(1)Existing law, the Professional Fiduciaries Act, establishes, until January 1, 2028, the Professional Fiduciaries Bureau, and requires the bureau to license and regulate professional fiduciaries. Existing law defines various terms for these purposes. Existing law requires the bureau to maintain specified information in each licensees file, and requires a licensee to annually file with the bureau a statement under penalty of perjury containing specified information, including among other things, any licenses or professional certificates held by the licensee.

This bill, beginning January 1, 2028, 2029, would authorize licensees to organize professional fiduciary professional corporations to provide professional fiduciary services, and would prescribe requirements and regulations for those professional corporations to provide fiduciary services. The bill would require the bureau to set the annual registration and annual renewal professional fiduciary professional corporations regulatory fee in the amount of at least $1,000 but not to exceed the reasonable costs of implementing these provisions.

This bill would require the information maintained by the bureau in each licensees file, and the annual statement filed by a licensee, to include additional information, including information related to whether the licensee is serving with or under a professional fiduciary corporation. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

Existing law authorizes the bureau to suspend, revoke, deny, or impose other disciplinary action on a professional fiduciary license for specified causes, including, among other things, violating specified laws, rules, or regulations pertaining to duties or functions of a professional fiduciary.

This bill would add to that list of causes the failure of a licensee to, in a timely manner, to respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation. corporation, within 60 days of when the request is made.

(2)Existing law, the Moscone-Knox Professional Corporation Act, defines and regulates professional corporations. Existing law provides that a professional organization renders professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by, among others, the Business and Professions Code pursuant to a certificate of registration issued by the governmental agency regulating the profession, as specified.

This bill would require a professional fiduciary professional corporation to register with the Secretary of State, as provided, and would require the corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services to be in compliance with the Moscone-Knox Professional Corporation Act. bureau to issue a certificate of registration to an applicant that meets the requirements of the Moscone-Knox Professional Corporation Act, the Professional Fiduciaries Act, and other applicable law.

(3)Existing law generally regulates probate, guardianship, conservatorship, and other protective proceedings. Existing law defines various terms for these purposes, including professional fiduciary.

This bill would additionally define professional fiduciary professional corporation for these purposes.

Existing law prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary unless that person holds a valid, unexpired, and unsuspended license as a professional fiduciary or is exempt from those licensing requirements, as specified.

This bill would repeal those provisions and would instead prohibit a superior court from appointing a professional fiduciary as, or permitting a professional fiduciary to continue as, a guardian, conservator, personal representative, or trustee, unless the professional fiduciary satisfies one of specified requirements. The bill would make conforming changes.

(4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law, the Professional Fiduciaries Act, establishes, until January 1, 2028, the Professional Fiduciaries Bureau, and requires the bureau to license and regulate professional fiduciaries. Existing law defines various terms for these purposes. Existing law requires the bureau to maintain specified information in each licensees file, and requires a licensee to annually file with the bureau a statement under penalty of perjury containing specified information, including among other things, any licenses or professional certificates held by the licensee.

This bill, beginning January 1, 2028, would authorize licensees to organize professional fiduciary professional corporations to provide professional fiduciary services, and would prescribe requirements and regulations for those professional corporations to provide fiduciary services. The bill would require the bureau to set the annual professional fiduciary professional corporations regulatory fee in the amount of at least $1,000 but not to exceed the reasonable costs of implementing these provisions.

This bill would require the information maintained by the bureau in each licensees file, and the annual statement filed by a licensee, to include additional information, including information related to whether the licensee is serving with or under a professional fiduciary corporation. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

Existing law authorizes the bureau to suspend, revoke, deny, or impose other disciplinary action on a professional fiduciary license for specified causes, including, among other things, violating specified laws, rules, or regulations pertaining to duties or functions of a professional fiduciary.

This bill would add to that list of causes the failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation.

(2)Existing law, the Moscone-Knox Professional Corporation Act, defines and regulates professional corporations. Existing law provides that a professional organization renders professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by, among others, the Business and Professions Code pursuant to a certificate of registration issued by the governmental agency regulating the profession, as specified.

This bill would require a professional fiduciary professional corporation to register with the Secretary of State, as provided, and would require the corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services to be in compliance with the Moscone-Knox Professional Corporation Act.

(3)Existing law generally regulates probate, guardianship, conservatorship, and other protective proceedings. Existing law defines various terms for these purposes, including professional fiduciary.

This bill would additionally define professional fiduciary professional corporation for these purposes.

Existing law prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary unless that person holds a valid, unexpired, and unsuspended license as a professional fiduciary or is exempt from those licensing requirements, as specified.

This bill would repeal those provisions and would instead prohibit a superior court from appointing a professional fiduciary as, or permitting a professional fiduciary to continue as, a guardian, conservator, personal representative, or trustee, unless the professional fiduciary satisfies one of specified requirements. The bill would make conforming changes.

(4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law, the Professional Fiduciaries Act, establishes, until January 1, 2028, the Professional Fiduciaries Bureau, and requires the bureau to license and regulate professional fiduciaries. Existing law defines various terms for these purposes. Existing law requires the bureau to maintain specified information in each licensees file, and requires a licensee to annually file with the bureau a statement under penalty of perjury containing specified information, including among other things, any licenses or professional certificates held by the licensee.

This bill, beginning January 1, 2028, would authorize licensees to organize professional fiduciary professional corporations to provide professional fiduciary services, and would prescribe requirements and regulations for those professional corporations to provide fiduciary services. The bill would require the bureau to set the professional fiduciary professional corporations regulatory fee in the amount of at least $1,000 but not to exceed the reasonable costs of implementing these provisions.

This bill would require the information maintained by the bureau in each licensees file, and the annual statement filed by a licensee, to include additional information, including information related to whether the licensee is serving with or under a professional fiduciary corporation. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

Existing law authorizes the bureau to suspend, revoke, deny, or impose other disciplinary action on a professional fiduciary license for specified causes, including, among other things, violating specified laws, rules, or regulations pertaining to duties or functions of a professional fiduciary.

This bill would add to that list of causes the failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation.

(2)Existing law, the Moscone-Knox Professional Corporation Act, defines and regulates professional corporations. Existing law provides that a professional organization renders professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by, among others, the Business and Professions Code pursuant to a certificate of registration issued by the governmental agency regulating the profession, as specified.

This bill would require a professional fiduciary professional corporation to register with the Secretary of State, as provided, and would require the corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services to be in compliance with the Moscone-Knox Professional Corporation Act.

(3)Existing law generally regulates probate, guardianship, conservatorship, and other protective proceedings. Existing law defines various terms for these purposes, including professional fiduciary.

This bill would additionally define professional fiduciary professional corporation for these purposes.

Existing law prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary unless that person holds a valid, unexpired, and unsuspended license as a professional fiduciary or is exempt from those licensing requirements, as specified.

This bill would repeal those provisions and would instead prohibit a superior court from appointing a professional fiduciary as, or permitting a professional fiduciary to continue as, a guardian, conservator, personal representative, or trustee, unless the professional fiduciary satisfies one of specified requirements. The bill would make conforming changes.

(4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

SENATE COMMITTEE ON

Senator Sabrina Cervantes, Chair

2025 - 2026 Regular Session

AB 1939 (Flora) - Professional fiduciaries: corporate practice

Bill Summary:

AB 1939 establishes a registration pathway for professional fiduciary corporations formed under the Moscone-Knox Professional Corporation Act, requiring licensees to notify the Professional Fiduciaries Bureau (PFB) of such service and submit specified annual reports. AB 1939 also clarifies which entities a superior court may appoint to fiduciary positions, while requiring licensees to resign from any unlawful appointments and forfeiting their right to payment for services rendered under them.

Fiscal Impact:

PFB reports:

• Absorbable one-time costs to promulgate regulations, implement a new fee for the organization of a professional fiduciary corporation, update various forms, and conduct outreach.
• Unabsorbable costs of $79,000 in Fiscal Year (FY) 2028-29, $256,000 in FY 2029-30, and $358,000 ongoing annually (Professional Fiduciary Fund) for additional administrative and enforcement workload, including reviewing new corporation-wide reports and conducting more complex investigations. PFB’s estimate assumes 260 total applicants and 30 to 40 complaints annually, with 50 percent of complaints referred to the Attorney General.
• An unknown increase in fee revenue, which may offset administrative and enforcement costs to some extent.

The Office of Information Services estimates IT costs of $73,000 to add a new license type and make other conforming system changes, which is expected to be absorbable.

Background:

Generally, fiduciaries are individuals who are granted another individual’s confidence and trust. Those who are paid to handle fiduciary duties for clients, such as conservators, guardians, trustees, personal representatives of a decedent’s estate, and agents under durable power of attorney, are considered professional fiduciaries and require a license issued by the Bureau.

Because a license is required to provide professional fiduciary services, and corporations and other business entities are not able to obtain a license under existing law, corporations and other business entities are prohibited from providing professional services unless specifically authorized.

Proposed Law:

• Expands the information PFB is required to maintain in each licensee’s file, makes available to a court for any purpose, and makes available to the public.
• Authorizes one or more licensees may organize a professional fiduciary professional corporation (corporation) to provide professional fiduciary services that require licensure, effective January 1, 2029.
• Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services, as defined in CORP § 13401, if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with the Moscone-Knox Professional Corporation Act. Requires the PFB is issue a certificate of registration to the applicant that meets all requirements for registration of the Moscone-Knox Professional Corporation Act and the Professional Fiduciaries Act. Requires each corporation to renew its registration on an annual basis.
• Requires a licensee to initially, and annually thereafter, to file with the Bureau, a statement under penalty of perjury whether or not a corporation, for which the licensee is appointed with or serving under, has been removed for cause. Requires the licensee to report removals and file an additional statement of issues and facts pertaining to the case. Requires the licensee to indicate on each case whether the licensee is serving with or under a corporation and include the name of the corporation.
• Provides that failure of a licensee to respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a corporation within 60 days of the request is cause for disciplinary action.
• Authorizes the PFB to set a fee for registration and annual renewal of corporations. Requires the fee to be a minimum of $1,000.
• Establishes requirements applicable to a corporation, including:
  • Registration with the Secretary of State (SOS).
  • The corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services must comply with the Moscone-Knox Professional Corporation Act.
  • Any individual providing professional fiduciary services on behalf of the corporation shall be a licensee actively licensed with the PFB.
  • A licensee serving as an officer, director, shareholder, or employee of the corporation is not exempt from individual discipline for violations of the Professional Fiduciaries Act, bureau regulations, or other applicable laws.
  • Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in CORP § 13401, does not accrue to the benefit of that shareholder or their shares in the corporation.
  • The corporation is prohibited from permitting an unqualified person to serve as an officer, director, shareholder, or licensed employee.
  • The licensee or licensees named on the SOS registration must serve as the PFB’s primary contact.
  • A corporation or its agent is prohibited from imposing costs or fees to a client for incorporation or corporation name changes with the SOS or on appointing documents or other records.
• Requires a registrant to provide specified information to PFB in the form of a corporation-wide report upon request and establishes that failure to do so within 60 days of the request is considered unprofessional conduct.
• Requires a corporation to take specified actions if appointed by a court under specified circumstances, including:
  • Immediately resign the appointment.
  • Notify the court or party that appointed the corporation of the resignation.
  • Cooperate with all efforts to have a successor appointed.
  • Waive compensation for any services related to the resignation and the appointment of a successor.
• Prohibits a registered fiduciary corporation from billing or imposing costs for services performed while improperly named by a court and states failure of a registrant to resign is considered unprofessional conduct.
• Defines “Professional fiduciary professional corporation” in the Probate Code.
• Prohibits a superior court from appointing a corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a corporation to continue in any of those offices, unless the professional fiduciary or the corporation: 1) holds a current, unsuspended license issued by the PFB; 2) is exempt from licensure; or 3) is a corporation registered with PFB, which is prohibited from being appointed as a guardian, conservator, or in a position to make health care decisions.
• Makes technical amendments throughout the Probate Code.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Thomas Umberg, Chair

