Professional fiduciaries.

Assembly Member Flora's legislation establishes a framework for professional fiduciaries to organize as professional corporations while expanding oversight of fiduciary services in California. The bill authorizes licensed fiduciaries to form professional corporations registered with the Secretary of State to provide fiduciary services, subject to compliance with the Moscone-Knox Professional Corporation Act and bureau regulations.

The legislation requires professional fiduciary corporations to maintain detailed records and submit comprehensive reports to the Professional Fiduciaries Bureau, including information about corporate structure, personnel, active cases, and assets under management. Corporations must designate licensed fiduciaries as primary contacts and cannot permit unqualified persons to serve as officers, directors, or shareholders. The bill prohibits corporations from charging clients for incorporation costs or name changes.

New provisions restrict court appointments of professional fiduciaries and their corporations. Courts cannot appoint or continue fiduciaries unless they hold current licenses or qualify for exemptions. Professional fiduciary corporations are specifically barred from appointments as guardians of persons, conservators of persons, or agents under powers of attorney. The bill also expands grounds for disciplinary action to include failure to respond to bureau inquiries or produce requested documents.

To balance transparency with privacy protection, the legislation designates certain corporate reports as confidential investigatory files, while making other information publicly available through the bureau. The bill adds requirements for annual statements filed by individual licensees, including details about corporate affiliations and any removals or resignations from fiduciary appointments.