Today's Law As Amended


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AB-889 Business entities: landlords: reporting requirements.(2021-2022)



As Amends the Law Today


SECTION 1.

 Article 8.1 (commencing with Section 12285) is added to Chapter 3 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article  8.1. Reporting Requirements for Business Entity Landlords
12285.
 (a) A qualified entity shall report, upon registration or renewal of registration with the Secretary of State or submission of a statement of information to the Secretary of State, the identity of the beneficial owner of the qualified entity to the Secretary of State in the form and manner as required by the Secretary of State.
(b) For the purposes of this section, the following definitions apply:
(1) (A) Except as otherwise provided in subparagraph (B), “beneficial owner” means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, any of the following applies:
(i) The person exercises substantial control over a qualified entity.
(ii) The person owns 25 percent or more of the equity interest of a qualified entity.
(iii) The person receives substantial economic benefits from the assets of a qualified entity.
(B) “Beneficial owner” does not include any of the following:
(i) A minor child.
(ii) A person acting as a nominee, intermediary, custodian, or agent on behalf of another person.
(iii) A person acting solely as an employee of a qualified entity and whose control over or economic benefits from that qualified entity derives solely from the employment status of the person.
(iv) A person whose only interest in a qualified entity is through a right of inheritance.
(v) A creditor of a qualified entity, unless the creditor meets the requirements specified in subparagraph (A).
(2) “Qualified entity” means a corporation or limited liability company that owns real property that is offered for rent or lease.