Crowdfunding to Combat the Coronavirus Act

Bill: 116-hr-6253
Sponsor: full_name: Rep. McHenry, Patrick T. [R-NC-10]
Introduced: 2020-03-12
Policy area: Finance and Financial Sector
Subjects: Cardiovascular and respiratory health

Congressional oversight

Educational technology and distance education

Emergency medical services and trauma care

Financial services and investments

Government studies and investigations

Health promotion and preventive care

Health technology, devices, supplies

Immunology and vaccination

Infectious and parasitic diseases

Internet and video services

Internet, web applications, social media

Research and development

Securities
Latest action: action_date: 2020-03-12
text: 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.

Summaries:
action_date: 2020-03-12
action_desc: Introduced in House
text: <p><b>Crowdfunding to Combat the Coronavirus Act</b></p> <p>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. </p> <p>The bill provides appropriations for the purpose of awarding&nbsp;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. </p> <p>Additionally, an issuer of securities that&nbsp;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&nbsp;regardless of the size of the issuer's offers&nbsp;or sales. Furthermore, these issuers are not subject to joint and several liability for certain claims. </p> <p>The provisions set forth in this bill expire the earlier of (1) the date the prize is awarded, or (2) three years after enactment. </p> <p>The Government Accountability Office must report on the bill's effects.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6253 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.

1. Short title This Act may be cited as the Crowdfunding to Combat the Coronavirus Act . 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. . 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. 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. 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.