Title: Crowdfunding to Combat the Coronavirus Act
Policy area: Finance and Financial Sector

Summary:
Crowdfunding to Combat the Coronavirus Act
This bill (1) establishes an award for the successful development of a vaccine for the coronavirus (i.e., the virus that causes COVID-19), and (2) extends specified Securities and Exchange Commission (SEC) registration exemptions to issuers of securities responding to the COVID-19 outbreak.
The bill provides appropriations for the purpose of awarding a prize to the creator of a vaccine that (1) reduces the incidence and mortality rate of COVID-19 by more than 50%, and (2) is affordable and widely available to the public.
Additionally, an issuer of securities that is developing a coronavirus vaccine, researching or producing medical equipment related to COVID-19, or researching or producing technology related to preventing the spread of COVID-19 may qualify for an exemption from SEC registration requirements regardless of the size of the issuer's offers or sales. Furthermore, these issuers are not subject to joint and several liability for certain claims.
The provisions set forth in this bill expire the earlier of (1) the date the prize is awarded, or (2) three years after enactment.
The Government Accountability Office must report on the bill's effects.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6253 Introduced in House (IH)]

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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 
 Committee on Financial Services, and in addition to the Committee on 
Energy and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Crowdfunding to Combat the 
Coronavirus Act''.

SEC. 2. EXPANSION OF CERTAIN SECURITIES EXEMPTIONS TO RESPOND TO COVID-
              19.

    (a) Definitions.--Section 2(a) of the Securities Act of 1933 (15 
U.S.C. 77b(a)) is amended by adding at the end the following:
            ``(20) Issuer combating covid-19.--The term `issuer 
        combating COVID-19' means an issuer that undertakes--
                    ``(A) efforts to find a vaccine for COVID-19;
                    ``(B) research or production of medical equipment 
                related to COVID-19, including--
                            ``(i) testing equipment; and
                            ``(ii) touchless automation and hands-free 
                        proximity sensing technology;
                    ``(C) research or production of technology or 
                equipment related to social distancing or other non-
                medical strategies to reduce the danger of COVID-19 to 
                the general population, including--
                            ``(i) online education technology; and
                            ``(ii) remote video conferencing 
                        technology; and
                    ``(D) such other activities as the Commission may 
                determine appropriate.''.
    (b) Issue Exemptive Authority With Respect to COVID-19.--Section 
3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) is amended--
            (1) in paragraph (1), by inserting after ``no issue of 
        securities'' the following: ``(other than an issue of 
        securities by an issuer combating COVID-19)''; and
            (2) in paragraph (2)(A), by striking ``The aggregate'' and 
        inserting ``Except for securities of an issuer combating COVID-
        19, the aggregate''.
    (c) Crowdfunding Exemption With Respect to COVID-19.--Section 
4(a)(6)(A) of the Securities Act of 1933 (15 U.S.C. 77d(a)(6)(A)) is 
amended by inserting before ``the aggregate amount'' the following: 
``except for transactions involving the offer or sale of securities by 
an issuer combating COVID-19,''.
    (d) Exemption From Joint and Several Liability.--Section 24 of the 
Securities Act of 1933 (15 U.S.C. 77x) is amended by adding at the end 
the following: ``Notwithstanding any other provision of law, an issuer 
combating COVID-19 shall not be subject to joint and several liability 
for any claim against such issuer, other than a claim of fraud under 
the securities laws.''.

SEC. 3. COVID-19 X-PRIZE.

    If the Director of the Centers for Disease Control and Prevention 
or the Director of the National Institutes of Health determines that a 
person has created a vaccine for COVID-19 that cuts the incidence and 
mortality rate of COVID-19 by more than 50 percent and makes such 
vaccine widely available to the public at affordable rates, such 
Director shall report such determination to the President and the 
Secretary of the Treasury. If, after reviewing such report, the 
President agrees, the Secretary of the Treasury shall, without further 
appropriation and out of any amounts in the general fund not otherwise 
appropriated, pay such person $1,000,000,000.

SEC. 4. GAO STUDY.

    Not later than 1 year after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to Congress a 
study on the impact of this Act and the amendments made by this Act.

SEC. 5. SUNSET.

    This Act and the amendments made by this Act shall have no force or 
effect after the earlier of--
            (1) the date the Secretary of the Treasury awards the prize 
        described under section 3; and
            (2) the end of the 3-year period beginning on the date of 
        enactment of this Act.
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