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AB-1863 Corporate liability: statute of limitations.(2003-2004)

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CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Bill
No. 1863

Introduced  by  Assembly Member Harman

February 02, 2004

An act to amend Section 25506 of the Corporations Code, relating to securities.


LEGISLATIVE COUNSEL'S DIGEST


AB 1863, as introduced, Harman. Corporate liability: statute of limitations.
The Corporate Securities Act of 1968 makes it unlawful for a person to engage in certain fraudulent practices and prohibited acts. Existing state law authorizes a civil action against a person who willfully violates these provisions, which must be brought within 4 years of the violation or within one year after the plaintiff’s discovery of the violation, whichever occurs first.
This bill would extend the time that a plaintiff has to file a civil action to within 5 years after the violation or within 2 years of the plaintiff’s discovery of the violation, whichever occurs first.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 25506 of the Corporations Code is amended to read:

25506.
 No action shall be maintained to enforce any liability created under Section 25500, 25501, or 25502 (or Section 25504 or Section 25504.1 insofar as they related to those sections) unless brought before the expiration of four five years after the act or transaction constituting the violation or the expiration of one year two years after the discovery by the plaintiff of the facts constituting the violation, whichever shall first expire.