California 2013-2014 Regular Session Status: Enacted

SB 538 — The Corporate Securities Law of 1968.

Last action — Chaptered by Secretary of State. Chapter 335, Statutes of 2013.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 22, 2013. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) The Corporate Securities Law of 1968 provides for the regulation of the issuance of corporate securities. The law requires an offer or sale of a security that is exempt from registration under the federal Securities Act of 1933 to meet specified requirements, including filing a notice with the Commissioner of Corporations. Commencing on July 1, 2013, various duties of the Commission of Corporations under this law are transferred to the Commissioner of Business Oversight. This bill would modify references to that federal law. (2) The Corporate Securities Law of 1968 authorizes the commissioner, after appropriate notice and opportunity for hearing, to levy administrative penalties, as specified. This bill would authorize, after exhaustion of administrative remedies, the commissioner to apply to the appropriate superior court for a civil judgment of the imposed penalties. (3) Existing law makes it unlawful for a person to offer or sell a security by means of making an untrue statement of a material fact or omitting to state a material fact necessary to make the statements not misleading, as specified. This bill would recast this provision and expand the basis for unlawful activity, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program. (4) The Corporate Securities Law of 1968 authorizes the commission to order a person to refrain from violating certain of its provisions, and provides a person so ordered one year to seek an administrative hearing. This bill would reduce the period in which an individual may seek a hearing to 30 days, and authorize the commissioner to order a person to refrain from violating a rule or order adopted under the Corporate Securities Law of 1968, and to seek ancillary relief, including, but not limited to, a claim for restitution before an administrative law judge. This bill would also allow the commission to file an order for relief with the superior court to enforce a final order from an administrative proceeding that would have the same effect as a judgment of the superior court. (5) Existing law prohibits a person from, on behalf of a licensed broker-dealer or on behalf of an issuer, to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security unless the broker-dealer and agent have complied with rules of the commissioner for the qualification and employment of those agents. Existing law prohibits a person from, on behalf of a certified investment adviser, offering or negotiating for the sale of investment advisory services of the investment adviser unless the investment adviser and person have complied with rules of the commissioner for the qualification and employment of those persons. Existing law requires the commissioner to impose a fee of $25 for the filing of a notice or report required by these rules. This bill would authorize the commissioner to impose a fee of $35 to keep a notice or report required under these provisions in effect for the following year. (6) This bill would also make legislative findings and declarations. (7) 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.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 335, Statutes of 2013.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. In Senate. Ordered to engrossing and enrolling.

  5. Read third time. Passed. (Ayes 68. Noes 1. Page 2877.) Ordered to the Senate.

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 13. Noes 0.) (August 30).

  8. Set, first hearing. Referred to APPR. suspense file.

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (June 10). Re-referred to Com. on APPR.

  10. Referred to Com. on B. & F.

  11. In Assembly. Read first time. Held at Desk.

  12. Read third time. Passed. (Ayes 27. Noes 6. Page 674.) Ordered to the Assembly.

  13. Read second time. Ordered to third reading.

  14. From committee: Do pass. (Ayes 5. Noes 1. Page 534.) (April 15).

  15. Set for hearing April 15.

  16. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0. Page 404.) (April 3). Re-referred to Com. on APPR.

  17. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

  18. Set for hearing April 3.

  19. Referred to Com. on B. & F.I.

  20. Read first time.

  21. From printer. May be acted upon on or after March 25.

  22. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • Hill · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Hill

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 538 Hill Senate Third Reading By CHAU

Passed 68 Yea · 1 Nay · 9 Other
Party YeaNayPresentNot Voting
Unaffiliated 63107
Democratic 4000
Republican 1002
Total 68109
% of votes cast 87%1%0%12%
How each member voted (78)
Member Party Vote
Achadjian — Yea
Ammiano — Yea
Bloom — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Holden — Yea
Linder — Yea
Maienschein — Yea
Mansoor — Not Voting
Nestande — Yea
Wagner — Yea
Wieckowski — Yea
Wilk — Not Voting
Hagman — Yea
Allen — Yea
Daly — Yea
Conway — Not Voting
Lowenthal — Yea
Garcia — Yea
Gray — Yea
Atkins — Yea
Fong — Yea
Mitchell — Yea
Campos — Yea
Chau — Yea
Bonilla — Yea
Gatto — Yea
Gomez — Yea
Gordon — Yea
Gorell — Yea
Hall — Yea
Harkey — Yea
Bocanegra — Yea
Jones-Sawyer — Yea
John A. Pérez — Yea
Levine — Yea
Salas — Yea
Logue — Yea
Chesbro — Yea
Medina — Yea
Melendez — Not Voting
Morrell — Yea
Alejo — Yea
Bigelow — Not Voting
Chávez — Yea
Cooley — Yea
Dickinson — Yea
Donnelly — Nay
Eggman — Yea
Mullin — Yea
Nazarian — Yea
Olsen — Yea
Pan — Yea
Perea — Yea
Quirk — Yea
Rendon — Yea
Skinner — Yea
Ting — Yea
Waldron — Yea
Weber — Yea
Williams — Yea
Fox — Yea
Frazier — Yea
Yamada — Yea
Beth Gaines — Not Voting
Jim Patterson — Not Voting
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Yea
Jones, Brian W. Republican Not Voting

Official roll call →

Do pass.

