Securities transactions: qualification: notification: small company.

Existing law, the Corporate Securities Law of 1968, requires securities offered or sold in this state to be qualified through application filed with the Commissioner of Business Oversight, unless exempt from the qualification requirements. Under existing law, a security issued either by the issuer of a security registered under a designated provision of the federal law or issued by an investment company registered under other specified federal law, and which is not eligible for qualification by coordination under existing law, may be qualified by notification by making a specified application and providing certain documents and additional information. Existing law imposes liability for specified damages on a person who offers or sells a security if the sale is not qualified, violates a condition of qualification under the act, or violates an order suspending trading issued by the commissioner. This bill, in addition, would authorize qualification by notification for any offer or sale of a security if, among other requirements, the offering meets the requirements for a federal exemption for limited offerings and sales of securities not exceeding $1,000,000, and the aggregate amount of securities sold to any investor by the issuer does not exceed certain amounts within a 12-month time period, except as specified. This bill would require a court to award attorney's fees and costs to a prevailing purchaser in an action brought against a person who makes a sale in violation of the qualification provisions prescribed in the bill, and would authorize the court to award treble or punitive damages.