Contact: Christina Oatfield, (415) 8285627, Christina@theselc.org
OAKLAND, CA.— Sponsored by the Sustainable Economies Law Center (SELC), the California Local Economies Securities Act (AB2751) passed through the CA Assembly Banking and Finance Committee. LESA will exempt certain securities offerings from California permit requirements, and therefore open doors to raising capital for a variety of enterprises necessary to the economic and ecological health of California, including small farms, agricultural land trusts, cooperatives, nonprofit organizations with business income, and renewable energy systems. It was introduced by Assemblymember Cheryl Brown.
“Small businesses and regular individuals are are often shut out from investment opportunities in which they may wish to participate. Fewer options for financing means fewer development opportunities for community based businesses.” said Severine von Tscharner Fleming, Director of Greenhorns, a national organization working to support the incoming generation of sustainable farmers.
“Many farmers working in unconventional agriculture struggle to find access to credit. Helping new farmers gain smoother access to credit is crucial for growing these small family businesses.”
AB2751 carves out securities exemptions for Farms, Agricultural Land Trusts, Renewable Energy Project, nonprofit organizations, and other specified enterprises so they can raise small investments without a costly permit. Successfully navigating the current permitting process can cost tens of thousands of dollars – a high barrier for enterprises that would benefit from a small public offering.
AB2751 is currently being considered in the 2016 legislative session.