Qualified securities offerings: exemption.

Existing law, the Corporate Securities Law of 1968, requires certain securities offered or sold in this state to be qualified through application filed with the Commissioner of Corporations, or to be exempt from the qualification requirements. Existing law exempts offers and sales of securities in specified transactions including, without limitation, offers made to no more than 35 persons, excluding accredited investors. Existing law, Regulation D promulgated under the federal Securities Act of 1933, as amended, defines an " accredited investor" and specifies minimum net worth and income requirements. This bill would exempt from qualification offerings or sales of securities using a general solicitation or general advertising, provided the transaction meets specified requirements, including a requirement that the sales are made to accredited investors. Under existing law, the violation of the Corporate Securities Act of 1968 is a felony. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.