Several states achieved important business legislation milestones during the month of May. Please see below for a summary of the new laws in Alabama, California, Connecticut, Delaware, and New Hampshire.
Business Organization Legislation
ALABAMA
The governor signed House Bill 230 on 5/6/2024 to repeal the requirement that corporations provide an annual report to the secretary of state. The new law takes effect on 10/1/2024.
The governor signed Senate Bill 112 on 5/17/2024 to amend the Alabama Business and Nonprofit Entities Code. The amendments clarify that the location of a registered agent must be in the state and make other amendments to be consistent with Delaware law changes. The new law has staggered effective dates, with portions becoming effective on 6/1/2024 and other sections becoming effective at various times throughout the year with the final portion taking effect on 1/1/2025.
CALIFORNIA
Senate Bill 1168, which would provide remedies for a person who learns or reasonably suspects that their personal identifying information (PII) has been used unlawfully in a business entity filing, passed the Senate on 5/9/2024. The bill would (i) authorize the secretary of state to cancel a limited liability company (LLC) or corporation upon the entry of a court order; and (ii) authorize a person who has learned their PII has been used unlawfully in a business filing to file a disclaimer of proper authority with the secretary of state.
Senate Bill 1201, which would require limited liability companies to report as part of the entity’s biennial statement the name and complete business or residence addresses of any beneficial owner, passed the Senate on 5/21/2024. The bill would also allow the secretary of state to increase by rule the fees charged for filing the information statements required for certain business entities.
CONNECTICUT
Senate Bill 428, which would revise business registration requirements for filing with the secretary of state, passed the Senate on 5/6/2024 and the House on 5/8/2024. Among other changes, this bill would require businesses to provide a valid email address to the secretary of state and allow the secretary of state to provide certain notices to businesses by email instead of by registered or certified mail as provided by current law. The bill also prohibits the use in advertising by a business of an assumed name that suggests a business is in a municipality unless it is located there. The bill is pending delivery to the governor.
DELAWARE
The governor signed House Bill 338 on 5/30/2024 to make various updates to the statutory trust law. The new law takes effect on 8/1/2024.
NEW HAMPSHIRE
The House concurred in Senate amendments to House Bill 645 (2023) on 5/30/2024. This bill would authorize the creation of distributed autonomous organizations as legal entities in the state. The bill is now pending delivery to the governor.
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For informational purposes only; content does not constitute legal advice.