Statutes of 2013 – Legislative Summary



Following are summaries of bills enacted into law that may affect filings made and business conducted with the Secretary of State’s office. Unless otherwise indicated, these measures took effect on January 1, 2014. To research any legislation or existing law, please refer to the California Office of Legislative Counsel.


Business Entities

Chapter 180, Statutes of 2012
Chapter 181, Statutes of 2012

Recast and recodify the Davis-Stirling Common Interest Development Act by repealing California Civil Code, Title 6, Part 4, Division 2 and establishing California Civil Code, Part 5, Division 4, and related cross-references in other statutes, pursuant to recommendations from the California Law Revision Commission.

These changes are intended to have the governing statutes be more logical, organized and easier for homeowners and volunteer board members to navigate through, as well as providing guidance on the general supremacy of statutes over governing documents and the priority of authority for different types of governing documents.

Chapter 605, Statutes of 2013

Establishes the Commercial and Industrial Common Interest Development Act, which separates out two sub-types of Common Interest Developments (CIDs): Commercial and Industrial. Provides similar regulation of these sub-types as did the Davis-Stirling Common Interest Development Act, but the sub-types are exempted from portions of the Davis-Stirling Act intended for residential CIDs. A CID that is used for commercial or industrial purposes will need to identify itself as being this type of CID in its Articles of Incorporation, Statements by Common Interest Development and Statements of Information.

Chapter 419, Statutes of 2012

Repeals the Beverly-Killea Limited Liability Company Act and enacts the California Revised Uniform Limited Liability Company Act, affecting the formation and operation of limited liability companies, but does not require existing limited liability companies to submit any amendment filings to conform to the new law.

Changes the name criteria for a limited liability company to provide that the name be “distinguishable in the records” of the Secretary of State. Current law regarding the need for specified endings, prohibited words and prohibiting misleading names remain the same.

Requires requests for limited liability company name reservations and transfers of name reservations to be made in writing, although name availability inquiries (not actual name reservations) through the Prepay Priority Telephone Service will remain available.

Provides that an individual who signs specified records affirms under penalty of perjury that the information in the record is accurate.

Chapter 364, Statutes of 2013

Requires one-half of the ($5) disclosure fee paid by domestic stock and foreign corporations when filing the required initial and annual Statements of Information to be deposited into the new Business Programs Modernization Fund established by this bill (the other half of the disclosure fee continues to be deposited into the Victims of Corporate Fraud Compensation Fund). The purpose of the new fund is to develop and maintain online services.

Chapter 537, Statutes of 2013

Transfers the administration of the California Small Business Financial Development Corporation Law to the California Infrastructure and Economic Development Bank (Bank). The Bank will be responsible for appointing an Executive Director, who will then appoint a Program Manager to manage the California Small Business Finance Center. The California Small Business Finance Center will have the duties that currently are assigned to the Director under existing law.

Requires corporations subject to the California Small Business Financial Development Corporation Law to amend their Articles of Incorporation to remove specified provisions and amend the corporation name when the Bank terminates the corporation’s ability to grant and guarantee loans.

Chapter 790, Statutes of 2013

Establishes the Home Care Services Consumer Protection Act which, among other provisions, requires home care organizations which have their principal place of business in another state to register with the Secretary of State to transact business and have an office in California before providing home care services in California.


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Notary Public

Chapter 78, Statutes of 2013

Requires an officer, as identified in California Civil Code section 1181, to use the exact certificate of acknowledgment prescribed in California Civil Code section 1189, not a substantially similar form, when taking an acknowledgment. Requires the exact form of certificate prescribed by California Civil Code section 1195 to be used for proof of execution of an instrument, rather than a substantially similar form. The wording in the form also has been amended.

Chapter 159, Statutes of 2013

Allows an inmate identification card to be used as a form of identification for establishing satisfactory evidence of the identity of the person making the acknowledgment if the person is an inmate in custody in California state prison and if the card has been issued by the California Department of Corrections and Rehabilitation and is current or has been issued within 5 years, whether or not the identification card contains specific additional identifying information such as a photograph, description of the person, signature, or serial number.

Chapter 571, Statutes of 2013

Prohibits notaries public from participating in practices that amount to price gouging when providing services associated with filing an application for the deferred action for childhood arrivals program announced by the United States Secretary of Homeland Security. A violation is cause for the revocation or suspension of a commission as a notary public by the Secretary of State.

Chapter 618, Statutes of 2013

Adds conviction for theft of certain types of animals and livestock to the list of crimes that disqualify a person from becoming a notary public or subject a person to being disciplined if already a notary public.


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Special Filings

Chapter 574, Statutes of 2013

Revises several provisions that affect immigration consultants and effective July 1, 2014 increases the immigration consultant surety bond filed with the Secretary of State’s office from $50,000 to $100,000. All active immigration consultants who do not file the new $100,000 surety bond by July 1, 2014 will be in violation of the law, and the Secretary of State’s office will begin issuing cease and desist orders to immigration consultants and will notify the California Attorney General's office.


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Uniform Commercial Code

Chapter 531, Statutes of 2013

Revises several provisions of Article 9 of the Uniform Commercial Code (UCC) relating to secured transactions, including updating definitions, clarifications and revising filing forms that impact filers of financing statements.


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Business Programs




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