California 2021-2022 Regular Session Status: Enacted 2 D cosponsors

AB 511 — Securities transactions: qualification requirements, exemptions, and liability.

Last action — Chaptered by Secretary of State - Chapter 617, Statutes of 2021.

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

This bill has been enacted into law. Introduced February 09, 2021. Enacted.

Prognosis

Likely to advance 74% · 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.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 D).

  • Cleared a recorded vote

    Passed 9 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

The Corporate Securities Law of 1968 requires securities offered or sold in this state in an issuer or nonissuer transaction to be qualified through an application, as specified, unless exempt from the qualification requirements. That law exempts, among other transactions, certain transactions not involving any public offering, as prescribed. That law also makes it unlawful, for a person in connection with the offer, sale, or purchase of a security, to engage in fraudulent or misleading acts or omissions. This bill would establish a new exemption from the qualification provisions for an offer or sale of any security for which the issuer is a California or foreign corporation that is not a "blind pool" company, as defined by the Commissioner of Financial Protection and Innovation, is not issuing fractional undivided interests in oil or gas rights or other similar mineral rights, is not an investment company subject to the federal Investment Company Act of 1940, and is not subject to certain reporting requirements of the Securities Exchange Act of 1934. The bill would require, among other criteria, that the offer or sale be conducted in accordance with certain requirements of federal law, except as provided, and that the issuer file a notice of transaction at least 15 days prior to the publication of an initial offer of these securities. Existing law provides that any person who violates a condition of qualification of the offer or sale of a security is liable to any person acquiring the security sold in violation, who may sue to recover the consideration paid for the security with interest thereon at the legal rate or for damages, as specified. This bill would provide for the recovery of reasonable attorney's fees, as specified. Existing law imposes liability on any person who engages in specified unlawful activity to the person who purchases a security from them or sells a security to them, and authorizes the purchaser or seller to sue either for rescission or for damages. The bill would require the court to award reasonable attorney's fees, as specified. The bill would also make technical changes.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 617, Statutes of 2021.

  2. Approved by the Governor.

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

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 0. Page 2844.).

  5. In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 5 pursuant to Assembly Rule 77.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2390.).

  7. Ordered to special consent calendar.

  8. Read second time. Ordered to third reading.

  9. From committee: Do pass. (Ayes 7. Noes 0.) (August 26).

  10. In committee: Referred to suspense file.

  11. From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (July 6). Re-referred to Com. on APPR.

  12. Read second time and amended. Re-referred to Com. on JUD.

  13. From committee: Amend, and do pass as amended and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 23).

  14. Referred to Coms. on B. & F.I. and JUD.

  15. In Senate. Read first time. To Com. on RLS. for assignment.

  16. Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1727.)

  17. Read second time. Ordered to third reading.

  18. From committee: Do pass. (Ayes 16. Noes 0.) (May 20).

  19. In committee: Set, first hearing. Referred to APPR. suspense file.

  20. Received by the Desk April 30 pursuant to Joint Rule 61(a)(2).

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 29). Re-referred to Com. on APPR.

  22. Coauthors revised.

  23. Re-referred to Com. on B. & F.

  24. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

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

  26. From printer. May be heard in committee March 12.

  27. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"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

AB 511 Muratsuchi Concurrence in Senate Amendments

Passed 72 Yea · 0 Nay · 8 Other
Party YeaNayPresentNot Voting
Unaffiliated 39005
Democratic 24003
Republican 9000
Total 72008
% of votes cast 90%0%0%10%
How each member voted (80)
Member Party Vote
Voepel — Yea
Friedman — Yea
Cooley — Yea
Mathis — Yea
Bigelow — Yea
Chiu — Yea
Mullin — Yea
Holden — Yea
Villapudua — Yea
Salas — Yea
Jones-Sawyer — Yea
Santiago — Yea
Maienschein — Yea
Rodriguez — Yea
Quirk — Yea
Wood — Yea
Kiley — Yea
Mayes — Yea
Nazarian — Yea
Ting — Yea
Low — Yea
Frazier — Yea
O'Donnell — Yea
Waldron — Yea
Daly — Yea
McCarty — Yea
Medina — Yea
Smith — Yea
Burke — Yea
Cunningham — Yea
Cooper — Yea
Chau — Yea
Gray — Not Voting
Levine — Not Voting
Bloom — Not Voting
Rendon — Not Voting
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Lorena Gonzalez — Not Voting
Luz Rivas — Yea
Mark Stone — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Not Voting
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Not Voting
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Not Voting
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Special Consent AB511

Passed 37 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 23000
Republican 3001
Democratic 11002
Total 37003
% of votes cast 93%0%0%8%
How each member voted (40)
Member Party Vote
Wilk — Yea
Bradford — Yea
Min — Yea
Hueso — Yea
Kamlager — Yea
Skinner — Yea
Leyva — Yea
Pan — Yea
Wieckowski — Yea
Roth — Yea
Melendez — Yea
Newman — Yea
Glazer — Yea
Bates — Yea
Atkins — Yea
Nielsen — Yea
Rubio — Yea
Portantino — Yea
Hertzberg — Yea
Eggman — Yea
Dodd — Yea
Gonzalez — Yea
Borgeas — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Not Voting
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Not Voting
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Do pass

