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6253 IH (b) ISSUE EXEMPTIVE AUTHORITY WITH RESPECT 1 TO COVID–19.—Section 3(b) of the Securities Act of 2 1933 (15 U.S.C. 77c(b)) is amended— 3 (1) in paragraph (1), by inserting after ‘‘no 4 issue of securities’’ the following: ‘‘(other than an 5 issue of securities by an issuer combating COVID– 6 19)’’; and 7 (2) in paragraph (2)(A), by striking ‘‘The ag- 8 gregate’’ and inserting ‘‘Except for securities of an 9 issuer combating COVID–19, the aggregate’’. 10 (c) CROWDFUNDING EXEMPTION WITH RESPECT TO 11 COVID–19.—Section 4(a)(6)(A) of the Securities Act of 12 1933 (15 U.S.C. 77d(a)(6)(A)) is amended by inserting 13 before ‘‘the aggregate amount’’ the following: ‘‘except for 14 transactions involving the offer or sale of securities by an 15 issuer combating COVID–19,’’. 16 (d) EXEMPTION FROM JOINT AND SEVERAL LIABIL- 17 ITY.—Section 24 of the Securities Act of 1933 (15 U.S.C. 18 77x) is amended by adding at the end the following: ‘‘Not- 19 withstanding any other provision of law, an issuer com- 20 bating COVID–19 shall not be subject to joint and several 21 liability for any claim against such issuer, other than a 22 claim of fraud under the securities laws.’’. 23 VerDate Sep 11 2014 00:38 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6253.IH H6253 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6253 IH SEC. 3. COVID–19 X-PRIZE. 1 If the Director of the Centers for Disease Control and 2 Prevention or the Director of the National Institutes of 3 Health determines that a person has created a vaccine for 4 COVID–19 that cuts the incidence and mortality rate of 5 COVID–19 by more than 50 percent and makes such vac- 6 cine widely available to the public at affordable rates, such 7 Director shall report such determination to the President 8 and the Secretary of the Treasury. If, after reviewing such 9 report, the President agrees, the Secretary of the Treasury 10 shall, without further appropriation and out of any 11 amounts in the general fund not otherwise appropriated, 12 pay such person $1,000,000,000. 13 SEC. 4. GAO STUDY. 14 Not later than 1 year after the date of the enactment 15 of this Act, the Comptroller General of the United States 16 shall submit to Congress a study on the impact of this 17 Act and the amendments made by this Act. 18 SEC. 5. SUNSET. 19 This Act and the amendments made by this Act shall 20 have no force or effect after the earlier of— 21 (1) the date the Secretary of the Treasury 22 awards the prize described under section 3; and 23 (2) the end of the 3-year period beginning on 24 the date of enactment of this Act. 25 Æ VerDate Sep 11 2014 00:38 Mar 27, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H6253.IH H6253 pamtmann on DSKBC07HB2PROD with BILLS