Section 1 Short title
This Act may be cited as the “Crowdfunding to Combat the Coronavirus Act”.
Crowdfunding to Combat the Coronavirus Act
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.
Sec. 2 Expansion of certain securities exemptions to respond to COVID–19
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.”
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—
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
in paragraph (2)(A), by striking “The aggregate” and inserting “Except for securities of an issuer combating COVID–19, the aggregate”.
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,”.
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.