2025-2026 Regular Session

Bill No: AB 1939 (Author:Flora)

Version: June 11, 2026

Hearing Date: June 30, 2026

Fiscal: Yes

Urgency: No

Consultant: AM

SUBJECT

Professional fiduciaries: corporate practice

DIGEST

This bill authorizes the formation of a professional fiduciary professional corporation, if certain conditions are met. The bill prohibits a superior court from appointing a professional fiduciary as a guardian, conservator, personal representative, or trustee unless the professional fiduciary is licensed as a professional fiduciary, a professional fiduciary professional corporation, or otherwise exempt from licensure as a professional fiduciary.

EXECUTIVE SUMMARY

A professional fiduciary may be appointed by a court as a guardian or conservator of a person or an estate, or both, or to probate a person’s estate. A fiduciary may also be appointed by an individual as the trustee of a trust or an agent under a power of attorney. A professional fiduciary has significant responsibility for managing the assets or person of another and as such is required to be licensed by the Professional Fiduciary Bureau. This bill seeks to address a purported gap in existing law by requiring a professional fiduciary corporation to be registered with the Professional Fiduciary Bureau and ensuring that a court cannot name a professional fiduciary as a guardian, conservator, personal representative, trustee, or other officer unless they are licensed or registered, except as specified. This bill is substantially similar to AB 2148 (Low, 2023), which passed this Committee on a vote of 11 to 0, and AB 586 (Flora, 2025), which passed this Committee on a vote of 13 to 0, but both bills were ultimately held in the Senate Appropriations Committee.

This bill is supported by the Professional Fiduciary Association of California. No timely opposition was received by this Committee. The bill passed the Senate Business, Professions and Economic Development Committee on a vote of 11 to 0.

PROPOSED CHANGES TO THE LAW

Existing law:

1. Provides for the licensure and regulation of professional fiduciaries by the Professional Fiduciaries Bureau (PFB) under the Professional Fiduciaries Act. (Bus. & Prof. Code §§ 6500 et. seq.)
2. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (Bus. & Prof. Code § 6530.)
3. Defines a “professional fiduciary” as the following:
   1. A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (Bus. & Prof. Code §6501(f)(1)(A).)
   2. A personal representative of a decedent’s estate, as defined in the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (Bus. & Prof. Code §6501(f)(1)(B); Prob. Code § 58(a).)
   3. A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (Bus. & Prof. Code § 6501(f)(2).)
4. Requires the PFB to maintain certain information in each licensee’s file, including the names of the licensee’s current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of the trusts or estates currently administered by the licensee, whether the case is court supervised or noncourt supervised. (Bus. & Prof. Code §6534(a).)
   1. Makes some of the information held by the PFB in a licensee’s file confidential.
5. Requires a professional fiduciary to file a statement with the PFB under penalty of perjury containing specified information, including whether the licensee has been found by a court to have breached a fiduciary duty or whether the licensee has been convicted of a crime. (Bus. & Prof. Code § 6561.)
6. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corp. Code §§ 13400 et. seq.)
   1. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. (Corp. Code § 13401(a).)
   2. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (Corp. Code § 13401(b).)
7. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permit a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of the Professional Fiduciaries Act. (Prob. Code § 2340.)
8. Provides, pursuant to the California Constitution, that the people have the right of access to information concerning the conduct of the people’s business, and, therefore, the meetings of public bodies and the writings of public officials and agencies are required to be open to public scrutiny. (Cal. const. art. I, § 3(b)(1).)
   1. Requires a statute to be broadly construed if it furthers the people’s right of access, and narrowly construed if it limits the right of access. (Cal. const. art. I, § 3(b)(1).)
   2. Requires a statute that limits the public’s right of access to be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. (Cal. const. art. I, § 3(b)(1).)
9. Governs the disclosure of information collected and maintained by public agencies pursuant to the CPRA. (Gov. Code §§ 7920.000 et seq.)
   1. States that the Legislature, mindful of the individual right to privacy, finds and declares that access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state. (Gov. Code § 7921.000.)
   2. Defines “public records” as any writing containing information relating to the conduct of the public’s business prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. (Gov. Code § 7920.530.)
   3. Provides that all public records are accessible to the public upon request, unless the record requested is exempt from public disclosure. (Gov. Code § 7922.530.)

This bill:

1. Authorizes licensed professional fiduciaries to organize professional fiduciary corporations to provide professional fiduciary services under the Moscone-Knox Professional Corporation Act, as provided.  
   1. Authorizes the PFB to promulgate regulations for professional fiduciary professional corporations in accordance with the provisions of the Administrative Procedure Act.
2. Requires a licensed professional fiduciary to indicate to PFB, under penalty of perjury, on each case if the licensee is serving under a professional fiduciary corporation.
   
3. Updates the definition of professional fiduciary in the Probate Code to also include a professional fiduciary professional corporation organized under the Moscone-Knox Professional Corporation Act.
4. Prohibits a superior court from appointing a professional fiduciary or professional fiduciary corporation as a guardian, conservator, personal representative, or trustee, or allowing a professional fiduciary or professional fiduciary corporation to continue in any of those offices, unless the professional fiduciary or professional fiduciary corporation satisfies any of the following:
5. holds a current, unsuspended license as a professional fiduciary to act or hold themselves out to the public as a professional fiduciary;
6. is exempt from the licensing requirements for professional fiduciaries; or
7. is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act.
8. Prohibits a professional fiduciary professional corporation from being appointed as any of the following:
   1. a guardian of the person of a ward under Part 2 (commencing with Section 1500) of Division 4 of the Probate Code;
   2. a conservator of the person of a conservatee under Part 3 (commencing with Section 1800) of Division 4 of the Probate Code; or
   3. any office under Division 4.7 (commencing with Section 4600) of the Probate Code.
9. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary under the Professional Fiduciaries Act.
10. Makes other technical and conforming changes.

COMMENTS

1. Stated need for the bill

The author writes:

AB 1939 protects consumers first, by requiring the members of a professional fiduciary professional corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.

1. Background on professional fiduciaries

A professional fiduciary is defined as any person who acts as a guardian, conservator, or personal representative for two or more individuals at the same time who are not related to the professional fiduciary or each other, a trustee, an agent under a durable power of attorney for health care, or an agent under a durable power of attorney for finances for more than three individuals, at the same time. (Bus. & Prof. Code § 6501 (f).) A professional fiduciary is required to be licensed and regulated by the PFB. Often, a professional fiduciary steps in to act when family members are unable or unwilling to serve, or when there is a dispute among the family members. Professional fiduciaries must make a broad range of complex decisions for wards and conservatees, including where they live, home care arrangements, major medical decisions, and control of all of the financial matters from bank accounts to investment and tax decisions. A personal representative is generally appointed in connection with the administration of estates, a trustee in connection with administration of a trust, and an agent under a durable power of attorney to handle financial matters. These positions place responsibility on a person for making decisions relating to the management and disposition of assets, management of accounts, and the distribution to heirs or beneficiaries. Agents for health care of financial matters may be called upon to make critical medical decisions on behalf of the principal.

1. This bill seeks to regulate professional fiduciary corporations

This bill seeks to address a gap in existing law by authorizing professional fiduciaries to organize as a “professional corporation” pursuant to the provisions of the Moscone-Knox Professional Corporation Act. All directors, shareholders, and officers must be licensed by the PFB and any income of the professional corporation attributable to professional fiduciary services rendered while a shareholder is a disqualified person cannot accrue to the benefit of that shareholder or their shares in the corporation. The bill requires a professional fiduciary to submit to the PFB each case where they are serving under a professional fiduciary corporation and other specified information, such as assets under the licensee’s supervision. This information would be deemed confidential and therefore not subject to disclosure under the California Public Records Act.

California generally recognizes that public access to information concerning the conduct of the people’s business is a fundamental and necessary right.^[1] At the same time, the state recognizes that this right must be balanced against the right to privacy.^[2] The general right of access to public records may, therefore, be limited when records include personal information. The bill states that this limitation is necessary to protect the privacy rights of individual clients. In light of the privacy implications, the stated need for the limitation on access to public records seems warranted.

The bill amends the Probate Code to prohibit a court from appointing a professional fiduciary as a guardian, conservator, public representative, or trustee unless they are: a licensed professional fiduciary, otherwise exempt from the licensing requirements of the Professional Fiduciaries Act; or are a professional fiduciary professional corporation organized under the Moscone-Knox Professional Corporation Act. The bill defines a professional fiduciary, for purposes of the Probate Code, as a person who holds a current, unsuspended license under the Professional Fiduciaries Act, is exempt from the licensing requirements of that act, or is a professional fiduciary professional corporation organized under the Moscone-Knox Professional Corporation Act. When making an appointment of a professional fiduciary corporation, the petition and appointment must specify the corporate member having primary responsibility for the matter.

1. Statements in support

The Professional Fiduciary Association of California writes in support stating:

The measure allows licensed professional fiduciaries to form professional corporations provided those corporations are in compliance with the Moscone Knox Professional Corporations Act which, among other conditions, requires corporate officers, directors and shareholders to be licensed professionals.

AB 1939 authorizes the court to appoint a professional fiduciary professional corporation to serve in specific capacities including guardian of the estate, conservator of the estate, personal representative of a decedent’s estate and trustee of a trust. Not included in the list of capacities in which a court may appoint a professional corporation is guardian of the person or conservator of the person.

As a protection to consumers, and in addition to services provided by these professional corporations being subject to court scrutiny, as a further consumer protection these professional corporations will be subject to the oversight, protection and disciplinary procedures provided by the Department of Consumer Affairs.

SUPPORT

Professional Fiduciary Association of California

OPPOSITION

None received

RELATED LEGISLATION

Pending Legislation: None known.

Prior Legislation:

AB 586 (Flora, 2025) was substantially similar to this bill. AB 586 was held in the Senate Appropriations Committee.

AB 2148 (Low, 2023) was substantially similar to this bill. AB 2148 was held in the Senate Appropriations Committee.

