CA SB726

Requires the Commissioner of Business Oversight to adopt regulations prohibiting fraudulent and manipulative practices by persons undertaking short sales in the securities market.

Removes provisions that would have made it unlawful to knowingly or recklessly make untrue statements of material fact to state government officials with intent to manipulate publicly traded company stock values.

Specifies that no reimbursement is required under the California Constitution because any costs incurred by local agencies or school districts result from changes to criminal penalties or definitions, which are exempt from reimbursement requirements.