Amended in Assembly September 3, 2015

Senate BillNo. 726


Introduced by Senator Hueso

February 27, 2015


begin deleteAn act to amend Section 25412.5 of the Public Resources Code, relating to energy. end deletebegin insertAn act to amend Section 25400 of, and to add Section 25401.2 to, the Corporations Code, relating to corporate securities.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 726, as amended, Hueso. begin deleteEnergy conservation assistance. end deletebegin insertCorporate securities: unlawful conduct.end insert

begin insert

(1) The Corporate Securities Law of 1968 generally regulates the offer and sale of corporate securities within the state, and specifically makes specified conduct with regard to the offer and sale of corporate securities unlawful.

end insert
begin insert

This bill would make it unlawful for any person, directly or indirectly, in this state, for a consideration, received directly or indirectly from a broker-dealer or other person selling or offering for sale or purchasing or offering to purchase the security, to employ, hire, or pay any 3rd party to induce action by any state government official and prohibiting that 3rd party from disclosing on whose behalf the 3rd party is acting. The bill would also make it unlawful for any person, in connection with the offer, sale, or purchase of a security, directly or indirectly, to make a false or misleading statement to any state government official in order to cause an investigation of a public company.

end insert
begin insert

(2) 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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
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The Energy Conservation Assistance Act of 1979 authorizes any eligible institution to submit an application to the State Energy Resources Conservation and Development Commission for an allocation for the purpose of financing all or a portion of the costs incurred in implementing a project relating to energy audits, energy conservation and operating procedures, and energy conservation measures in existing and planned buildings and facilities, energy conservation projects, and technical assistance programs. Existing law requires the commission to take steps to solicit loan applications to do certain things, including awarding loans in regions with high summer peak loads.

end delete
begin delete

This bill would instead require the commission to take steps to solicit loan applications that award loans in regions with high peak loads.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 25400 of the end insertbegin insertCorporations Codeend insertbegin insert is
2amended to read:end insert

3

25400.  

It is unlawful for any person, directly or indirectly, in
4this state:

5(a) For the purpose of creating a false or misleading appearance
6of active trading in any security or a false or misleading appearance
7with respect to the market for any security, (1) to effect any
8transaction in a security which involves no change in the beneficial
9ownership thereof, or (2) to enter an order or orders for the
10purchase of any security with the knowledge that an order or orders
11of substantially the same size, at substantially the same time and
12at substantially the same price, for the sale of any such security,
13has been or will be entered by or for the same or different parties,
14or (3) to enter an order or orders for the sale of any security with
15the knowledge that an order or orders of substantially the same
16size, at substantially the same time and at substantially the same
17price, for the purchase of any such security, has been or will be
18entered by or for the same or different parties.

19(b) To effect, alone or with one or more other persons, a series
20of transactions in any security creating actual or apparent active
21trading in such security or raising or depressing the price of such
P3    1security, for the purpose of inducing the purchase or sale of such
2security by others.

3(c) If such person is a broker-dealer or other person selling or
4offering for sale or purchasing or offering to purchase the security,
5to induce the purchase or sale of any security by the circulation or
6dissemination of information to the effect that the price of any
7such security will or is likely to rise or fall because of market
8operations of any one or more persons conducted for the purpose
9of raising or depressing the price of such security.

10(d) If such person is a broker-dealer or other person selling or
11offering for sale or purchasing or offering to purchase the security,
12to make, for the purpose of inducing the purchase or sale of such
13security by others, any statement which was, at the time and in the
14light of the circumstances under which it was made, false or
15misleading with respect to any material fact, or which omitted to
16state any material fact necessary in order to make the statements
17made, in the light of the circumstances under which they were
18made, not misleading, and which he knew or had reasonable ground
19to believe was so false or misleading.

20(e) For a consideration, received directly or indirectly from a
21broker-dealer or other person selling or offering for sale or
22purchasing or offering to purchase the security, tobegin delete induceend deletebegin insert do either
23of the following:end insert

24begin insert(1)end insertbegin insertend insertbegin insertToend insertbegin insert induce end insertthe purchase or sale of any security by the
25circulation or dissemination of information to the effect that the
26price of such security will or is likely to rise or fall because of the
27market operations of any one or more persons conducted for the
28purpose of raising or depressing the price of such security.

begin insert

29(2) To employ, hire, or pay any third party to induce action by
30any state government official and prohibiting that third party from
31disclosing on whose behalf the third party is acting.

end insert
32begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 25401.2 is added to the end insertbegin insertCorporations Codeend insertbegin insert,
33to read:end insert

begin insert
34

begin insert25401.2.end insert  

It is unlawful for any person, in connection with the
35offer, sale, or purchase of a security, directly or indirectly, to make
36a false or misleading statement to any state government official
37in order to cause an investigation of a public company.

end insert
38begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
39Section 6 of Article XIII B of the California Constitution because
40the only costs that may be incurred by a local agency or school
P4    1district will be incurred because this act creates a new crime or
2infraction, eliminates a crime or infraction, or changes the penalty
3for a crime or infraction, within the meaning of Section 17556 of
4the Government Code, or changes the definition of a crime within
5the meaning of Section 6 of Article XIII B of the California
6Constitution.

end insert
begin delete7

SECTION 1.  

Section 25412.5 of the Public Resources Code
8 is amended to read:

9

25412.5.  

The commission shall take steps to solicit loan
10applications to do all of the following:

11(a) Encourage an equitable distribution of loans statewide.

12(b) Award loans in regions with high peak loads, with high
13heating costs, or that have electrical or natural gas system
14distribution constraints.

15(c) Place an emphasis on offering these loans in disadvantaged
16communities.

end delete


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