PRIOR VOTES

Senate Business, Professions and Economic Development Committee (Ayes 11, Noes 0)

Assembly Floor (Ayes 76, Noes 0)

Assembly Appropriations Committee (Ayes 15, Noes 0)

Assembly Judiciary Committee (Ayes 12, Noes 0)

Assembly Business and Professions Committee (Ayes 19, Noes 0)

**************

1. Cal. Const., art. I, § 3; Gov. Code, § 7921.000. ↑

2. Cal. Const., art. I, § 1. ↑

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Dr. Aisha Wahab, Chair

2025 - 2026 Regular

Bill No: Hearing Date: June 15, 2026

Subject:

SUMMARY:

Establishes a registration for professional fiduciary professional corporation, effective January 1, 2029. Authorizes licensed professional fiduciaries to form professional corporations in compliance with the Moscone-Knox Corporation Act. Requires licensees to notify the Professional Fiduciaries Bureau (Bureau) if serving under a professional fiduciary corporation and submit an annual report, as specified. Clarifies who a superior court may appoint to specified fiduciary positions, requires fiduciary licensees to resign an appointment made in violation of existing law, and prohibits a licensee from accepting payment for services rendered under that appointment.

NOTE:

This bill is double-referred to the Senate Committee on Judiciary, second.

Existing law:

1. Regulates and licenses professional fiduciaries under the Professional Fiduciaries Act (Act). (Business and Professions Code (BPC) §§ 6500-6592)
2. Establishes the Bureau within the Department of Consumer Affairs (DCA) to administer and enforce the Act. (BPC § 6510)
3. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (BPC § 6530)
4. Defines a “professional fiduciary” as the following:

a) A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(A))

b) A personal representative of a decedent’s estate, as defined in the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(B), Probate Code (PROB) § 58(a))

c) A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (BPC § 6501(f)(2))

1. Requires the Bureau to maintain specified information in each licensee's file, make the information available to a court for any purpose and keep the information confidential, with exceptions. (BPC § 6534)
   
2. Requires a licensee to annually file, under penalty of perjury, a statement that includes:

The licensee’s business address, telephone number, and facsimile number.

Whether or not the licensee has been removed for cause as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from appointment as a professional fiduciary practice administrator.

The names of the licensee’s current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of trusts and decedent’s estates currently administered by the licensee, whether the cases are court supervised or non-court supervised, and including court names, court locations, and case numbers where applicable.

The case names, court locations, and case numbers of all conservatorship, guardianship, trust and other estate administration cases that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, and personal representative of a decedent’s estate, whether the case is court supervised or non-court supervised.

Whether the licensee has been found by a court to have breached a fiduciary duty.

Whether the licensee has resigned or settled a matter in which a complaint against the licensee has been filed with the court, along with the case number and a statement of the issues and facts pertaining to the allegations.

Any licenses or professional certificates held by the licensee.

Any ownership or beneficial interests in businesses or other enterprises held by the licensee or by a family member that receives or has received payments from a client of the licensee.

Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last ten years.

The name of any persons or entities that have an interest in the licensee’s professional fiduciary business.

Whether the licensee has been convicted of a crime.

1. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corporations Code (CORP) §§ 13400-13410)
2. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the BPC, the Chiropractic Act, or the Osteopathic Act. (CORP § 13401(a))
3. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (CORP § 13401(b))
4. Defines “professional fiduciary as a person who is licensed by the Bureau as a fiduciary and prohibits an unlicensed person from holding themselves out to be a licensed fiduciary. (PROB § 60.1)
   
5. Establishes requirements pertaining to nomination and appointment non-relative legal guardianships. (PROB §§ 1500 et seq.)
   
6. Establishes requirement pertaining to appointment of conservators for a person who is unable to provide properly for his or her personal needs for physical health, food, clothing, or shelter, except as specified. (PROB §§180, et seq.)
   
7. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permit a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of the Act. (PROB § 2340)
   
8. Establishes the Health Care Decisions Law to regulate how decisions made by a patient or the patient’s agent, conservator, or surrogate applies to health care decisions for adults who lack capacity to make health care decisions for themselves. (PROB § 4600 et seq.)

This bill:

1. Expands the information PFB is required to maintain in each licensee’s file, makes available to a court for any purpose, and makes available to the public.
   
2. Authorizes one or more licensees may organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure, effective January 1, 2029.
   
3. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services, as defined in CORP § 13401, if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with the Moscone-Knox Professional Corporation Act. Requires the PFB is issue a certificate of registration to the applicant that meets all requirements for registration of the Moscone-Knox Professional Corporation Act and the Professional Fiduciaries Act. Requires each professional fiduciary professional corporation to renew its registration on an annual basis.
4. Requires a licensee to initially, and annually thereafter, to file with the Bureau, a statement under penalty of perjury whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. Requires the licensee to report removals and file an additional statement of issues and facts pertaining to the case. Requires the licensee to indicate on each case whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
   
5. Provides that failure of a licensee to respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation within 60 days of the request is cause for disciplinary action.
   
6. Authorizes the PFB to set a fee for registration and annual renewal of professional fiduciary professional corporations. Requires the fee to be a minimum of $1,000.
   
7. Establishes requirements applicable to a professional fiduciary professional corporation (corporation), including:

a) Registration with the Secretary of State (SOS).

b) The corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services must comply with the Moscone-Knox Professional Corporation Act.

c) Any individual providing professional fiduciary services on behalf of the corporation shall be a licensee actively licensed with the PFB.

d) A licensee serving as an officer, director, shareholder, or employee of the corporation is not exempt from individual discipline for violations of the Professional Fiduciaries Act, bureau regulations, or other applicable laws.

e) Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in CORP § 13401, does not accrue to the benefit of that shareholder or their shares in the corporation.

f) The corporation is prohibited from permitting an unqualified person to serve as an officer, director, shareholder, or licensed employee.

g) The licensee or licensees named on the SOS registration must serve as the PFB’s primary contact.

i) A corporation or its agent is prohibited from imposing costs or fees to a client for incorporation or corporation name changes with the SOS or on appointing documents or other records.

1. Requires a registrant to provide specified information to PFB in the form of a corporation-wide report upon request and establishes that failure to do so within 60 days of the request is considered unprofessional conduct.
2. Requires a professional fiduciary professional corporation to take specified actions if appointed in a matter in violation of 12) below, including:
   1. Immediately resign the appointment.
      
   2. Notify the court or party that appointed the professional fiduciary professional corporation of the resignation.
      
   3. Cooperate with all efforts to have a successor appointed.
      
   4. Waive compensation for any services related to the resignation and the appointment of a successor.
3. Prohibits a registered fiduciary corporation from billing or imposing costs for services performed while improperly named in violation of 12) below and states failure of a registrant to resign is considered unprofessional conduct.
4. Defines “Professional fiduciary professional corporation” in the Probate Code.
5. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation (corporation) as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the corporation: 1) holds a current, unsuspended license issued by the PFB; 2) is exempt from licensure; or 3) is a corporation registered with PFB, which is prohibited from being appointed as a guardian, conservator, or in a position to make health care decisions.
   
6. Makes technical amendments throughout the Probate Code.

FISCAL EFFECT:

This bill is keyed as fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations, the Bureau estimates ongoing costs of $79,000 in fiscal year (FY) 2028-29, $256,000 in FY 2029-30, and $358,000 in FY 2030-31 and ongoing for 1.5 additional staff positions to implement the program and investigate violation complaints, including referrals to the Attorney General’s Office. This estimate assumes at least 100 applicants in years one and two and 15 in each of the next four years and between 30 to 40 complaints against licensed corporations beginning in year three and ongoing. The Bureau assumes approximately 50% of complaints may be referred to the AG’s Office. The 2025 budget act provides approximately $1.12 million and 4.5 positions to support the continued operation of the Bureau’s licensing and enforcement activities. Boards and bureaus within DCA are “special funded,” meaning they derive their funding from fees charged to licensees. The Bureau notes the $1,000 fee required in the bill to implement and regulate professional fiduciary corporations appears to be a one-time registration fee (as there is no license renewal or ongoing fee language in the bill) and may be insufficient to support ongoing program costs. The Bureau must establish a fee via regulations prior to implementation, a process that will take approximately 12 to 24 months to complete and up to 15% of staff time. Additionally, the Bureau must update various existing forms and provide outreach on the new registrants. The Bureau indicates this workload is absorbable within existing resources. The Office of Information Services (OIS) within DCA reports one-time IT costs of approximately $50,000 to add a new registration type and to allow Bureau licensees to be associated with the corporate registrations. OIS presumes this will be a one-time payment and the registration type will have low complexity. OIS indicates delayed implementation is required to get the IT work completed after regulations are finished. The office indicates these costs are absorbable through the redirection of existing resources.

COMMENTS:

1. Purpose. This bill is sponsored by the Professional Fiduciary Association of California. The Author states, “AB 1939 protects consumers first, by requiring the members of a professional fiduciary professional corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.”
2. Background. Generally, fiduciaries are individuals who are granted another individual’s confidence and trust. Those who are paid to handle fiduciary duties for clients, such as conservators, guardians, trustees, personal representatives of a decedent’s estate, and agents under durable power of attorney, are considered professional fiduciaries and require a license issued by the Bureau. As of June 30, 2025, there were 891 active fiduciary licensees.
   

Because a license is required to provide professional fiduciary services, and corporations and other business entities are not able to obtain a license under existing law, corporations and other business entities are prohibited from providing professional services unless specifically authorized.

According to the sponsor, there are situations in which unlicensed corporate entities can be designated as professional fiduciaries. For example, the Probate Code is silent as to who may be named as successor trustee in the context of a trust, where the trustee’s appointment is determined by the testator’s stated wishes as opposed to a court appointment. Therefore, there is no restriction on the entity the testator may name as a trustee, regardless of the license status of the members of that entity. In other cases, the court may appoint a fiduciary who is not eligible for appointment, but because the Bureau does not have jurisdiction over courts, these appointments cannot be addressed to bring licensees in compliance with the Act.

This bill attempts to address the gap in law by authorizing the formation of professional fiduciary corporations under the Moscone-Knox Professional Corporation Act, specifically prohibiting corporations and other business entities from acting as professional fiduciaries unless registered with the PFB.

Consumer protection provisions added by this bill. A recent online article accused the PFB of failing to protect consumers who were victims of a fiduciary who was eventually arrested for stealing $2.5 million of her clients’ funds. However, the article did not report that after enforcement action was taken by the Bureau, courts appointed the subject fiduciary multiple times, which enabled her to continue taking advantage of clients. This is a practice that compromises PFB’s ability to meet its consumer protection mandate because courts and judges do not fall within the PFB’s jurisdiction. When a judge appoints a fiduciary who has had their license disciplined by the PFB or their license is not current, the Bureau is unable to act under current law.

This bill would require licensed fiduciaries to take specific steps when they are appointed by a court in a manner that is inconsistent with existing law, including immediately resigning from the appointment, notifying the court of the or party who made the appointment, cooperate with efforts to have a successor appointed, and waive compensation for any services. Additionally, this bill would prohibit fiduciary corporations from accepting appointments to act as a guardian, conservator, or act in the capacity of making health care decisions of an individual.

