Legislation Effective January 2024

Legislation Effective January 2024

ALABAMA

House Bill 267 (Act 2023-503) signed by the governor June 14 and effective January 1, 2024, amends Title 10A, the Business and Nonprofit Entity Code, to add a new Chapter 3A Nonprofit Corporation Law and to include new requirements for a plan of entity conversion.

CALIFORNIA

Assembly Bill 878 (Chapter 2023-020) signed by the governor June 29 and effective January 1 amends requirements for Fictitious Business Name (FBN) statements filed in county filing offices to replace the residential address of the registrant with a business mailing address.

Assembly Bill 231 (Chapter 2023-115) signed by the governor July 27 and effective January 1, 2024, amends the corporation code to provide additional flexibility to corporations to offer audiovisual or audio-only participation in shareholder or member meetings by remote communications.

Senate Bill 446 (Chapter 2023-151) signed by the governor September 1 and effective January 1, 2024 conforms the Nonprofit Corporation Law and the Cooperative Corporation Law to provisions in the General Corporation Law to ratify through the board of directors or members or validate upon filing of a petition in superior court the retroactive correction of a past corporate action that is otherwise lawful but not in compliance with the corporation law or bylaws. 

Assembly Bill 1765 (Chapter 209) signed by the governor September 22 and effective January 1, 2024, expands the Franchise Tax Board’s authority to enter into installment agreements with taxpayers who have outstanding tax liabilities and updates terminology for the conditional revivor process to ensure equal treatment for different types of LLCs classified as partnerships or disregarded entities.

Assembly Bill 783 (Chapter 223) signed by the governor September 23 and effective January 1, 2024 requires a city, county, or city and county that issues business licenses, equivalent instruments, or permits to provide written notice to each applicant for a new or renewed business license, equivalent instrument, or permit of the requirement that all single-user toilet facilities in any business establishment, place of public accommodation, or government agency be identified as all-gender toilet facilities.

Assembly Bill 1458 (Chapter 303) signed by the governor October 4 and effective January 1 relates to Common Interest Development governance and authorizes a lower quorum requirement for elections of directors.

Assembly Bill 258 (Chapter 423) signed by the governor October 8 and effective January 1 creates an internet portal on the GO-Biz website of the Governor’s Office of Economic Development to support small businesses in locating access to appropriate resources.

Assembly Bill 1756 (Chapter 478) signed by the governor October 8 and effective January 1 changes the name of the Registry of Charitable Trusts to the Registry of Charities and Fundraisers among many other provisions in a judiciary omnibus bill.

Senate Bill 71 (Chapter 861) signed by the governor October 13 and effective January 1, 2024, amends existing law to increase the jurisdiction threshold for small claims actions by natural persons from $10,000 to $12,500 and for limited civil cases from $25,000 to $35,000.

Senate Bill 746 (Chapter 876) signed by the governor September 30 and effective January 1, 2024, requires a business entity that uses its online products or services to target information to its users, for political purposes, to disclose that targeting on a public report that is filed with the Secretary of State.

CANADA

The Hague Conference status table for Convention 12 abolishing the requirement of legalization for foreign public documents indicates Canada’s accession on May 12, 2023, with entry in force January 11, 2024 for Canada to accept apostilles and no longer require legalization and authentication of documents.  A Canadian government statement can be accessed at Canada joins Apostille Convention to facilitate use of public documents abroad – Canada.ca. The Hague Conference status table can be accessed at HCCH | #12 – Status table

ILLINOIS

House Bill 2145 (Public Act 26) signed by the governor June 9 and effective January 1, 2024, relates to license issuance, renewal, suspension and revocation for business entities found by the Workers Compensation Commission to have failed to secure obligations.

House Bill 1197 (Public Act 121) signed by the governor June 30 and effective January 1 amends the Solicitation for Charity Act and the thresholds for written reports to the Attorney General.

House Bill 2130 (Public Act 142) signed June 30 and effective January 1 creates the Insurance Data Security Law requiring information security programs and investigation and notifications of cybersecurity events.

Senate Bill 1495 (Public Act 216) signed by the governor June 30 and effective January 1 relates to the public adjuster article of the Insurance Code.

House Bill 3017 (Public Act 538) signed by the governor August 11 and effective January 1, 2024 amends the Business Assistance and Regulatory Reform Act to increase transparency and accessibility of permitting processes for covered projects involving construction of infrastructure for renewable or conventional energy production, electricity transmission, surface transportation, aviation, ports and waterways, water resource development, broadband, pipelines, or manufacturing.

Senate Bill 1675 (Public Act 555) signed by the governor August 11 and effective January 1, 2024, amends provisions related to property tax lien procedures.

IOWA

House Bill 655 signed by the governor June 1 and effective January 1, 2024, amends Chapter 489, the LLC Act, including among others registration of names, appointment and resignation of registered agent, address of the LLC’s principal office, and correction of filed records.

KANSAS

House Bill 2391 signed by the governor April 21 and effective January 1, 2023 (implementation postponed until January 1, 2024) requires each business entity to file a biennial business entity information report, instead of the currently required annual report, with a fee of $80 for each biennial report. Business entities formed in even-numbered years will be required to file reports in even numbered years, and business entities formed in odd-numbered years will be required to file reports in odd-numbered years, except the bill will allow reports for multiple limited liability entities, regardless of when the entities were formed, to be filed at one time, as long as each report is filed in the first year the biennial report is due and in odd-numbered years thereafter. The bill also allows for business filings with the Secretary to be signed via electronic signature.

KENTUCKY

House Bill 284 (Act No. 18) signed by the governor March 17 and effective January 1, 2024, established electronic registration system for motor vehicle titles.

MONTANA

Senate Bill 269 (Chapter 360) signed by the governor May 2 and effective January 1, 2024, establishes consumer protections and disclosures in litigation financing.

NEVADA

Assembly Bill 260 (Chapter 455) signed by the governor June 15 and effective January 1, 2024, provides for exemption for veteran’s service organizations recognized by the Secretary of Veterans Affairs and any agent or officer from state filing fees and business license fees.

OREGON

House Bill 2274 (Chapter 494) signed by the governor July 31 and effective January 1, 2024, relates to inquiries by the Director of the Department of Consumer and Business Services relating to securities regulation.

PENNSYLVANIA

House Bill 2057 (Act 122) signed by the governor November 3 and effective January 2, 2023 (implementation moved to 2025) contains significant amendments to business entity statutes. Effective in January 2024 entities will be required to file an annual report (corporations by July 1, LLCs by October 1, and other entity types by December 31), and the Department of State may revoke entities for failure to file annual reports and file reinstatements. The bill also contains provisions for ratification of defective entity actions.

TENNESSEE

Senate Bill 268 signed by the governor April 4 and effective January 1, 2024, enacted the Money Transmission Modernization Act which requires licensing by the Department of Financial Institutions (DFI) for money transmission services.

UTAH

House Bill 357 signed by the governor March 13 and effective January 1, 2024, adopted the Decentralized Autonomous Organizations Act to allow a DAO that has not registered as a for-profit or non-profit entity to be treated as the equivalent of a domestic LLC.