BILL ANALYSIS Ó
AB 844
Page 1
ASSEMBLY THIRD READING
AB
844 (Bloom)
As Introduced February 26, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+----------------------+----------------------|
|Public Safety |7-0 |Quirk, Melendez, | |
| | |Gonzalez, | |
| | |Jones-Sawyer, Lackey, | |
| | |Low, Santiago | |
| | | | |
|----------------+------+----------------------+----------------------|
|Banking |12-0 |Dababneh, Travis | |
| | |Allen, Achadjian, | |
| | |Brown, Chau, Gatto, | |
| | |Hadley, Kim, Low, | |
| | |Perea, Ridley-Thomas, | |
| | |Mark Stone | |
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SUMMARY: Authorizes a foreign corporation and foreign limited
liability company to consent to service of process for a search
warrant by email or submission to a designated Internet Web
portal.
EXISTING LAW:
1)Requires, when properly served with a search warrant issued by
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the California court, a foreign corporation subject to this
section to provide to the applicant, all records sought pursuant
to that warrant within five business days of receipt, including
those records maintained or located outside this state.
2)Defines a "search warrant" as an order in writing in the name of
the People, signed by a magistrate, directed to a peace officer,
commanding him or her to search for a person or persons, a thing
or things, or personal property, and in the case of a thing or
things or personal property, bring the same before the
magistrate.
3)States that a California corporation that provides electronic
communication services or remote computing services to the
general public, when served with a warrant issued by another
state to produce records that would reveal the identity of the
customers using those services, data stored by, or on behalf of,
the customer, the customer's usage of those services, the
recipient or destination of communications sent to or from those
customers, or the content of those communications, shall produce
those records as if that warrant had been issued by a California
court.
4)Defines "properly served" as a search warrant has been delivered
by hand, or in a manner reasonably allowing for proof of
delivery if delivered by United States mail, overnight delivery
service, or facsimile to a person or entity listed.
5)States that a provider of wire or electronic communication
services or a remote computing service, upon the request of a
peace officer, shall take all necessary steps to preserve
records and other evidence in its possession pending the
issuance of a search warrant or a request in writing and an
affidavit declaring an intent to file a warrant to the provider.
Records shall be retained for a period of 90 days which shall
be extended for an additional 90-day upon a renewed request by
the peace officer.
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6)Requires any domestic or foreign corporation, before it may be
designated as the agent for the purpose of service of process of
any entity, to file a certificate executed in the name of the
corporation by an officer thereof stating all of the following:
a) The complete street address of its office or offices in
this state, wherein any entity designating it as such agent
may be served with process;
b) The name of each person employed by it at each such office
to whom it authorizes the delivery of a copy of any such
process; and
c) Its consent that delivery thereof to any such person at
the office where the person is employed shall constitute
delivery of any such copy to it, as such agent.
7)Provides that delivery by hand of a copy of any process against
the corporation: (a) to any natural person designated by it as
agent or (b), if a corporate agent has been designated, to any
person named in the latest certificate of the corporate agent
filed with the Secretary of State at the office of such
corporate agent shall constitute valid service on the
corporation.
8)Prohibits a foreign corporation from transacting intrastate
business without having first obtained from the Secretary of
State a certificate of qualification. To obtain that
certificate it shall file, on a form prescribed by the Secretary
of State, a statement and designation signed by a corporate
officer or, in the case of a foreign association that has no
officers, signed by a trustee stating:
a) Its name and the state or place of its incorporation or
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organization;
b) The street address of its principal executive office;
c) The street address of its principal office within this
state, if any;
d) The mailing address of its principal executive office, if
different from the addresses specified above;
e) The name of an agent upon whom process directed to the
corporation may be served within this state, as specified;
f) Its irrevocable consent to service of process directed to
it upon the agent designated and to service of process on the
Secretary of State if the agent so designated or the agent's
successor is no longer authorized to act or cannot be found
at the address given; and
g) If it is a corporation which will be subject to the
Insurance Code as an insurer, it shall so state that fact.
9)Specifies that consent extends to service of process directed to
the foreign corporation's agent in California for a search
warrant issued pursuant to Penal Code (PC) Section 1524.2, or
for any other validly issued and properly served search warrant,
for records or documents that are in the possession of the
foreign corporation and are located inside or outside of this
state. This subparagraph shall apply to a foreign corporation
that is a party or a nonparty to the matter for which the search
warrant is sought. For purposes of this subparagraph, "properly
served" means delivered by hand, or in a manner reasonably
allowing for proof of delivery if delivered by United States
mail, overnight delivery service, or facsimile to a person or
entity listed as specified.
10)Provides that a foreign limited liability company may apply for
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a certificate of registration to transact business in this state
by delivering an application to the Secretary of State for
filing on a form prescribed by the Secretary of State. The
application shall state all of the following:
a) The name of the foreign limited liability company, or an
alternate name, as specified;
b) The state or other jurisdiction under whose law the
foreign limited liability company is organized and the date
of its organization in that state or other jurisdiction, and
a statement that the foreign limited liability company is
authorized to exercise its powers and privileges in that
state or other jurisdiction;
c) The street address of the foreign limited liability
company's principal office and of its principal business
office in this state, if any;
d) The name and street address of the foreign limited
liability company's initial agent for service of process in
this state who meets the qualifications specified. If a
corporate agent is designated, only the name of the agent
shall be set forth;
e) A statement that the Secretary of State is appointed the
agent of the foreign limited liability company for service of
process if the agent has resigned and has not been replaced
or if the agent cannot be found or served with the exercise
of reasonable diligence; and
f) The mailing address of the foreign limited liability
company if different than the street address of the principal
office, or principal business office in this state.
(Corporations Code Section 17708.02(a))
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FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: According to the author, "AB 844 would amend the definition of
'properly served' in PC Section 1524.2(a)(6) to reflect the common
and increasingly prevalent practice of communications and
computing service companies to insist on electronic service of
process. Such policies may request that service be by email, or
via a web portal provided by the company."
Analysis Prepared by:
Stella Choe / PUB. S. / (916) 319-3744 FN:
0000277