By placing the responsibility for compliance on the fiduciary licensee rather than relying solely on the judges or the courts, this bill would bring compliance with appointment requirements under the Bureau’s jurisdiction and allow the Bureau to play a greater role in protecting consumers from negligent or fraudulent fiduciaries who are appointed to represent them.

Previous attempts to address this issue. AB 2148 (Low of 2024) was introduced to address this gap in statute by proposing a corporation license to be issued by the Bureau. That bill was held under submission in the Senate Committee on Appropriations due to the cost of implementing a new license.

AB 586 (Flora of 2025) would have instead brought fiduciary corporations into the Bureau’s enforcement jurisdiction without the cost of creating a new license by requiring all shareholders, officers, directors, and employees rendering professional services to be licensed as a fiduciary and to submit a report upon Bureau request to establish who is working as a fiduciary on behalf of the corporation. AB 586 was also held in Appropriations due to unabsorbable workload as a result of processing reports, increased complaint volume and complexity, promulgating regulations, and required IT changes.

The Bureau is one of the smallest licensing entities within DCA at three authorized staff positions. Consequently, any new workload created by legislation has a high likelihood of not being absorbable with existing resources. Unlike the predecessor bills, this bill authorizes the Bureau to charge a fee to the fiduciary corporations, which would offset the new workload by allowing the Bureau to obtain personnel resources needed to implement and carry out the provisions of this legislation.

June Amendments. Among the substantive recent amendments, the bill now adds a delayed implementation date that would allow DCA’s Office of Information Services to create a new registration type in PFB’s licensing system, as well as time to promulgate regulations to adopt fees that would stand up the registration program for fiduciary corporations. Additionally, the fees are amended to reflect initial and renewal fees that are required to support a special fund program such as PFB. All other amendments are technical and clarifying.

1. Related Legislation. AB 586 (Flora of 2025) would have authorized licensed professional fiduciaries to form professional corporations in compliance with the Moscone-Knox Corporation Act; required licensees to notify the PFB if serving under a professional fiduciary corporation and submit an annual report, as specified; clarified who a superior court may appoint to specified fiduciary positions; required fiduciary licensees to resign an appointment made in violation of existing law; and prohibited a licensee from accepting payment for services rendered under that appointment. (Status: This bill was held under submission in the Senate Committee on Appropriations.)

AB 2148 (Low of 2024) would have established a professional fiduciary corporate registration administered by the Bureau and made it a violation for a corporation to render professional fiduciary services without being registered. (Status: This bill was held under submission in the Senate Committee on Appropriations.)

1. Arguments in Support. The Professional Fiduciary Association of California writes, “AB 1939 authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, trustee of a trust. The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney. The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.”

SUPPORT AND OPPOSITION:

Support:

Professional Fiduciary Association of California

Opposition:

None received

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Dr. Aisha Wahab, Chair

2025 - 2026 Regular

Bill No: Hearing Date: June 15, 2026

Subject:

SUMMARY:

Establishes a registration for professional fiduciary professional corporation, effective January 1, 2029. Authorizes licensed professional fiduciaries to form professional corporations in compliance with the Moscone-Knox Corporation Act. Requires licensees to notify the Professional Fiduciaries Bureau (Bureau) if serving under a professional fiduciary corporation and submit an annual report, as specified. Clarifies who a superior court may appoint to specified fiduciary positions, requires fiduciary licensees to resign an appointment made in violation of existing law, and prohibits a licensee from accepting payment for services rendered under that appointment.

NOTE:

This bill is double-referred to the Senate Committee on Judiciary, second.

Existing law:

1. Regulates and licenses professional fiduciaries under the Professional Fiduciaries Act (Act). (Business and Professions Code (BPC) §§ 6500-6592)
2. Establishes the Bureau within the Department of Consumer Affairs (DCA) to administer and enforce the Act. (BPC § 6510)
3. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (BPC § 6530)
4. Defines a “professional fiduciary” as the following:

a) A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(A))

b) A personal representative of a decedent’s estate, as defined in the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(B), Probate Code (PROB) § 58(a))

c) A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (BPC § 6501(f)(2))

1. Requires the Bureau to maintain specified information in each licensee's file, make the information available to a court for any purpose and keep the information confidential, with exceptions. (BPC § 6534)
   
2. Requires a licensee to annually file, under penalty of perjury, a statement that includes:

The licensee’s business address, telephone number, and facsimile number.

Whether or not the licensee has been removed for cause as a conservator, guardian, trustee, personal representative of a decedent’s estate, agent under a durable power of attorney for health care, agent under a durable power of attorney for finances, or a position arising from appointment as a professional fiduciary practice administrator.

The names of the licensee’s current conservatees, wards, principals under a durable power of attorney for health care, or principals under a durable power of attorney for finances, and the names of trusts and decedent’s estates currently administered by the licensee, whether the cases are court supervised or non-court supervised, and including court names, court locations, and case numbers where applicable.

The case names, court locations, and case numbers of all conservatorship, guardianship, trust and other estate administration cases that are closed for which the licensee served as the conservator, guardian, trustee, agent under a durable power of attorney for finance or health care, and personal representative of a decedent’s estate, whether the case is court supervised or non-court supervised.

Whether the licensee has been found by a court to have breached a fiduciary duty.

Whether the licensee has resigned or settled a matter in which a complaint against the licensee has been filed with the court, along with the case number and a statement of the issues and facts pertaining to the allegations.

Any licenses or professional certificates held by the licensee.

Any ownership or beneficial interests in businesses or other enterprises held by the licensee or by a family member that receives or has received payments from a client of the licensee.

Whether the licensee has filed for bankruptcy or held a controlling financial interest in a business that filed for bankruptcy in the last ten years.

The name of any persons or entities that have an interest in the licensee’s professional fiduciary business.

Whether the licensee has been convicted of a crime.

1. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corporations Code (CORP) §§ 13400-13410)
2. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the BPC, the Chiropractic Act, or the Osteopathic Act. (CORP § 13401(a))
3. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (CORP § 13401(b))
4. Defines “professional fiduciary as a person who is licensed by the Bureau as a fiduciary and prohibits an unlicensed person from holding themselves out to be a licensed fiduciary. (PROB § 60.1)
   
5. Establishes requirements pertaining to nomination and appointment non-relative legal guardianships. (PROB §§ 1500 et seq.)
   
6. Establishes requirement pertaining to appointment of conservators for a person who is unable to provide properly for his or her personal needs for physical health, food, clothing, or shelter, except as specified. (PROB §§180, et seq.)
   
7. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permit a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of the Act. (PROB § 2340)
   
8. Establishes the Health Care Decisions Law to regulate how decisions made by a patient or the patient’s agent, conservator, or surrogate applies to health care decisions for adults who lack capacity to make health care decisions for themselves. (PROB § 4600 et seq.)

This bill:

1. Expands the information PFB is required to maintain in each licensee’s file, makes available to a court for any purpose, and makes available to the public.
   
2. Authorizes one or more licensees may organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure, effective January 1, 2029.
   
3. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services, as defined in CORP § 13401, if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with the Moscone-Knox Professional Corporation Act. Requires the PFB is issue a certificate of registration to the applicant that meets all requirements for registration of the Moscone-Knox Professional Corporation Act and the Professional Fiduciaries Act. Requires each professional fiduciary professional corporation to renew its registration on an annual basis.
4. Requires a licensee to initially, and annually thereafter, to file with the Bureau, a statement under penalty of perjury whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. Requires the licensee to report removals and file an additional statement of issues and facts pertaining to the case. Requires the licensee to indicate on each case whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
   
5. Provides that failure of a licensee to respond to inquiries or produce documents requested by the bureau, including inquiries and documents related to a professional fiduciary professional corporation within 60 days of the request is cause for disciplinary action.
   
6. Authorizes the PFB to set a fee for registration and annual renewal of professional fiduciary professional corporations. Requires the fee to be a minimum of $1,000.
   
7. Establishes requirements applicable to a professional fiduciary professional corporation (corporation), including:

a) Registration with the Secretary of State (SOS).

b) The corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services must comply with the Moscone-Knox Professional Corporation Act.

c) Any individual providing professional fiduciary services on behalf of the corporation shall be a licensee actively licensed with the PFB.

d) A licensee serving as an officer, director, shareholder, or employee of the corporation is not exempt from individual discipline for violations of the Professional Fiduciaries Act, bureau regulations, or other applicable laws.

e) Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in CORP § 13401, does not accrue to the benefit of that shareholder or their shares in the corporation.

f) The corporation is prohibited from permitting an unqualified person to serve as an officer, director, shareholder, or licensed employee.

g) The licensee or licensees named on the SOS registration must serve as the PFB’s primary contact.

i) A corporation or its agent is prohibited from imposing costs or fees to a client for incorporation or corporation name changes with the SOS or on appointing documents or other records.

1. Requires a registrant to provide specified information to PFB in the form of a corporation-wide report upon request and establishes that failure to do so within 60 days of the request is considered unprofessional conduct.
2. Requires a professional fiduciary professional corporation to take specified actions if appointed in a matter in violation of 12) below, including:
   1. Immediately resign the appointment.
      
   2. Notify the court or party that appointed the professional fiduciary professional corporation of the resignation.
      
   3. Cooperate with all efforts to have a successor appointed.
      
   4. Waive compensation for any services related to the resignation and the appointment of a successor.
3. Prohibits a registered fiduciary corporation from billing or imposing costs for services performed while improperly named in violation of 12) below and states failure of a registrant to resign is considered unprofessional conduct.
4. Defines “Professional fiduciary professional corporation” in the Probate Code.
5. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation (corporation) as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the corporation: 1) holds a current, unsuspended license issued by the PFB; 2) is exempt from licensure; or 3) is a corporation registered with PFB, which is prohibited from being appointed as a guardian, conservator, or in a position to make health care decisions.
   
6. Makes technical amendments throughout the Probate Code.

FISCAL EFFECT:

This bill is keyed as fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations, the Bureau estimates ongoing costs of $79,000 in fiscal year (FY) 2028-29, $256,000 in FY 2029-30, and $358,000 in FY 2030-31 and ongoing for 1.5 additional staff positions to implement the program and investigate violation complaints, including referrals to the Attorney General’s Office. This estimate assumes at least 100 applicants in years one and two and 15 in each of the next four years and between 30 to 40 complaints against licensed corporations beginning in year three and ongoing. The Bureau assumes approximately 50% of complaints may be referred to the AG’s Office. The 2025 budget act provides approximately $1.12 million and 4.5 positions to support the continued operation of the Bureau’s licensing and enforcement activities. Boards and bureaus within DCA are “special funded,” meaning they derive their funding from fees charged to licensees. The Bureau notes the $1,000 fee required in the bill to implement and regulate professional fiduciary corporations appears to be a one-time registration fee (as there is no license renewal or ongoing fee language in the bill) and may be insufficient to support ongoing program costs. The Bureau must establish a fee via regulations prior to implementation, a process that will take approximately 12 to 24 months to complete and up to 15% of staff time. Additionally, the Bureau must update various existing forms and provide outreach on the new registrants. The Bureau indicates this workload is absorbable within existing resources. The Office of Information Services (OIS) within DCA reports one-time IT costs of approximately $50,000 to add a new registration type and to allow Bureau licensees to be associated with the corporate registrations. OIS presumes this will be a one-time payment and the registration type will have low complexity. OIS indicates delayed implementation is required to get the IT work completed after regulations are finished. The office indicates these costs are absorbable through the redirection of existing resources.

