Corporate securities: exemption from requirements.

Existing law, the Corporate Securities Law of 1968, provides for the regulation of the issuance of corporate securities, requires the qualification of an offer or sale of securities, and provides for exemptions from qualification with the Commissioner of Business Oversight. Existing law exempts certain securities from provisions requiring qualification of the security or an exemption of the security or transaction. This exemption includes shares or memberships issued by a corporation organized pursuant to the Cooperative Corporation Law, if the aggregate investment of a shareholder or member in shares or memberships sold does not exceed $1,000. Existing law also specifies the circumstances in which this exemption does not apply, including, to shares or memberships if a promoter thereof expects or intends to make a profit from a business or activity associated with the corporation. This bill would expand the above exemption to also apply to any credits to a member's capital issued to a shareholder or member by any corporation organized pursuant to that law, if the aggregate investment in the corporation of that shareholder or member in shares, memberships, or credits to that member's capital sold pursuant to that provision does not exceed $1,000. The bill would specify that this limitation does not apply to any shares, memberships, or credits allocated to a member's capital as all, or part of, any patronage distributions.