2016 Legislative Proposals

The following are legislative proposals developed by various Sections and/or Committees of the State Bar for possible introduction in the California Legislature in 2016.

For information concerning these proposals contact:

  • The person(s) named on the individual proposals;
  • Saul Bercovitch, Legislative Counsel, Office of Governmental Affairs; or
  • Mark Weideman, Legislative Representative for the State Bar Sections.

Title & Brief Description Sponsor Code §§ Affected
Permitting Franchisors Without a Currently Registered Disclosure Document to Exhibit at a Trade Show
(BLS-2016-01)


Permitting Franchisors Without a Currently Registered Disclosure Document to Exhibit at a Trade Show
(BLS-2016-01)
(ADA Version)


Would permit franchisors without a currently registered disclosure document to exhibit at a trade show under specified conditions, including contemporaneous notice that the franchisor may not sell a franchise in California until it has satisfied the registration and disclosure requirements imposed by the Franchise Investment Law.
Business Law Section (Franchise Law Committee)
Adds a new statute to the Franchise Investment Law (Title 4, Division 5, Part 1 of the Corporations Code) and amends Section 31013 of the Corporations Code
Proposed New Statutory Exemption for Negotiated Sales
(BLS-2016-02)


Proposed New Statutory Exemption for Negotiated Sales
(BLS-2016-02)
(ADA Version)


Would create a new statutory exemption for negotiated sales, addressing practical problems that have been created by the current statutory scheme and helping to educate prospective franchise buyers about the sales process.
Business Law Section (Franchise Law Committee) Amends Section 31109.1 of the Corporations Code
Modification and Termination of Trusts
(T&E-2016-03)


Modification and Termination of Trusts
(T&E-2016-03)
(ADA Version)


Would clarify the Probate Code and provide for a modest expansion of the ability of consenting beneficiaries to modify or terminate a trust with court approval.
Trusts & Estates Section

Amends Sections 15403, 15404, and 15406 of the Probate Code
Marital Deduction Trusts
(T&E-2016-04)


Marital Deduction Trusts
(T&E-2016-04)
(ADA Version)


Would give California marital deduction trusts the benefit of both flexible investment strategy under modern definitions of income and the statutory backstop to ensure that the trust qualifies for the estate tax marital deduction, and would reduce the administrative burden on marital deduction trusts by eliminating unnecessary requirements to qualify for that deduction.
Trusts & Estates Section
Amends Section 21524 of the Probate Code

Powers of Appointment
(T&E-2016-05)


Powers of Appointment
(T&E-2016-05)
(ADA Version)


Would 1) define the term “power of appointment”; 2) codify the doctrine of selective allocation; 3) provide guidance regarding the disposition of unappointed property in the case of partial exercise of a power of appointment; 4) clarify the rights of creditors to reach property subject to a general power of appointment held by the debtor; and 5) clarify the rights of creditors to reach property subject to a special power of appointment held by the debtor.
Trusts & Estates Section

Adds Sections 675 and 676 to the Probate Code, and amends Sections 610, 681 and 683 of the Probate Code

Notice of Proposed Action by Trustee
(T&E-2016-06)


Notice of Proposed Action by Trustee
(T&E-2016-06)
(ADA Version)


Would modify the Notice of Proposed Action procedure, increasing the efficiency of trust administrations, enhancing communication between trustees and beneficiaries, and reducing the burden on the courts, without diminishing any rights or protections currently afforded beneficiaries.
Trusts & Estates Section
Amends Sections 16501 and 16502 of the Probate Code

Spousal Property Petitions
(T&E-2016-07)


Spousal Property Petitions
(T&E-2016-07)
(ADA Version)


Would clarify that the court may issue an order determining the separate or community character of property when a request for that determination has been made by a petitioning or responding party to a spousal property petition.
Trusts & Estates Section
Amends Sections 13651 and 13656 of the Probate Code
Uniform Principal and Income Act
(T&E-2016-08)


Uniform Principal and Income Act
(T&E-2016-08)
(ADA Version)


Would correct the definition of “capital asset.”
Trusts & Estates Section
Amends Section 16350 of the Probate Code