COMMENTS:

1. Purpose. This bill is sponsored by the Professional Fiduciary Association of California. The Author states, “AB 1939 protects consumers first, by requiring the members of a professional fiduciary professional corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.”
2. Background. Generally, fiduciaries are individuals who are granted another individual’s confidence and trust. Those who are paid to handle fiduciary duties for clients, such as conservators, guardians, trustees, personal representatives of a decedent’s estate, and agents under durable power of attorney, are considered professional fiduciaries and require a license issued by the Bureau. As of June 30, 2025, there were 891 active fiduciary licensees.
   

Because a license is required to provide professional fiduciary services, and corporations and other business entities are not able to obtain a license under existing law, corporations and other business entities are prohibited from providing professional services unless specifically authorized.

According to the sponsor, there are situations in which unlicensed corporate entities can be designated as professional fiduciaries. For example, the Probate Code is silent as to who may be named as successor trustee in the context of a trust, where the trustee’s appointment is determined by the testator’s stated wishes as opposed to a court appointment. Therefore, there is no restriction on the entity the testator may name as a trustee, regardless of the license status of the members of that entity. In other cases, the court may appoint a fiduciary who is not eligible for appointment, but because the Bureau does not have jurisdiction over courts, these appointments cannot be addressed to bring licensees in compliance with the Act.

This bill attempts to address the gap in law by authorizing the formation of professional fiduciary corporations under the Moscone-Knox Professional Corporation Act, specifically prohibiting corporations and other business entities from acting as professional fiduciaries unless registered with the PFB.

Consumer protection provisions added by this bill. A recent online article accused the PFB of failing to protect consumers who were victims of a fiduciary who was eventually arrested for stealing $2.5 million of her clients’ funds. However, the article did not report that after enforcement action was taken by the Bureau, courts appointed the subject fiduciary multiple times, which enabled her to continue taking advantage of clients. This is a practice that compromises PFB’s ability to meet its consumer protection mandate because courts and judges do not fall within the PFB’s jurisdiction. When a judge appoints a fiduciary who has had their license disciplined by the PFB or their license is not current, the Bureau is unable to act under current law.

This bill would require licensed fiduciaries to take specific steps when they are appointed by a court in a manner that is inconsistent with existing law, including immediately resigning from the appointment, notifying the court of the or party who made the appointment, cooperate with efforts to have a successor appointed, and waive compensation for any services. Additionally, this bill would prohibit fiduciary corporations from accepting appointments to act as a guardian, conservator, or act in the capacity of making health care decisions of an individual.

By placing the responsibility for compliance on the fiduciary licensee rather than relying solely on the judges or the courts, this bill would bring compliance with appointment requirements under the Bureau’s jurisdiction and allow the Bureau to play a greater role in protecting consumers from negligent or fraudulent fiduciaries who are appointed to represent them.

Previous attempts to address this issue. AB 2148 (Low of 2024) was introduced to address this gap in statute by proposing a corporation license to be issued by the Bureau. That bill was held under submission in the Senate Committee on Appropriations due to the cost of implementing a new license.

AB 586 (Flora of 2025) would have instead brought fiduciary corporations into the Bureau’s enforcement jurisdiction without the cost of creating a new license by requiring all shareholders, officers, directors, and employees rendering professional services to be licensed as a fiduciary and to submit a report upon Bureau request to establish who is working as a fiduciary on behalf of the corporation. AB 586 was also held in Appropriations due to unabsorbable workload as a result of processing reports, increased complaint volume and complexity, promulgating regulations, and required IT changes.

The Bureau is one of the smallest licensing entities within DCA at three authorized staff positions. Consequently, any new workload created by legislation has a high likelihood of not being absorbable with existing resources. Unlike the predecessor bills, this bill authorizes the Bureau to charge a fee to the fiduciary corporations, which would offset the new workload by allowing the Bureau to obtain personnel resources needed to implement and carry out the provisions of this legislation.

June Amendments. Among the substantive recent amendments, the bill now adds a delayed implementation date that would allow DCA’s Office of Information Services to create a new registration type in PFB’s licensing system, as well as time to promulgate regulations to adopt fees that would stand up the registration program for fiduciary corporations. Additionally, the fees are amended to reflect initial and renewal fees that are required to support a special fund program such as PFB. All other amendments are technical and clarifying.

1. Related Legislation. AB 586 (Flora of 2025) would have authorized licensed professional fiduciaries to form professional corporations in compliance with the Moscone-Knox Corporation Act; required licensees to notify the PFB if serving under a professional fiduciary corporation and submit an annual report, as specified; clarified who a superior court may appoint to specified fiduciary positions; required fiduciary licensees to resign an appointment made in violation of existing law; and prohibited a licensee from accepting payment for services rendered under that appointment. (Status: This bill was held under submission in the Senate Committee on Appropriations.)

AB 2148 (Low of 2024) would have established a professional fiduciary corporate registration administered by the Bureau and made it a violation for a corporation to render professional fiduciary services without being registered. (Status: This bill was held under submission in the Senate Committee on Appropriations.)

1. Arguments in Support. The Professional Fiduciary Association of California writes, “AB 1939 authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, trustee of a trust. The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney. The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.”

SUPPORT AND OPPOSITION:

Support:

Professional Fiduciary Association of California

Opposition:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1939

Author:(Flora)

As Amended Ver:May 18, 2026

Majority vote

SUMMARY

Authorizes professional fiduciaries, beginning January 1, 2028, to form professional fiduciary professional corporations, as specified.

Major Provisions

1. Authorizes, beginning January 1, 2028, the formation of professional fiduciary professional corporations as follows:
   1. Authorizes one or more licensees to organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.
   2. Specifies that the governmental agency designated for the Moscone-Knox Professional Corporation Act is the Professional Fiduciaries Bureau (PFB).
   3. Clarifies that the PFB may adopt, repeal, or amend regulations for professional fiduciary professional corporations.
   4. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with all statutes and regulations pertaining to the corporation and the conduct of its affairs.
   5. Requires professional fiduciary professional corporations to comply with the Moscone-Knox Professional Corporation Act, establishes requirements for registration with the Secretary of State, and specifies other technical details around corporate practice.
   6. Requires, upon request of the PFB, each professional fiduciary professional corporation to provide to the PFB a corporation-wide report consisting of specified corporate structure and client information.
   7. Specifies that the corporation-wide report is an investigatory or security file that is compiled for licensing purposes that shall not be disclosed to the public pursuant to the California Public Records Act except under specified circumstances.
   8. Makes it unprofessional conduct for a professional fiduciary professional corporation to fail to submit the corporation-wide report within 60 days of the request, or to respond to an inquiry from the PFB related to the corporation within 60 days of the request.
   9. Outlines the process that applies when a professional fiduciary professional corporation must follow when appointed in a matter that violates the Probate Code provisions added under this bill.
2. Makes the following conforming changes to the Professional Fiduciaries Act:
   1. Requires the PFB to set an annual fee of $1,000 or more, as specified, for the implementation and regulation of professional fiduciary professional corporations by regulation.
   2. Requires the PFB to include specified professional fiduciary professional corporation information in its licensee files.
   3. Requires licensees to include specified professional fiduciary professional corporation in their annual case information filings with the PFB.
   4. Adds to the list of causes for disciplinary action failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the PFB, including inquiries and documents related to a professional fiduciary professional corporation.
3. Repeals the court appointment prohibitions under the Probate Code related to professional fiduciaries and replaces it with the following:
   1. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the professional fiduciary professional corporation satisfies any of the following:
      1. Holds a current, unsuspended license issued pursuant to the Professional Fiduciaries Act to act or hold themselves out to the public as a professional fiduciary.
      2. Is exempt from the licensing requirements.
      3. Unless exempt from licensing requirements, is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act and as provided for in the Professional Fiduciaries Act. When making this appointment, the petition and appointment must specify the licensed professional fiduciary having primary responsibility for the matter. A professional fiduciary professional corporation may not be appointed as any of the following:
         1. Guardian of the person of a ward.
         2. Conservator of the person of a conservatee.
         3. Any office under the Health Care Decisions Law.
   2. Duplicates the prohibition that a person may not act or hold themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary.
4. Makes other technical and conforming changes.

COMMENTS

Background. The word "fiduciary" is a term of art used to describe a person who is entrusted to act in the best interest of another person or entity (the principal). A fiduciary often acts as an agent or representative, making financial, legal, healthcare, or other decisions that are typically made by the principal directly. That trust comes with the highest level of legal responsibility. Legally, a fiduciary's duties are loyalty and care—they are expected to put the principal's interests above their own.

Many licensed professionals act as fiduciaries for their clients, such as attorneys, accountants, and real estate agents. There are also unlicensed people or entities with fiduciary duties, such as corporate officers and directors, financial advisors, trustees, and court appointed conservators and guardians.

The level of trust and confidence placed in a fiduciary leaves the principal vulnerable to significant harm from fraud or incompetence. Because fiduciaries are treated as if the principal were making the decision, they have nearly unrestricted control over legal and financial instruments like bank accounts, investments, and contracts. Improper medical or home care can also result in injury or death.

For licensed professionals, clients are directly protected by the professional conduct requirements required of the licensee by their respective practice acts and licensing entities. For unlicensed fiduciaries, principals rely on indirect protections and expectations that come with familial relationships or employer-employee, shareholder, or other business obligations. However, there are fewer indirect protections for principals utilizing a fiduciary who is not a family member or an integral part of a business organization.

The Professional Fiduciaries Act aims to provide professional licensing protection for the latter principals. The act requires a license issued by the PFB when acting as a "professional fiduciary," which is defined to mean a person who acts as a fiduciary for more than one principal who they are not related to. The minimum number of principals increases to three or four depending on the type of fiduciary service provided.

Corporations and Licensed Practice. Except in specifically authorized situations, corporations and limited liability companies (LLCs) are not authorized to obtain a professional license. Corporations and LLCs are distinct entities with their own business assets. This structure shields the personal assets of their owners, officers, and shareholders. This corporate shield is antithetical to the professional conduct and competence requirements of a license. Professional licensing laws are intended to protect consumers by ensuring individual accountability and liability.

Licensing practice acts that do authorize the issuance of licenses directly to corporations and LLCs, such as the Contractors State License Law, reconcile this conflict by requiring designated qualified managers and financial protections such as liability insurance or surety bonds. This ensures that there is at least one responsible individual and there are financial remedies for consumers.

