BILL NUMBER: SB 726	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 3, 2015

INTRODUCED BY   Senator Hueso

                        FEBRUARY 27, 2015

    An act to amend Section 25412.5 of the Public Resources
Code, relating to energy.   An act to amend Section
25400 of, and to add Section 25401.2 to, the Corporations Code,
relating to corporate securities. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 726, as amended, Hueso.  Energy conservation
assistance.   Corporate securities: unlawful conduct.
 
   (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.  
   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.  
   (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.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   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.  
   This bill would instead require the commission to take steps to
solicit loan applications that award loans in regions with high peak
loads. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25400 o   f the 
 Corporations Code   is amended to read: 
   25400.  It is unlawful for any person, directly or indirectly, in
this state:
   (a) For the purpose of creating a false or misleading appearance
of active trading in any security or a false or misleading appearance
with respect to the market for any security, (1) to effect any
transaction in a security which involves no change in the beneficial
ownership thereof, or (2) to enter an order or orders for the
purchase of any security with the knowledge that an order or orders
of substantially the same size, at substantially the same time and at
substantially the same price, for the sale of any such security, has
been or will be entered by or for the same or different parties, or
(3) to enter an order or orders for the sale of any security with the
knowledge that an order or orders of substantially the same size, at
substantially the same time and at substantially the same price, for
the purchase of any such security, has been or will be entered by or
for the same or different parties.
   (b) To effect, alone or with one or more other persons, a series
of transactions in any security creating actual or apparent active
trading in such security or raising or depressing the price of such
security, for the purpose of inducing the purchase or sale of such
security by others.
   (c) If such person is a broker-dealer or other person selling or
offering for sale or purchasing or offering to purchase the security,
to induce the purchase or sale of any security by the circulation or
dissemination of information to the effect that the price of any
such security will or is likely to rise or fall because of market
operations of any one or more persons conducted for the purpose of
raising or depressing the price of such security.
   (d) If such person is a broker-dealer or other person selling or
offering for sale or purchasing or offering to purchase the security,
to make, for the purpose of inducing the purchase or sale of such
security by others, any statement which was, at the time and in the
light of the circumstances under which it was made, false or
misleading with respect to any material fact, or which omitted to
state any material fact necessary in order to make the statements
made, in the light of the circumstances under which they were made,
not misleading, and which he knew or had reasonable ground to believe
was so false or misleading.
   (e) 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  induce
  do either of the following: 
    (1)     To  induce  the
purchase or sale of any security by the circulation or dissemination
of information to the effect that the price of such security will or
is likely to rise or fall because of the market operations of any one
or more persons conducted for the purpose of raising or depressing
the price of such security. 
   (2) To employ, hire, or pay any third party to induce action by
any state government official and prohibiting that third party from
disclosing on whose behalf the third party is acting. 
   SEC. 2.    Section 25401.2 is added to the  
Corporations Code   , to read:  
   25401.2.  It is 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. 
   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 25412.5 of the Public
Resources Code is amended to read:
   25412.5.  The commission shall take steps to solicit loan
applications to do all of the following:
   (a) Encourage an equitable distribution of loans statewide.
   (b) Award loans in regions with high peak loads, with high heating
costs, or that have electrical or natural gas system distribution
constraints.
   (c) Place an emphasis on offering these loans in disadvantaged
communities.