Corporations Code section 2296
(a)
This chapter shall apply to applications submitted to the Secretary of State on or after January 1, 2013.(b)
On and after the effective date of the act adding this subdivision, the Secretary of State shall not accept any new applications from claimants for payment from the fund. Thereafter, the Secretary of State shall wind down the activities of the fund pursuant to this chapter. While any obligation of the Secretary of State incurred pursuant to this chapter remains outstanding and not fully performed or discharged, the rights, powers, and duties of the Secretary of State shall not be diminished or impaired in any manner that will adversely affect the interests and rights of existing claimants or other parties to those obligations.(c)
The Secretary of State, starting February 1, 2027, and annually thereafter until all outstanding claims have been paid, shall provide to the Joint Legislative Budget Committee and other appropriate committees of the Legislature an update on the fund balance, the number of outstanding claims and the amount owed, and the estimated time for paying off any outstanding claims. When all outstanding claims are paid off, the department shall submit a notice to the Joint Legislative Budget Committee and appropriate committees of the Legislature.(d)
Funding for purposes other than those described in this chapter after all outstanding claims are paid is contingent upon an appropriation of funds by the Legislature in the annual Budget Act.
Source:
Section 2296, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=2296. (updated Sep. 18, 2026; accessed Sep. 28, 2026).
