AB 2751: Securities: qualification: exemptions.

Existing law, the Corporate Securities Law of 1968, requires the offer and sale of securities in the state to be qualified with the Commissioner of Business Oversight, unless exempt. That law exempts specific securities or transactions from qualification, including, among others, any security other than evidences of indebtedness of an issuer organized exclusively for specified non profit nonprofit purposes or as a chamber of commerce or trade or professional association.

This bill would also exempt from qualification any security that is evidence of indebtedness of an issuer organized exclusively for specified non profit nonprofit purposes or as a chamber of commerce or trade or professional association.

This bill would exempt from qualification the offer or sale of any security in three additional transactions that meet specified requirements that include, among others: that the aggregate amount of securities sold to all investors in a 12-month period does not exceed $500,000; that the aggregate amount of securities of an issuer that is a specified agricultural enterprise that are used for specified purposes sold to all investors in a 12-month period does not exceed $2,000,000, and a specified amount of the proceeds are used for agricultural purposes, as provided; that the aggregate mount amount of securities of an issuer that is a cooperative corporation, nonprofit or mutual benefit corporation, or an entity controlled by tenants in multitenant housing that are sold to all investors in a 12-month period does not exceed $2,000,000; $2,000,000, and a specified amount of the proceeds are used to purchase solar photovoltaic panels, wind turbines, or other necessary equipment or labor. labor, as provided. The bill would change references throughout these provisions from husband and wife to spouses, generally.