For practice acts that do not authorize corporations to hold licenses but otherwise authorize corporate practice of the profession, licensees may form a specific type of corporation called a "professional corporation" under the Moscone-Knox Professional Corporation Act. Instead Moscone-Knox limits professional corporations to a single profession, restricts ownership and control to authorized licensees, and authorizes services only through employees who are licensed to provide the services. This ensures the appropriate licensing board can effectively pierce the corporate shield in the event of malpractice or incompetence.

Professional Fiduciary Professional Corporations. The Professional Fiduciaries Act does not authorize corporations to provide professional fiduciary services. However, according to the sponsor, there are still situations in which unlicensed corporate entities have been designated as professional fiduciaries. One example provided results from a grey area in the Probate Code regarding trusts. Currently, there is no explicit restriction on the person or entity a testator may name as successor trustee in their will. The appointed trustee is simply determined by the testator's stated wishes as opposed to a court appointment. As a result, the testator may name any entity as a trustee, regardless of the licensing status of the members of that entity.

This bill attempts to address the problem by creating a legal pathway for professional fiduciary corporations and reinforcing the prohibition against unlicensed corporate fiduciary practice. It does so by authorizing licensees to form professional fiduciary corporations under the Professional Fiduciaries Act and Moscone-Knox and explicitly limiting the corporate provision of professional fiduciary services to professional fiduciary professional corporations. It also includes additional transparency measures, including reporting and disclosure requirements.

According to the Author

[This bill] expressly authorizes licensed professional fiduciaries, like other professionals, to form a professional corporation that could be appointed by the court to act as a guardian of an estate, conservator of an estate, personal representative of a decedent's estate, or trustee of a trust. Most importantly, the bill protects consumers of these services, first, by requiring the members of the corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.

Arguments in Support

The Professional Fiduciary Association of California (sponsor) writes in support:

[This bill] authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent's estate, trustee of a trust.

The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney.

The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. The Bureau estimates ongoing costs of $79,000 in fiscal year (FY) 2028-29, $256,000 in FY 2029-30, and $358,000 in FY 2030-31 and ongoing for 1.5 additional staff positions to implement the program and investigate violation complaints, including referrals to the Attorney General's (AG's) Office (Professional Fiduciary Fund). This estimate assumes at least 100 applicants in years one and two and 15 in each of the next four years and between 30 to 40 complaints against licensed corporations beginning in year three and ongoing. The Bureau assumes approximately 50% of complaints may be referred to the AG's Office.

The 2025 budget act provides approximately $1.12 million (Professional Fiduciaries Fund) and 4.5 positions to support the continued operation of the Bureau's licensing and enforcement activities. Boards and bureaus within DCA are "special funded," meaning they derive their funding from fees charged to licensees. The Bureau notes the $1,000 fee required in the bill to implement and regulate professional fiduciary corporations appears to be a one-time registration fee (as there is no license renewal or ongoing fee language in the bill) and may be insufficient to support ongoing program costs.

1. The Bureau must establish a fee via regulations prior to implementation. The Bureau anticipates this process will take approximately 12 to 24 months to complete and up to 15% of staff time. Additionally, the Bureau must update various existing forms and provide outreach on the new registrants. The Bureau indicates this workload is absorbable within existing resources.
2. The Office of Information Services (OIS) within DCA reports one-time IT costs of approximately $50,000 to add a new registration type and to allow Bureau licensees to be associated with the corporate registrations. OIS presumes this will be a one-time payment and the registration type will have low complexity. OIS indicates delayed implementation is required to get the IT work completed after regulations are finished. The office indicates these costs are absorbable through the redirection of existing resources.

VOTES

ASM BUSINESS AND PROFESSIONS: 19-0-0

YES: Berman, Johnson, Addis, Ahrens, Alanis, Bains, Aguiar-Curry, Caloza, Chen, Elhawary, Hadwick, Haney, Hart, Irwin, Jackson, Lowenthal, Macedo, Nguyen, Pellerin

ASM JUDICIARY: 12-0-0

YES: Kalra, Macedo, Bauer-Kahan, Bryan, Connolly, Dixon, Harabedian, Pacheco, Papan, Sanchez, Stefani, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache, Ta, Tangipa

UPDATED

VERSION: May 18, 2026

CONSULTANT: Vincent Chee / B. & P. / (916) 319-3301 FN: 0003047

Date of Hearing: April 29, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1939

Author:(Flora) – As Introduced Ver:February 13, 2026

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill, beginning January 1, 2028, authorizes licensed fiduciaries to form professional fiduciary professional corporations under the Professional Fiduciaries Act (Fiduciaries Act).

Specifically, this bill:

1. Authorizes, beginning January 1, 2028, the formation of professional fiduciary professional corporations as follows:
2. Authorizes one or more licensees to organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.
3. Designates the Professional Fiduciaries Bureau (Bureau) as the governmental agency regulating professional fiduciary corporations for purposes of the Moscone-Knox Professional Corporation Act.
4. Requires a professional fiduciary corporation to register with the Secretary of State and for the professional fiduciary professional corporation, its shareholders, officers, directors, and employees rendering professional services who are licensed fiduciaries to comply with the Moscone-Knox Professional Corporation Act, the Fiduciaries Act, and all other statutes and regulations that pertain to professional corporations.
5. Requires, upon request of the Bureau, each professional fiduciary corporation to provide a corporation-wide report consisting of specified licensee registration and client log information and specifies that the report may not be disclosed to the public pursuant to the California Public Records Act, with exceptions.
6. Requires the Bureau to set a fee for the implementation and regulation of professional fiduciary professional corporations by regulation and specifies that the amount of the fee be at least $1,000 but may not exceed reasonable costs of implementing and regulating professional fiduciary professional corporations.
7. Repeals the court appointment prohibitions under the Probate Code related to professional fiduciaries and instead prohibits a superior court from appointing or permitting a professional fiduciary to continue in any office as a guardian, conservator, personal representative, or trustee, unless the professional fiduciary holds a current professional fiduciary license, is exempt from licensing requirements, or is a professional fiduciary corporation, as provided.

FISCAL EFFECT:

1. The Bureau estimates ongoing costs of $79,000 in fiscal year (FY) 2028-29, $256,000 in FY 2029-30, and $358,000 in FY 2030-31 and ongoing for 1.5 additional staff positions to implement the program and investigate violation complaints, including referrals to the Attorney General’s (AG’s) Office (Professional Fiduciary Fund). This estimate assumes at least 100 applicants in years one and two and 15 in each of the next four years and between 30 to 40 complaints against licensed corporations beginning in year three and ongoing. The Bureau assumes approximately 50% of complaints may be referred to the AG’s Office.

The 2025 budget act provides approximately $1.12 million (Professional Fiduciaries Fund) and 4.5 positions to support the continued operation of the Bureau’s licensing and enforcement activities. Boards and bureaus within DCA are “special funded,” meaning they derive their funding from fees charged to licensees. The Bureau notes the $1,000 fee required in the bill to implement and regulate professional fiduciary corporations appears to be a one-time registration fee (as there is no license renewal or ongoing fee language in the bill) and may be insufficient to support ongoing program costs.

1. The Bureau must establish a fee via regulations prior to implementation. The Bureau anticipates this process will take approximately 12 to 24 months to complete and up to 15% of staff time. Additionally, the Bureau must update various existing forms and provide outreach on the new registrants. The Bureau indicates this workload is absorbable within existing resources.
2. The Office of Information Services (OIS) within DCA reports one-time IT costs of approximately $50,000 to add a new registration type and to allow Bureau licensees to be associated with the corporate registrations. OIS presumes this will be a one-time payment and the registration type will have low complexity. OIS indicates delayed implementation is required to get the IT work completed after regulations are finished. The office indicates these costs are absorbable through the redirection of existing resources.

COMMENTS:

1. Purpose. This bill is sponsored by the Professional Fiduciary Association of California. According to the author:

[This bill] expressly authorizes licensed professional fiduciaries, like other professionals, to form a professional corporation that could be appointed by the court to act as a guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, or trustee of a trust. Most importantly, the bill protects consumers of these services, first, by requiring the members of the corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.

1. Background. Fiduciaries are individuals serving as conservators, guardians, trustees, or personal representatives to manage the affairs of individuals who may lack capacity or have delegated authority to act on their behalf. When these duties are performed for compensation, the law recognizes the actor as a “professional fiduciary.” Existing law regulates and licenses professional fiduciaries under the Fiduciaries Act and establishes the Bureau, within DCA, to administer and enforce the Fiduciaries Act. Licensure requirements ensure fiduciaries meet minimum standards of competency and accountability to protect the public, especially vulnerable individuals.

Existing law requires a valid license to legally provide professional fiduciary services but restricts fiduciary licensure to natural persons. As a result, corporations and other legal entities are categorically ineligible to obtain a license under the Fiduciaries Act. Existing law prohibits courts from appointing a fiduciary in a representative capacity unless the person holds a current, unsuspended license issued by the Bureau, unless they are otherwise exempt. While “person” can sometimes include corporate entities under California law, the Fiduciaries Act does not extend its licensing authority to business organizations.

In practice, however, there are situations where professional corporations provide fiduciary services even though, as entities, they cannot obtain a license. According to the bill’s sponsor, although the Probate Code does not authorize the courts to appoint entities in representative capacities, courts have nonetheless approved petitions seeking the appointment of professional fiduciary organizations, as opposed to an individual professional.

This bill seeks to resolve this inconsistency by authorizing licensed professional fiduciaries to form professional fiduciary corporations under the Moscone-Knox Professional Corporations Act. The bill specifies that only licensed fiduciaries may serve as shareholders, officers, directors, and employees of such corporations and requires individual licensees to report their corporate affiliation to the Bureau.

The bill also conforms state law to existing judicial practice by expressly authorizing a court to appoint a professional fiduciary corporation in a representative role as a guardian, conservator, personal representative, or trustee.

1. Prior Legislation. AB 586 (Flora), of this legislative session, was substantially similar to this bill except it did not contain the delayed implementation date, fees, and other technical details. AB 586 was held on the Senate Appropriations Committee’s suspense file.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 14, 2026

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

ABPCA Bill Id:AB 1939

Author:(Flora) – As Introduced Ver:February 13, 2026

PROPOSED CONSENT

SUBJECT: Professional fiduciaries: corporate practice

KEY ISSUE: Should California law be amended to authorize licensed professional fiduciaries to organize and operate as professional fiduciary corporations, thereby allowing such entities to be appointed by a court to serve in representative roles such as guardian, conservator, trustee, or personal representative?

SYNOPSIS

Although the Probate Code does not expressly authorize the courts to appoint professional fiduciary organizations in representative capacities, courts have nonetheless approved petitions seeking the appointment of entities as opposed to an individual professional. Seeking to modernize California’s professional fiduciary framework, last year AB 586 (Flora, 2025) was introduced authorizing the formation and regulation of professional fiduciary corporations. That bill, passed out of the Assembly with zero “no” votes before being held on the Senate Appropriations suspense file.

