Bill Text: CA AB2610 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Securities: qualification: period of effectiveness.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2610 Detail]

Download: California-2015-AB2610-Introduced.html

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BILL NUMBER: AB 2610	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Holden
   (Coauthor: Assembly Member Brown)

                        FEBRUARY 19, 2016

   An act to amend Section 25114 of the Corporations Code relating to
securities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2610, as introduced, Holden. Securities: qualification.
   Existing law, the Corporate Securities Law of 1968, requires
securities offered or sold in this state in an issuer transaction to
be qualified through an application filed with the Commissioner of
Business Oversight, unless exempt from the qualification
requirements. Existing law generally provides that every
qualification under these provisions is effective for 12 months from
its effective date. Existing law makes it unlawful for a person in
connection with the offer, sale, or purchase of a security to engage
in fraudulent or misleading acts or omissions.
   This bill would increase that effective period of qualification
from 12 months to 36 months unless an issuer makes a change to its
board members, directors, officers, partners, members, or trustees,
in which case the qualification would become ineffective, as
provided.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25114 of the Corporations Code is amended to
read:
   25114.   Every   (a)    
Subject to the limitations in subdivisions (b) and (c), every 
qualification under this chapter is effective for  12
  36  months from its effective date, unless the
commissioner by order or rule specifies a different period, except
during the time an order under Section 25140 or subdivision (a) of
Section 25143 is in effect. 
   (b) (1) Any qualification under this chapter immediately becomes
ineffective upon any change in board members, directors, officers,
partners, members, or trustees of the issuer.  
   (2) If any of the changes specified in paragraph (1) occur, an
issuer shall reapply for qualification pursuant to this chapter. If a
qualification becomes ineffective pursuant to paragraph (1) but the
issuer subsequently successfully obtains qualification for the
securities, then that qualification shall only remain effective for
the same period of time as the original qualification issued pursuant
to subdivision (a).  
   (c) The provisions of this section shall not change the
qualification requirements of Sections 25111, 25112, or 25113.