LAS VEGAS - October 26, 2016
Today, Nevada Lieutenant Governor Mark Hutchison announced short term and long term plans and priorities for the Northern and Southern Nevada Entrepreneurship Task Forces. Each task force has held a first quarterly meeting, with the Northern Task Force having met on Thursday, August 25th, and the Southern Task Force having met on Wednesday, October 19th. Additional information on the meetings can be found online at Entrepreneurship Task Force meeting page.
Members have been tasked with compiling regional recommendations and a framework to address the strengths and challenges faced by the respective entrepreneurial communities by June of 2017. Long term, the task forces will assist in developing a statewide master plan for entrepreneurial development in Nevada, and produce a white paper by June 2018.
During the meetings, in an effort to make Nevada the most entrepreneurial friendly state in the nation and to enhance Nevada's entrepreneurial ecosystem, task force members identified two legislative priorities (BDR 53-419 and BDR 7-417) for the upcoming 2017 Nevada Legislative Session.
• BDR 53-419
To encourage the free flow of human capital throughout Nevada, BDR 53-419 prohibits the application of non-compete agreements in the startup industry. BDR 53-419 also strengthens existing laws that safeguard the non-disclosure of confidential information and trade secrets.
"Prohibiting non-compete agreements in certain employment contracts allows Nevada's entrepreneurs to pursue opportunities presented by innovative talents without the threat of legal proceedings. Nevada will thereby become more competitive with other entrepreneurial markets nationwide. While enhancing the free flow of human capital in the startup arena, this carefully crafted bill also provides added protection to businesses by protecting their confidential and proprietary information," said Lieutenant Governor Hutchison.
• BDR 7-417
To better align Nevada with federal regulations, BDR 7-417 eliminates the Nevada law requiring venture capitalists and private fund advisors to register as investment advisors. The bill also increases the number of purchasers from twenty-five to thirty-five under Nevada's limited offerings exemption.
"Exempting venture capitalists from registering as investment advisors improves the attractiveness of Nevada for the capital required to fuel startups and small businesses. Removing this governmental barrier brings Nevada in line with federal law while encouraging previously deterred venture capitalists to provide funding to Nevada entrepreneurs," said Lieutenant Governor Hutchison.
During the next meetings of the Southern and Northern Nevada Entrepreneurship Task Forces, members will address the status and language of legislative priorities, and identify and map out the current atmosphere and resources of each region's entrepreneurial communities.