Building on AB 586, this bill seeks to modernize the legal framework governing professional fiduciaries by aligning statutory authority with current practices, codifying safeguards to ensure that only licensed professionals may render fiduciary services under a corporate structure and facilitating court appointments of such corporations in appropriate circumstances. This bill is sponsored by the Professional Fiduciary Association of California. There is no registered opposition and was approved by the Assembly Committee on Business and Professions on consent.

SUMMARY: Authorizes licensed fiduciaries to organize professional fiduciary professional corporations under the Professional Fiduciaries Act. Specifically, this bill:

1. Authorizes one or more licensees to organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.
2. Designates the Professional Fiduciaries Bureau (PFB) as the governmental agency regulating professional fiduciary corporations for purposes of the Moscone-Knox Professional Corporation Act.
3. Authorizes the PFB to adopt, repeal, or amend regulations for professional fiduciary professional corporations.
4. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with all statutes and regulations pertaining to the corporation and the conduct of its affairs.
5. Requires the professional fiduciary professional corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services to comply with the Moscone-Knox Professional Corporation Act.
6. Requires any individual providing professional fiduciary services on behalf of the corporation to be a licensee actively licensed with the PFB to be considered a qualified person for the purposes of the Moscone-Knox Professional Corporation Act.
7. Specifies that a licensee serving as an officer, director, shareholder, or employee of the corporation shall not be exempt from individual discipline for violations of this act, PFB regulations, or other applicable laws and regulations.
8. Specifies that any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in the Moscone-Knox Professional Corporation Act, shall not accrue to the benefit of that shareholder or their shares in the corporation.
9. Requires each professional fiduciary corporation to provide to the PFB, a corporation-wide report consisting of all of the following information:
   1. The full name, license number, address, and telephone number for any licensee contained in the name of the corporation.
   2. The full names and license numbers of all officers, directors, shareholders, and licensed employees of the corporation.
   3. The corporation entity number as issued by the Secretary of State and current statement of information filed with the Secretary of State.
   4. A client log containing all of the following:
      1. A list of all case names, whether the cases are court supervised or noncourt supervised, the date the corporation was appointed, and the responsible licensed professional fiduciary on the case.
      2. The court location and case number for each case that is supervised by a court.
      3. The aggregate managed asset value of all matters under the management of the corporation.
10. Specifies that the corporation-wide report is an investigatory or security file that is compiled for licensing purposes that is not to be disclosed to the public pursuant to the California Public Records Act except in any of the following circumstances:
    1. In the course of any disciplinary proceeding by the PFB after the filing of a formal accusation.
    2. In the course of any legal action to which the PFB is a party.
    3. In response to an official inquiry from a city, county, state, or federal agency.
    4. In response to a subpoena or summons enforceable by order of a court.
    5. When otherwise specifically required by law.
11. Specifies that the failure of a registrant of a professional fiduciary corporation to submit the corporation-wide report within 60 days of the request or to respond to an inquiry from the PFB related to the corporation within 60 days of the request, is to be considered unprofessional conduct.
12. Specifies that if a professional fiduciary professional corporation is appointed in a matter that violates the Probate Code provisions added under this bill, then both of the following shall apply:
    1. The appointment of a professional fiduciary professional corporation in that matter shall be considered void and treated by the relevant jurisdiction as if no appointment was made.
    2. The professional fiduciary professional corporation shall do all of the following:
       1. Immediately resign the appointment.
       2. Notify the court or party that appointed the professional fiduciary professional corporation of the resignation.
       3. Cooperate with all efforts to have a successor appointed.
       4. Waive compensation for any services related to the resignation and the appointment of a successor.
13. Makes it unprofessional conduct if the professional fiduciary corporation fails to resign the appointment.
14. Prohibits a professional fiduciary professional corporation or agent of the professional fiduciary professional corporation from billing or imposing any costs or fees for any services performed or appointment changes while the professional fiduciary professional corporation is improperly named.
15. Specifies that, for a matter that is not supervised by a court and not prohibited by the Probate Code created under this bill, a professional fiduciary professional corporation may serve only when a licensee is designated as the responsible person on the matter.
16. Makes the following conforming changes to the Professional Fiduciaries Act:
    1. Requires the PFB to set a fee for the implementation and regulation of professional fiduciary professional corporations by regulation.
    2. Specifies that the amount of the fee shall be at least $1,000 but shall not exceed reasonable costs of implementing and regulating professional fiduciary professional corporations.
    3. Requires the PFB to additionally include in its licensee files the following information:
       1. Whether a professional fiduciary professional corporation for which the licensee is appointed with or serving under, has ever been removed for cause or has ever resigned or settled a matter for which a complaint against the professional fiduciary professional corporation or the licensee has been filed with the court.
       2. The case names, court locations, and case numbers for which a licensee is appointed with or serving under a professional fiduciary professional corporation.
       3. Whether the licensee is appointed with or serving under a professional fiduciary professional corporation, and the name of the professional fiduciary professional corporation.
    4. Requires a licensee to additionally include in its annual case information filing with the PFB the following information:
       1. Whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. The licensee must report removals and file an additional statement of issues and facts pertaining to the case.
       2. Other specified cases involving a professional fiduciary professional corporation for which the licensee is appointed with or serving under.
       3. Indicate on each case, whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
    5. Adds to the list of causes for disciplinary action failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the PFB, including inquiries and documents related to a professional fiduciary professional corporation.
17. Repeals the court appointment prohibitions under the Probate Code related to professional fiduciaries and replaces it with the following:
    1. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the professional fiduciary professional corporation satisfies any of the following:
       1. Holds a current, unsuspended license issued pursuant to the Professional Fiduciaries Act to act or hold themselves out to the public as a professional fiduciary.
       2. Is exempt from the licensing requirements.
       3. Unless exempt from licensing requirements, is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act and as provided for in the Professional Fiduciaries Act. When making this appointment, the petition and appointment must specify the licensed professional fiduciary having primary responsibility for the matter. A professional fiduciary professional corporation may not be appointed as any of the following:
          1. Guardian of the person of a ward.
          2. Conservator of the person of a conservatee.
          3. Any office under the Health Care Decisions Law.
    2. Duplicates the prohibition that a person may not act or hold themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary.
18. Makes other technical and conforming changes.

EXISTING LAW:

1. Regulates and licenses professional fiduciaries under the Professional Fiduciaries Act. (Business & Professions Code Sections 6500-6592.)
2. Establishes the Professional Fiduciaries Board (PFB) within the Department of Consumer Affairs to administer and enforce the Professional Fiduciaries Act. (Business & Professions Code Section 6510.)
3. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (Business & Professions Code Section 6530.)
4. Defines a “professional fiduciary” as the following:
   1. A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (Business & Professions Code Section 6501 (f)(1)(A).)
   2. A personal representative of a decedent’s estate, as defined in the Probate Code, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (Business & Professions Code 6501 (f)(1)(B) and Probate Code Section 58 (a).)
   3. A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (Business & Professions Code Section 6501 (f)(2).)
5. Requires the PFB to maintain specified information in each licensee’s file and make the information available to a court for any purpose, as specified. (Business & Professions Code Section 6534.)
6. Requires a licensee to initially, and annually thereafter, file with the PFB a statement under penalty of perjury containing specified case information. (Business & Professions Code Section 6561.)
7. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. (Corporations Code Section 13401 (a).)
8. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (Corporations Code Section 13401 (b).)
9. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corporations Code Section 13400-13410.)
10. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permit a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of the Professional Fiduciaries Act. (Probate Code Section 2340.)
11. Authorizes an incapacitated professional fiduciary’s conservator, agent under a power of attorney for asset management, trustee, or interested person to petition the court for the appointment of a professional fiduciary practice administrator to take control of the incapacitated professional fiduciary’s files and matters, as specified. (Probate Code Sections 2469 & 9765.)

FISCAL EFFECT: As currently in print this bill is keyed fiscal.

COMMENTS: This bill seeks to modernize the legal framework governing professional fiduciaries by aligning statutory authority with current practices, codifying safeguards to ensure that only licensed professionals may render fiduciary services under a corporate structure and facilitating court appointments of such corporations in appropriate circumstances. As explained by the author:

AB 1939 expressly authorizes licensed professional fiduciaries, like other professionals, to form a professional corporation that could be appointed by the court to act as a guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, or trustee of a trust.

Most importantly, the bill protects consumers of these services, first, by requiring the members of the corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.

Background. Fiduciaries are entrusted with significant legal and ethical responsibilities, managing the affairs of individuals who may lack capacity or have delegated authority to act on their behalf. When these duties are performed for compensation, the law recognizes the actor as a “professional fiduciary.” Under the Professional Fiduciaries Act (Business & Profession Code Section 6500 et seq.), individuals serving as conservators, guardians, trustees, personal representatives of decedents’ estates, or agents under durable power of attorney must be licensed by the Professional Fiduciaries Bureau (PFB), a regulatory body within the Department of Consumer Affairs. Licensure requirements ensure that fiduciaries meet minimum standards of competency and accountability to protect the public, especially vulnerable individuals such as the elderly and those with diminished capacity.

Need for the bill. Current law restricts fiduciary licensure to natural persons. As a result, corporations and other legal entities are categorically ineligible to obtain a license under the Act. Because a valid license is required to legally provide professional fiduciary services, the inability of entities to be licensed has had the practical effect of barring them from lawfully offering such services—at least where the fiduciary is appointed by a court. (Probate Code Section 2340.) Existing statutory language prohibits courts from appointing a fiduciary in a representative capacity unless the person holds a current, unsuspended license issued by the Bureau, unless they are otherwise exempt. (Id.) While “person” can sometimes include corporate entities under California law, the Professional Fiduciaries Act does not extend its licensing authority to business organizations. Accordingly, only individuals may obtain licensure, even though professional corporations are already permitted in other regulated professions, such as law, medicine, and accountancy, under the Moscone-Knox Professional Corporation Act. (Corporations Code Section 13400 et seq.)

Despite the existing statutory framework, the practical reality is more complex. According to the bill’s sponsor, professional fiduciary organizations are currently operating under names that suggest corporate structure, and courts have, at times, approved petitions appointing such entities to fiduciary roles. This incongruity between the statutory licensing scheme and real-world practice creates uncertainty for courts, fiduciaries, clients, and beneficiaries alike.

This bill aims to resolve this tension by explicitly authorizing licensed professional fiduciaries to form professional fiduciary corporations under the Moscone-Knox framework. The bill ensures that only licensed fiduciaries may serve as shareholders, officers, directors, and employees of such corporations. It further requires individual licensees to report their corporate affiliation to the PFB, thereby promoting regulatory oversight and accountability.

By expressly authorizing courts to appoint professional fiduciary corporations in representative roles—guardian, conservator, personal representative, or trustee—this bill conforms the law to existing judicial practice and recognizes the evolving nature of fiduciary service delivery.

