Business entities: limited liability companies.
The new legislation is expected to have a significant impact on how business entities report and maintain their information with the Secretary of State. By imposing perjury penalties for false reporting, it creates a more stringent framework for accountability. These changes also introduce an expanded definition of 'qualified entities', which includes not just domestic corporations but also foreign entities doing business in California. The bill imposes an obligation on these entities to ensure that their reported information is accurate and up-to-date.
Assembly Bill 683, introduced by Assembly Member Davies, establishes new reporting requirements for various business entities in California. This bill mandates that qualified entities—including corporations, partnerships, and limited liability companies—provide specific business information to the Secretary of State. This would require these entities to submit a certification under penalty of perjury, which aims to enhance the transparency and reliability of corporate records kept by the state.
One potential point of contention could arise from the balance between increased regulatory scrutiny and the ease of conducting business in California. Supporters of the bill argue that it will reduce fraud and enhance public confidence in business registries, while critics may contend that additional bureaucratic requirements could burden small businesses, particularly those that lack resources to comply with extensive reporting mandates. Furthermore, the provision that no reimbursement for costs incurred by local agencies or school districts is required may raise concerns about shifting responsibilities without financial support.