Passed 13 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 12004
Democratic 1000
Total 13004
% of votes cast 76%0%0%24%
How each member voted (17)
Member Party Vote
Bigelow — Not Voting
Bradford — Yea
Harkey — Not Voting
Linder — Yea
Gomez — Yea
Hall — Yea
Campos — Yea
Bocanegra — Yea
Holden — Yea
Donnelly — Not Voting
Eggman — Yea
Pan — Yea
Quirk — Yea
Wagner — Not Voting
Weber — Yea
Gatto — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

Passed 9 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 8101
Democratic 1000
Total 9101
% of votes cast 82%9%0%9%
How each member voted (11)
Member Party Vote
Achadjian — Yea
Blumenfield — Yea
Harkey — Not Voting
Chau — Yea
Linder — Yea
Dickinson — Yea
Morrell — Nay
Perea — Yea
Weber — Yea
Gatto — Yea
Bonta, Mia Democratic Yea

Official roll call →

3rd Reading

Passed 27 Yea · 6 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 25604
Democratic 2001
Total 27605
% of votes cast 71%16%0%13%
How each member voted (38)
Member Party Vote
Anderson — Nay
Block — Yea
Knight — Nay
Lieu — Yea
Monning — Yea
Roth — Yea
Steinberg — Yea
Wright — Yea
Corbett — Yea
Emmerson — Yea
Correa — Yea
Evans — Yea
Fuller — Yea
Cannella — Yea
Galgiani — Yea
Hernandez — Yea
Beall — Yea
Lara — Yea
Leno — Yea
Liu — Yea
Hill — Yea
Pavley — Yea
Price — Yea
Wyland — Nay
De León — Not Voting
Hueso — Not Voting
Huff — Nay
Nielsen — Nay
Walters — Not Voting
Wolk — Not Voting
DeSaulnier — Yea
Yee — Yea
Hancock — Yea
Beth Gaines — Nay
Bill Berryhill — Yea
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Not Voting

Official roll call →

Do pass.

Passed 5 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4101
Democratic 1000
Total 5101
% of votes cast 71%14%0%14%
How each member voted (7)
Member Party Vote
Lara — Yea
Walters — Not Voting
De León — Yea
Hill — Yea
Steinberg — Yea
Beth Gaines — Nay
Padilla, Stephen C. Democratic Yea

Official roll call →

Subjects

finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 538 do?
(1) The Corporate Securities Law of 1968 provides for the regulation of the issuance of corporate securities. The law requires an offer or sale of a security that is exempt from registration under the federal Securities Act of 1933 to meet specified requirements, including filing a notice with the Commissioner of Corporations. Commencing on July 1, 2013, various duties of the Commission of Corporations under this law are transferred to the Commissioner of Business Oversight. This bill would modify references to that federal law. (2) The Corporate Securities Law of 1968 authorizes the commissioner, after appropriate notice and opportunity for hearing, to levy administrative penalties, as specified. This bill would authorize, after exhaustion of administrative remedies, the commissioner to apply to the appropriate superior court for a civil judgment of the imposed penalties. (3) Existing law makes it unlawful for a person to offer or sell a security by means of making an untrue statement of a material fact or omitting to state a material fact necessary to make the statements not misleading, as specified. This bill would recast this provision and expand the basis for unlawful activity, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program. (4) The Corporate Securities Law of 1968 authorizes the commission to order a person to refrain from violating certain of its provisions, and provides a person so ordered one year to seek an administrative hearing. This bill would reduce the period in which an individual may seek a hearing to 30 days, and authorize the commissioner to order a person to refrain from violating a rule or order adopted under the Corporate Securities Law of 1968, and to seek ancillary relief, including, but not limited to, a claim for restitution before an administrative law judge. This bill would also allow the commission to file an order for relief with the superior court to enforce a final order from an administrative proceeding that would have the same effect as a judgment of the superior court. (5) Existing law prohibits a person from, on behalf of a licensed broker-dealer or on behalf of an issuer, to effect any transaction in, or to induce or attempt to induce the purchase or sale of, any security unless the broker-dealer and agent have complied with rules of the commissioner for the qualification and employment of those agents. Existing law prohibits a person from, on behalf of a certified investment adviser, offering or negotiating for the sale of investment advisory services of the investment adviser unless the investment adviser and person have complied with rules of the commissioner for the qualification and employment of those persons. Existing law requires the commissioner to impose a fee of $25 for the filing of a notice or report required by these rules. This bill would authorize the commissioner to impose a fee of $35 to keep a notice or report required under these provisions in effect for the following year. (6) This bill would also make legislative findings and declarations. (7) 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.
Who sponsors SB 538?
SB 538 is sponsored by Hill.
What is the current status of SB 538?
This bill has been enacted into law. Introduced February 22, 2013. Enacted.
Where can I track SB 538?
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