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INDUSTRY NEWS

UPCOMING EVENTS

Industry News

California: Consumer Privacy Law

Assembly Bill 375, also known as the California Consumer Privacy Act of 2018, which goes into effect January 1, 2020, will create unprecedented consumer protections and is expected to pave the way for other states to follow suit. The law will give consumers the right to know what personal information is being collected and shared, as well as the right to request that businesses don’t share or sell any of their personal information without being discriminated against (e.g. being denied goods or services, being charged different prices, etc). The law also comes with strict disclosure rules about the data being collected and empowers the California Attorney General to fine businesses that fail to comply. As the bill does not go into effect until 2020, it is possible that it will be amended before going live. To read Assembly Bill 375 in its entirety, click here.

Delaware: Corporate Sustainability and Transparency

Effective October 1, 2018, Delaware business entities have the option to file for a Certification of Adoption of Transparency and Sustainability Standards (CATSS), a voluntary public display of an entity’s commitment to corporate responsibility and global sustainability. While the act enables an entity to customize the standards by which it assesses and reports the impact of its activities on society and/or the environment to its specific needs, it does require that the entity’s governing body approve such standards and assessment measures as well as make them publicly available. Entities that choose to participate must complete the required filing and pay any associated fees, after which the entity will be considered a “reporting entity.” Reporting entities must then file annually, including a renewal statement that addresses any changes made to the entity’s standards and assessment measures. To learn more about House Bill 310 and the new certificate, read the bill here.

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Delaware: Statutory Trust Filing Fee Changes

Effective August 1, 2018, most statutory trust filing fees increased from $200 to $500. Filing fees for Resignation of Agent with Appointment and Blanket Change of Office/Name for Agent/Trustee remained unchanged at $200. Filing fees for Resignation of Agent without Appointment remained at $2.00 per statutory trust. All other statutory trust filing fees increased to $500. For more information, contact our Delaware office at 888.372.7273.

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Kentucky: Boots to Business

Beginning August 1, 2018, the Kentucky Secretary of State launched its “Boots to Business” program, which honors the service of its veterans by waiving certain fees for those starting new businesses. Any new business that is 51-percent owned by a military veteran or active service member is eligible to have the fees waived for the initial business filing and the first four annual report filings. If you are interested in learning more about the program, you can complete the contact form located on the KY SOS website.

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Louisiana: Misleading Mailers

Louisiana Secretary of State (LA SOS) Kyle Ardoin has issued a warning to businesses regarding misleading annual report mailers coming from an entity called Workplace Compliance Services. While the document may look official, the advisory states that this entity is not affiliated or associated with Louisiana state government in any way, and that the mailers should be discarded immediately. Scams like this are common and have been reported in many states over the years. If you receive anything in the mail that you are unsure about, feel free to reach out to our staff (at 800.533.7272) or the LA SOS Commercial Division (at 225.925.4707) regarding the validity of the document.

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New Hampshire: Name Availability Criteria

On August 7, 2018, a portion of Senate Bill 413 relative to reinstatement of a limited liability company went into effect. The remaining piece, which establishes criteria for determining whether a proposed business name is distinguishable from an existing business name for purposes of registration with the Secretary of State, will take effect January 1, 2019. Sections 1 through 10 of the bill details the criteria relative to name availability for various entity types. Read Senate Bill 413 by visiting this site.

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Wisconsin: Hurricane Florence Scams

In the wake of the damage caused by Hurricane Florence, the Wisconsin Department of Financial Institutions and the Department of Agriculture, Trade and Consumer Protection have issued a warning regarding charitable scams. Before making a generous charitable donation, research the charity by name and exercise caution when being approached by aggressive cold callers or high-pressure pitches. Two helpful sites for conducting research are Charity Navigator (www.charitynavigator.org) and Give (www.give.org). While it’s admirable to donate to those in need, you’ll want to be confident your donations are going to those who truly deserve it.

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Upcoming Events

Parasec Takes to the Streets

Below are some of the events where you can find us in the coming months.

  • October 25-27 – The 2018 Wisconsin Solo & Small Firm Conference; Wisconsin Dells, WI
  • November 6-9 – The 55th Annual National Association of Estate Planners & Councils (NAEPC) Advanced Estate Planning Strategies Conference; Ft. Lauderdale, FL
  • November 9 – The 2018 Maricopa County Bar Association (MCBA) Paralegal Conference; Phoenix, Arizona
We welcome any input you may have about what would make our newsletter more meaningful for you. Please email us your comments and/or suggestions! parasec@parasec.com.

[More On the Web]

Matthew Marzucco, CEO of Parasec, blogs here.

Marketing Manager Erin Sierchio tweets for Parasec here.

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A note from Matt

A NOTE FROM EDWARD
Regulatory & Government Affairs Manager

On January 1, 2016, Assembly Bill 557 went into effect, providing (among other things) the California Franchise Tax Board (FTB) with the authority to administratively dissolve or surrender specific types of nonprofit corporations that have been suspended or forfeited for 48 consecutive months. A notice is provided to the entity, and the corporation’s name and file number are also published on the Secretary of State website. The nonprofit corporation has 60 calendar days from the publication date to act—either by paying any monies owed, submitting an objection, or voluntarily dissolving—before the corporation administratively is dissolved/surrendered permanently. Once dissolved, there are no remedies to revive the entity.

While we previously provided information on AB 557 in an earlier edition of the Alert, pending legislation awaiting the Governor’s signature (Assembly Bill 2503) will expand similar provisions to domestic corporations and LLCs. Once signed, Assembly Bill 2503 will have an effective date of January 1, 2019, at which time the FTB will have the authority to suspend corporations and LLCs. Additionally, after 60 continuous months of suspension, the same notices referenced above would be provided to corporations and LLCs. Failure to act, would then result in them being permanently administratively dissolved.

To read Assembly Bill 2503 in its entirety, click here.