Following are summaries of bills enacted into law that may directly affect filings made and business conducted with the Secretary of State’s office. Unless otherwise indicated, these measures took effect on January 1, 2002. To research any legislation or existing law, please refer to the California Legislative Information website.
Business Entities
Chapter 50 (SB 324 Ackerman)
This act provides that in mergers in which a domestic disappearing corporation is merging into a surviving corporation which is either a domestic corporation or a foreign corporation qualified to do business in California, the Secretary of State shall file the merger without a certificate of satisfaction and notify the Franchise Tax Board of the merger. Amends Corporations Code § 1107.5.
Chapter 391 (AB 898 Leach)
Tax Levy
Effective October 1, 2001
This act, effective October 1, 2001 as a tax levy, sets a permanent annual fee schedule for limited liability companies, based on total annual income, as follows:
- If the total income is at least $250,000 but less than $500,000, the annual fee would be $900.
- If the total income is at least $500,000 but less than $1,000,000, the annual fee would be $2,500.
- If the total income is at least $1,000,000 but less than $5,000,000, the annual fee would be $6,000.
- If the total income is $5,000,000 or more, the annual fee would be $11,000.
Chapter 425 (SB 263 Johnson)
This act requires the Secretary of State’s office to include with instructional materials provided in conjunction with limited liability partnership and limited liability company registration forms a notice that filing the registration will obligate the limited liability partnership or limited liability company to pay an annual tax for that calendar year to the Franchise Tax Board. The notice would have to be updated annually to specify the dollar amount of the tax.
Chapter 595 (AB 1596 Shelley)
This act extends until January 1, 2007, the sunset date allowing architectural firms to register as limited liability partnerships or foreign limited liability partnerships.
Notary Public
Chapter 39 (AB 1323 Mcleod)
This act changes procedures relating to marriage licenses. The only change of interest to the Secretary of State’s office is a provision requiring the county clerk to exercise reasonable discretion in deciding whether to approve the application by a notary public for approval to authorize confidential marriages.
Special Filings
Chapter 178 (SB 916 Ackerman)
This act would create an exemption from the definition of a "discount buying organization" businesses that meet a specific set of requirements. The requirement that affects the Secretary of State’s office is that a business seeking this exemption must file proof with the Secretary of State that the business has established a $50,000 escrow account for the purpose of providing refunds to its members.
Chapter 245 (AB 405 Salinas)
This act contains an exemption from purchasing rail tickets for certain disabled passengers when using a bus feeder service on a specified bus route on State Highway Route 17. The exemption remains in effect until January 1, 2004, or until the Department of Transportation notifies the Secretary of State that all motor carriers that operate regular service on the specified route operate only vehicles that are fully accessible to passengers in wheelchairs.
Chapter 304 (SB 1194 Romero)
This act makes changes to the law regulating immigration consultants. The provision that affects the Secretary of State’s office is the repeal of the portions of Business and Professions Code § 22443.1 that previously allowed an immigration consultant to file with the Secretary of State a deposit in lieu of filing a bond. The portions of the statute requiring an immigration consultant to file a bond with the Secretary of State are still in effect.
Chapter 893 (AB 25 Migden and Hertzberg)
This act expands the rights and privileges available to persons who are registered with the Secretary of State as domestic partners. The only change that affects the Secretary of State’s office is to extend the eligibility to form a domestic partnership to opposite–sex couples in which at least one of the partners is 62 years of age or older and eligible for Social Security old–age benefits. Previously, eligibility for domestic partnership registration for opposite–sex couples required that both partners be at least 62 years of age and eligible for Social Security old–age benefits.
