Securities: qualification: period of effectiveness.

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, and generally provides that every qualification under these provisions is effective for 12 months from its effective date. This law makes it a crime for a person to willfully violate any of its provisions. This bill would increase that effective period for a qualification eligible for a Small Corporate Offering Registration, as specified, 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. The bill would reinstate effectiveness for the remainder of the 36-months qualification period if the offering is requalified, as specified. By modifying the period and conditions under which an offering is effective, this bill would modify the application of criminal provisions in existing law and thereby impose a state-mandated local program. 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.