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 2000
Unaffiliated 4000
Republican 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Kamlager — Yea
Portantino — Yea
Bates — Yea
Bradford — Yea
Laird, John Democratic Yea
McGuire, Mike Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Republican 1000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bradford — Yea
Bates — Yea
Portantino — Yea
Wieckowski — Yea
Kamlager — Yea
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

Passed 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4000
Democratic 6000
Republican 1000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Gonzalez — Yea
Borgeas — Yea
Wieckowski — Yea
Hertzberg — Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] with the recommendation: To Consent Calendar

Passed 9 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 3000
Unaffiliated 4000
Republican 2000
Total 9000
% of votes cast 100%0%0%0%
How each member voted (9)
Member Party Vote
Bradford — Yea
Portantino — Yea
Min — Yea
Hueso — Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Limón, Monique Democratic Yea
Dahle, Megan Republican Yea
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

AB 511 Muratsuchi Assembly Third Reading

Passed 78 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 41000
Democratic 28000
Republican 9001
Total 78001
% of votes cast 99%0%0%1%
How each member voted (79)
Member Party Vote
Villapudua — Yea
Salas — Yea
Quirk — Yea
Low — Yea
Levine — Yea
Daly — Yea
Gray — Yea
Burke — Yea
Mathis — Yea
Santiago — Yea
Mayes — Yea
Frazier — Yea
Chau — Yea
Bloom — Yea
Mullin — Yea
Holden — Yea
Jones-Sawyer — Yea
Wood — Yea
Smith — Yea
Cunningham — Yea
Cooper — Yea
Voepel — Yea
Cooley — Yea
Maienschein — Yea
Rodriguez — Yea
Kiley — Yea
Nazarian — Yea
Ting — Yea
O'Donnell — Yea
Waldron — Yea
Medina — Yea
McCarty — Yea
Friedman — Yea
Bigelow — Yea
Chiu — Yea
Rendon — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Luz Rivas — Yea
Mark Stone — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Not Voting
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea
Seyarto, Kelly Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 6000
Unaffiliated 8000
Republican 2000
Total 16000
% of votes cast 100%0%0%0%
How each member voted (16)
Member Party Vote
Chau — Yea
Levine — Yea
Holden — Yea
Quirk — Yea
Bigelow — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Luz Rivas — Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Rivas, Robert Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea

Official roll call →

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

Passed 12 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 7000
Unaffiliated 3000
Republican 2000
Total 12000
% of votes cast 100%0%0%0%
How each member voted (12)
Member Party Vote
Burke — Yea
Cristina Garcia — Yea
Mark Stone — Yea
Bauer-Kahan, Rebecca Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Grayson, Timothy S. Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Wicks, Buffy Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Yea

Official roll call →

Subjects

finance
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Frequently asked questions

What does AB 511 do?
The Corporate Securities Law of 1968 requires securities offered or sold in this state in an issuer or nonissuer transaction to be qualified through an application, as specified, unless exempt from the qualification requirements. That law exempts, among other transactions, certain transactions not involving any public offering, as prescribed. That law also makes it unlawful, for a person in connection with the offer, sale, or purchase of a security, to engage in fraudulent or misleading acts or omissions. This bill would establish a new exemption from the qualification provisions for an offer or sale of any security for which the issuer is a California or foreign corporation that is not a "blind pool" company, as defined by the Commissioner of Financial Protection and Innovation, is not issuing fractional undivided interests in oil or gas rights or other similar mineral rights, is not an investment company subject to the federal Investment Company Act of 1940, and is not subject to certain reporting requirements of the Securities Exchange Act of 1934. The bill would require, among other criteria, that the offer or sale be conducted in accordance with certain requirements of federal law, except as provided, and that the issuer file a notice of transaction at least 15 days prior to the publication of an initial offer of these securities. Existing law provides that any person who violates a condition of qualification of the offer or sale of a security is liable to any person acquiring the security sold in violation, who may sue to recover the consideration paid for the security with interest thereon at the legal rate or for damages, as specified. This bill would provide for the recovery of reasonable attorney's fees, as specified. Existing law imposes liability on any person who engages in specified unlawful activity to the person who purchases a security from them or sells a security to them, and authorizes the purchaser or seller to sue either for rescission or for damages. The bill would require the court to award reasonable attorney's fees, as specified. The bill would also make technical changes.
Who sponsors AB 511?
AB 511 is sponsored by Muratsuchi, Al (Democratic) and Bauer-Kahan, Rebecca (Democratic).
What is the current status of AB 511?
This bill has been enacted into law. Introduced February 09, 2021. Enacted.
Where can I track AB 511?
Track AB 511 free on One Click Politics — get push/email alerts when it moves.

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