CA AB2096

Authorizes qualification by notification for securities offerings up to $1,000,000 that meet federal exemption requirements under Regulation D Section 230.504, provided aggregate sales to any investor do not exceed $5,000 (or higher amount set by commissioner) within a 12-month period.

Requires issuers to file a Small Company Offering Registration disclosure document on Form U-7 with specified statements, and provide financial statements scaled by offering size (certified statements for offerings under $100,000; reviewed statements for $100,000-$500,000; audited statements for over $500,000).

Mandates all offering funds be held in a separate third-party escrow account until the minimum offering amount is reached, with funds returned to investors if minimum is not reached within one year.

Requires participating issuers, officers, directors, and beneficial owners to comply with "bad actor" disqualification standards under federal Regulation D Section 230.506(d).

Provides that courts shall award attorney's fees and costs to prevailing purchasers in actions against persons violating securities qualification requirements and may award treble or punitive damages.