Statutes of 2017 - Legislative Summary

Following are summaries of the bills enacted into law that may affect filings made and business conducted with the Secretary of State's office.  Unless otherwise indicated, these measures will take effect on January 1, 2018.  To research any legislation or existing law, please refer to the California Legislative Information website.

Business Entities

Chapter 27, Statutes of 2017 (SB 94 Committee on Budget and Fiscal Review) (Effective June 27, 2017)

Enacts the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) permitting licensed commercial cannabis activities and, commencing January 1, 2018, authorizes three or more natural persons with California state cultivation licenses, to form a cannabis cooperative corporation by filing articles of incorporation with the Secretary of State. Shareholders of a cannabis cooperative association are limited to cultivators who hold only a single Type 1 or Type 2 license.  Shareholders also cannot grow more than four acres of total canopy size of cultivation throughout California.  Additional limitations are contained in new Business and Professions Code sections 26220 et seq.  More information regarding Type 1 or Type 2 cultivation licenses, is available at Beginning January 1, 2018, Cannabis Cooperative Association Articles of Incorporation will be available on our cannabizfile website.

Chapter 129, Statutes of 2017 (AB 1093 Chen)

Permits substituted service of process to be made if the only address reasonably known for a principal or agent of the business is a commercial mailbox, by leaving a copy of the summons and complaint with the commercial mailbox provider.

Chapter 267, Statutes of 2017 (SB 340 Hertzberg)

Authorizes a trustee, liquidating agent, responsible officer, or other representative appointed by the court for a corporation, to execute and file a certificate of dissolution and provides specific content information for the certificate of dissolution when a bankruptcy or reorganization proceeding has been initiated. 

Chapter 417, Statutes of 2017 (AB 1696 Committee on Insurance) and Chapter 534, Statutes of 2017 (AB 1699 Committee on Insurance)

Redefines the process for insurers to change the state of their principal place of business and requires an out-of-state insurer transferring its principal place of business (redomesticating) to California to file articles of incorporation with the Secretary of State, as prescribed, and would require a California insurer redomesticating to another state to file a statement of redomestication with the Secretary of State.

Chapter 569, Statutes of 2017 (SB 559 Morrell)

Extends the sunset provision that permits limited liability companies to be licensed under the Private Investigator Act to January 1, 2021, adds claim reporting requirements and makes other conforming changes. 

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Special Filings

Chapter 27, Statutes of 2017 (SB 94 Committee on Budget and Fiscal Review) (Effective June 27, 2017)

Commencing January 1, 2018, permits commercial cannabis products and services to be registered with the Secretary of State, provided that: (1) the mark is lawfully in use in commerce within California; and (2) matches the classification of goods and services adopted by the United States Patent and Trademark Office.   Note: Not all cannabis-related products can be registered in California due to the need to meet federal classifications.  

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