1. The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm Monday, July 28, 2014 Curtis Wright and Thomas Vass Discuss: What Went Wrong With The North Carolina Crowdfunding Bill and How It Can Be Strengthened For The Next Session of the General Assembly.

2. The Economic Context of The Discussion: North Carolina Job Losses In June Most In South: 1494

3. Crowdfunding Bill Rolled Into Very Complex Tax Bill Aimed At Industrial Recruitment Tax bill contains many of the old strategies that have not worked to create stable economic conditions in North Carolina. Crowdfunding chances for passage would have been better if it had not been rolled into the other bill. Crowdfunding would have been a better bill if it was part of a larger economic growth strategy.

4. Crowdfunding Bill Contained Many Defects: No Public Purpose Served By Limiting A Company’s Amount of Capital. One million dollars ($1,000,000), less the aggregate amount received 2 for all sales of securities by the issuer within the 12 months before the first offer or sale made in reliance upon this exemption without an audit. Two million dollars with an audit. What Purpose Does This Serve?

5. No Public Purpose Served On Limiting Amount of Capital From An Investor The issuer has not accepted more than two thousand dollars ($2,000) from any single purchaser unless the purchaser is an accredited investor.

6. No Public Purpose Served In Not Releasing Capital To Company Offering proceeds will be released to the issuer only when the aggregate capital raised from all investors is equal to or greater than the minimum target offering amount.

7. Too Much Internet Regulation of Crowdfunding Websites The Web site operator shall register with the Administrator The Web site must keep and maintain records of the offers and sales of securities effected through the Web site and must provide ready access to the records to the Administrator, upon request. The Administrator may access, inspect, and review any Website and its records.

8. Too Much Regulation of Banks The bank or depository institution shall notify The Administrator of the receipt of payments for securities and the identity and residence of the investors.

9. Regulatory Over-Kill on Details The disclosure document provided to the Administrator and to prospective investors should include additional information material to the offering, including, where appropriate, a discussion of significant factors that make the offering speculative or risky. This discussion must be concise and organized logically and should not present risks that could apply to any issuer or any offering.

10. Too Much Government Snooping The report must contain each of the following: Compensation received by each director and executive officer, including cash compensation earned since the previous report and on an annual basis and any bonuses, stock options, other rights to receive securities of the issuer or any affiliate of the issuer, or other compensation received. An analysis by management of the issuer of the business operations and financial condition of the issuer

11. No Public Solicitation Defeats The Entire Purpose of Crowdfunding The Administrator may by rule or order require the filing of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication addressed or intended for distribution to prospective investors, unless the security or transaction is exempted.

12. Whose Purposes or Financial Interests Does This Poorly Drafted Bill Serve? Does not solve any economic problems. Makes many existing problems worse by increasing the amount of government intervention in the capital markets.

13. The Best Idea? Hit Hillary’s Reset Button and Start Over. Use The South Carolina Crowdfunding Bill as a Guide.

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