2011 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 2011.

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
Revisions to Streamline and Update Corporation Code Provisions Relating to Distributions and Repurchases of Shares (BLS‑2011‑01)
Would simplify, clarify, improve and modernize relevant provisions of the Corporations Code relating to distributions and repurchases of shares.
Business Law Section (Corporations Committee) Amends §§500, 503, 506 and 509 of the Corporations Code and repeals §§502 and 507 of the Corporations Code
Changes to Business Entity Names Registration (BLS‑2011‑02)
Would amend California’s business entity name availability statutes to adopt a uniform standard for evaluating the availability of names for new corporations, limited liability companies and limited partnerships.
Business Law Section (Corporations Committee) Amends §§201(b), 5122(b), 7122(c), 9122(b), 12302(b), 13409, 15901.08(d) and 17052(c) of the Corporations Code and §14417 of the Business and Professions Code; adopts new §§165.7, 165.8, 15901.08(h) and 17052(g) of the Corporations Code
Nonprofit and Unincorporated Association Cleanup (BLS‑2011‑03)
Would clarify various sections of the Corporations Code so that nonprofit corporations and unincorporated associations may have more certainty in their operations.
Business Law Section (Nonprofit & Unincorporated Organizations Committee) Adds §§7914 and 9634 to the Corporations Code, and amends §§1113, 5211, 5212, 5213, 5222, 5235, 5913, 6010, 6019.1, 6321, 6324, 6615, 6716, 7211, 7212, 7213, 8010, 8019.1, 8324, 8615, 9211, 9212, 9213, 9250, 9640, 12311, 12351, 12352, 12353, and 18300 of the Corporations Code
Tax Exemption and Exemption Process for Single Member LLC  (BLS‑2011‑04)
Would conform California tax law to federal tax law regarding the treatment of a single member limited liability company (“LLC”) whose sole member is a tax-exempt entity, and further streamline the process for obtaining an acknowledgement of tax-exempt status.
Business Law Section (Nonprofit & Unincorporated Organizations Committee) Amends §§17941, 17942, 18633.5, and 23701d of the Revenue & Taxation Code
Service of Levies and Related Legal Process on Financial Institutions (BLS‑2011‑05)
Would modernize and clarify the process by which garnishments involving bank accounts are served and processed.
Business Law Section (Consumer Financial Services Committee) Amends §§482.070, 488.455, 488.460, 488.600, 488.610, 488.110, 700.140, 700.150, 700.160, 701.030, 703.570 and 708.510 of, and adds §§684.115 and 701.015 to the Code of Civil Procedure; amends §§952 and 1650 of the Financial Code; amends §1755 of the Unemployment Insurance Code
Revised Uniform Limited Liability Company Act (BLS‑2011‑06)
Would adopt the National Conference of Commissioners on Uniform State Laws’ (“NCCUSL”) Revised Uniform Limited Liability Company Act (“RULLCA”) with certain modifications under California law.
Business Law Section (Partnerships and Limited Liability Companies Committee) Repeals the Beverly-Killea Limited Liability Company Act (Sections 17001 et seq. of the Corporations Code) and adopts the Revised Uniform Limited Liability Company Act
Right to Control Disposition of Remains (T&E‑2011‑07)
Would add the conservator of the person and conservator of the estate to the list of persons who may control the disposition of the decedent’s remains.
Trusts & Estates Section Amends §7100 of the Health and Safety Code
Directed Trusts (T&E‑2011‑08)
Would add a chapter to the Probate Code explicitly authorizing the use of directed trusts and make other conforming changes.
Trusts & Estates Section Adds a new §85, a new §16065 and a new Chapter 6 to Part 4 of Division 9 (Sections 16600 et seq.) to the Probate Code; amends §§300, 1304, 17200, 17202, 17203 and 17205 of the Probate Code
Repeal of the Rule Against Perpetuities (T&E‑2011‑09)
Would repeal the Rule Against Perpetuities and clarify the application of the rule against restraints on the power of a trustee to sell or transfer trust property in California.
Trusts & Estates Section Amends Article 2, Chapter 2, Title 2, Part 1, Division 2 (Sections 711 and 722 through 726) of the Civil Code; repeals Part 2, Division 11 (Sections 21200 et seq.) of the Probate Code; adopts a new Part 2, Division 11 (Sections 21200-21204) of the Probate Code
Elective Administration of Decedents’ Estates (T&E‑2011‑10)
Would permit eligible beneficiaries in certain narrow circumstances to choose between “Elective Administration” and formal administration of a decedent’s estate.
Trusts & Estates Section Adds a new Article 10 to Chapter 4 of Part 2 of Division 7(sections 8600 to 8623) of the Probate Code, amends the Independent Administration of Estates Act, Part 6 of Division 7 (sections 10400 to 10592 ) of the Probate Code
Revised Probate Code Section 16350 (Uniform Principal and Interest Act) (T&E‑2011‑11)
Would bring greater clarity and fairness to the categorization of amounts received from business entities as between principal and income.
Trusts & Estates Section Amends § 16350 of the Probate Code