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Vermont committee clarifies H.648 language, plans straw poll and DFR review
Summary
The House Committee on Commerce & Economic Development reviewed an amendment to H.648 that reduces a purchaser threshold and clarifies that Subdivision 14's exemption does not apply to federal covered securities subject to Vermont notice filings; members agreed to seek Department of Financial Regulation input and take a nonbinding straw poll before a formal vote.
Montpelier — The Vermont House Committee on Commerce & Economic Development reviewed a technical amendment to H.648 on Jan. 29 that rewrites Section 48 to clarify securities-exemption language and reduce a purchaser threshold.
Legislative Counsel Maria Royal told the committee the proposal is "a clarification. It's not really a change to the substance of what you've already reviewed," and pointed to a numeric change in the First Amendment that replaces a 25-purchaser threshold with a 10-purchaser threshold.
Royal explained the statute addresses securities transactions that are exempt from registration and notice filings; Subdivision 14 addresses a type of single-issue securities exemption and the amendment clarifies how that exemption interacts with federal-covered securities. "The exemption specified in this subdivision 14 shall not apply to a Federal covered security that is otherwise subject to a notice filing under Vermont law," she said, summarizing the new draft language.
Royal said the Department of Financial Regulation (DFR) intends the state to retain authority to require notice filings for some federally covered securities even though federal law exempts them from registration. She told members the change was intended to improve clarity for readers of the statute while leaving the underlying policy the same.
Committee members agreed the rewritten language is clearer. The Chair noted the practical next step is coordinating with DFR staff; the committee discussed having DFR staff join by Zoom so agency staff can confirm the department's position before a formal, recorded vote.
The committee did not take a formal recorded vote on the amendment. Members agreed they could take a nonbinding straw poll now and, once the bill is placed on the House calendar (likely the following day), Representative Olson could offer the amendment on the floor and note the committee's deliberations. The Chair said, "If we want it in the calendar for tomorrow, we have to vote it today," but members clarified the committee can offer the amendment on the floor once the bill is calendared and report the committee's sense of the vote.
A person identifying themself as the deputy commissioner of securities said they would reach out to DFR staff to arrange participation. Committee members also discussed remote-participation and recording rules, emphasizing that a formal motion would trigger a recorded vote while a straw poll would not.
Next steps: the committee will seek DFR confirmation of the draft language, take a straw poll, and consider a formal vote after the bill is placed on the House calendar.