ARGUMENTS IN SUPPORT: The bill’s sponsor, the Professional Fiduciary Association of California, explains the need for this measure:

The measure allows licensed professional fiduciaries to form professional corporations, and subjects those entities to consumer protection requirements and oversight.

AB 1939 authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, trustee of a trust.

The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney.

The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.

REGISTERED SUPPORT / OPPOSITION:

Support

Professional Fiduciary Association of California (sponsor)

Opposition

None on file

Analysis Prepared by: Griff Ryan-Roberts / JUD. / (916) 319-2334

Date of Hearing:

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

ABPCA Bill Id:AB 1939

Author:(Flora) – As Introduced Ver:February 13, 2026

NOTE: This bill is double referred and if passed by this Committee will be re-referred to the Assembly Judiciary Committee.

SUBJECT: Professional fiduciaries: corporate practice.

SUMMARY: Authorizes professional fiduciaries, beginning January 1, 2028, to form professional fiduciary professional corporations, as specified.

EXISTING LAW:

1. Regulates and licenses professional fiduciaries under the Professional Fiduciaries Act. (Business and Professions Code (BPC) §§ 6500-6592)
2. Establishes the Professional Fiduciaries Bureau (PFB) within the Department of Consumer Affairs to administer and enforce the Professional Fiduciaries Act. (BPC § 6510)
3. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (BPC § 6530)
4. Defines a “professional fiduciary” as the following:
   1. A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(A))
   2. A personal representative of a decedent’s estate for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(B), Probate Code (PROB) § 58(a))
   3. A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (BPC § 6501(f)(2))
5. Requires the PFB to maintain specified information in each licensee’s file and make the information available to a court for any purpose, as specified. (BPC § 6534)
6. Requires a licensee to initially, and annually thereafter, file with the PFB a statement under penalty of perjury containing specified case information. (BPC § 6561)
7. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corporations Code (CORP) §§ 13400-13410)
8. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. (CORP § 13401(a))
9. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (CORP § 13401(b))
10. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permitting a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of Professional Fiduciaries Act. (PROB § 2340)
11. Authorizes an incapacitated professional fiduciary’s conservator, agent under a power of attorney for asset management, trustee, or interested person to petition the court for the appointment of a professional fiduciary practice administrator to take control of the incapacitated professional fiduciary’s files and matters, as specified. (PROB §§ 2469, 9765)

THIS BILL:

1. Authorizes, beginning January 1, 2028, the formation of professional fiduciary professional corporations as follows:
   1. Authorizes one or more licensees to organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.
   2. Specifies that the governmental agency designated for the Moscone-Knox Professional Corporation Act is the PFB.
   3. Clarifies that the PFB may adopt, repeal, or amend regulations for professional fiduciary professional corporations.
   4. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with all statutes and regulations pertaining to the corporation and the conduct of its affairs.
   5. Requires the following of a professional fiduciary professional corporation:
      1. A professional fiduciary professional corporation shall register with the Secretary of State in accordance with the Corporations Code.
      2. The professional fiduciary professional corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services shall comply with the Moscone-Knox Professional Corporation Act.
      3. Any individual providing professional fiduciary services on behalf of the corporation shall be a licensee actively licensed with the PFB to be considered a qualified person for the purposes of the Moscone-Knox Professional Corporation Act.
      4. A licensee serving as an officer, director, shareholder, or employee of the corporation shall not be exempt from individual discipline for violations of this act, PFB regulations, or other applicable laws and regulations.
      5. Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in the Moscone-Knox Professional Corporation Act, shall not accrue to the benefit of that shareholder or their shares in the corporation.
      6. The professional fiduciary professional corporation shall not permit an unqualified person to serve as an officer, director, shareholder, or licensed employee.
      7. A professional fiduciary professional corporation name shall contain the last name of at least one current or former qualified person.
      8. The licensee or licensees named on the Secretary of State registration shall serve as the primary contact for the PFB.
      9. A professional fiduciary professional corporation or agent of a fiduciary corporation shall not bill or impose any costs or fees to a client for incorporation or corporation name changes with the Secretary of State or on appointing documents or other records.
   6. Requires, upon request of the PFB, each professional fiduciary professional corporation to provide to the PFB a corporation-wide report consisting of all of the following information:
      1. The full name, license number, address, and telephone number for any licensee contained in the name of the corporation.
      2. The full names and license numbers of all officers, directors, shareholders, and licensed employees of the corporation.
      3. The corporation entity number as issued by the Secretary of State and current statement of information filed with the Secretary of State.
      4. A client log containing all of the following:
         1. A list of all case names, whether the cases are court supervised or noncourt supervised, the date the corporation was appointed, and the responsible licensed professional fiduciary on the case.
         2. The court location and case number for each case that is supervised by a court.
         3. The aggregate managed asset value of all matters under the management of the corporation.
   7. Specifies that the corporation-wide report is an investigatory or security file that is compiled for licensing purposes that shall not be disclosed to the public pursuant to the California Public Records Act except in any of the following circumstances:
      • 1. In the course of any disciplinary proceeding by the bureau after the filing of a formal accusation.
        2. In the course of any legal action to which the bureau is a party.
        3. In response to an official inquiry from a city, county, state, or federal agency.
        4. In response to a subpoena or summons enforceable by order of a court.
        5. When otherwise specifically required by law.
   8. Makes it unprofessional conduct for a professional fiduciary professional corporation to fail to submit the corporation-wide report within 60 days of the request, or to respond to an inquiry from the PFB related to the corporation within 60 days of the request.
   9. Specifies that if a professional fiduciary professional corporation is appointed in a matter that violates the Probate Code provisions added under this bill, then both of the following shall apply:
      1. The appointment of a professional fiduciary professional corporation in that matter shall be considered void and treated by the relevant jurisdiction as if no appointment was made.
      2. The professional fiduciary professional corporation shall do all of the following:
         1. Immediately resign the appointment.
         2. Notify the court or party that appointed the professional fiduciary professional corporation of the resignation.
         3. Cooperate with all efforts to have a successor appointed.
         4. Waive compensation for any services related to the resignation and the appointment of a successor.
   10. Makes it unprofessional conduct if the professional fiduciary corporation fails to resign the appointment.
   11. Prohibits a professional fiduciary professional corporation or agent of the professional fiduciary professional corporation from billing or imposing any costs or fees for any services performed or appointment changes while the professional fiduciary professional corporation is improperly named.
   12. Specifies that, for a matter that is not supervised by a court and not prohibited by the Probate Code created under this bill, a professional fiduciary professional corporation may serve only when a licensee is designated as the responsible person on the matter.
2. Makes the following conforming changes to the Professional Fiduciaries Act:
   1. Requires the PFB to set a fee for the implementation and regulation of professional fiduciary professional corporations by regulation.
   2. Specifies that the amount of the fee shall be at least $1,000 but shall not exceed reasonable costs of implementing and regulating professional fiduciary professional corporations.
   3. Requires the PFB to additionally include in its licensee files the following information:
      1. Whether a professional fiduciary professional corporation for which the licensee is appointed with or serving under, has ever been removed for cause or has ever resigned or settled a matter for which a complaint against the professional fiduciary professional corporation or the licensee has been filed with the court.
      2. The case names, court locations, and case numbers for which a licensee is appointed with or serving under a professional fiduciary professional corporation.
      3. Whether the licensee is appointed with or serving under a professional fiduciary professional corporation, and the name of the professional fiduciary professional corporation.
   4. Requires a licensee to additionally include in its annual case information filing with the PFB the following information:
      1. Whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. The licensee must report removals and file an additional statement of issues and facts pertaining to the case.
      2. Other specified cases involving a professional fiduciary professional corporation for which the licensee is appointed with or serving under.
      3. Indicate on each case, whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
   5. Adds to the list of causes for disciplinary action failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the PFB, including inquiries and documents related to a professional fiduciary professional corporation.
3. Repeals the court appointment prohibitions under the Probate Code related to professional fiduciaries and replaces it with the following:
   1. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the professional fiduciary professional corporation satisfies any of the following:
      1. Holds a current, unsuspended license issued pursuant to the Professional Fiduciaries Act to act or hold themselves out to the public as a professional fiduciary.
      2. Is exempt from the licensing requirements.
      3. Unless exempt from licensing requirements, is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act and as provided for in the Professional Fiduciaries Act. When making this appointment, the petition and appointment must specify the licensed professional fiduciary having primary responsibility for the matter. A professional fiduciary professional corporation may not be appointed as any of the following:
         1. Guardian of the person of a ward.
         2. Conservator of the person of a conservatee.
         3. Any office under the Health Care Decisions Law.
   2. Duplicates the prohibition that a person may not act or hold themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary.
4. Makes other technical and conforming changes.

FISCAL EFFECT: Unknown; this bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by the Professional Fiduciary Association of California. According to the author, “[This bill] protects consumers first, by requiring the members of a professional fiduciary professional corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.”

Background. The word “fiduciary” is a term of art used to describe a person who is entrusted to act in the best interest of another person or entity (the principal). A fiduciary often acts as an agent or representative, making financial, legal, healthcare, or other decisions that are typically made by the principal directly. That trust comes with the highest level of legal responsibility. Legally, a fiduciary’s duties are loyalty and care—they are expected to put the principal’s interests above their own.

Many licensed professionals act as fiduciaries for their clients, such as attorneys, accountants, and real estate agents. There are also unlicensed people or entities with fiduciary duties, such as corporate officers and directors, financial advisors, trustees, and court appointed conservators and guardians.

The level of trust and confidence placed in a fiduciary leaves the principal vulnerable to significant harm from fraud or incompetence. Because fiduciaries are treated as if the principal were making the decision, they have nearly unrestricted control over legal and financial instruments like bank accounts, investments, and contracts. Improper medical or home care can also result in injury or death.

For licensed professionals, clients are directly protected by the professional conduct requirements required of the licensee by their respective practice acts and licensing entities. For unlicensed fiduciaries, principals rely on indirect protections and expectations that come with familial relationships or employer-employee, shareholder, or other business obligations. However, there are fewer indirect protections for principals utilizing a fiduciary who is not a family member or an integral part of a business organization.

The Professional Fiduciaries Act aims to provide professional licensing protection for the latter principals. The act requires a license issued by the PFB when acting as a “professional fiduciary,” which is defined to mean a person who acts as a fiduciary for more than one principal who they are not related to. The minimum number of principals increases to three or four depending on the type of fiduciary service provided.

Corporations and Licensed Practice. Except in specifically authorized situations, corporations and limited liability companies (LLCs) are not authorized to obtain a professional license. Corporations and LLCs are distinct entities with their own business assets. This structure shields the personal assets of their owners, officers, and shareholders. This corporate shield is antithetical to the professional conduct and competence requirements of a license. Professional licensing laws are intended to protect consumers by ensuring individual accountability and liability.

Licensing practice acts that do authorize the issuance of licenses directly to corporations and LLCs, such as the Contractors State License Law, reconcile this conflict by requiring designated qualified managers and financial protections such as liability insurance or surety bonds. This ensures that there is at least one responsible individual and there are financial remedies for consumers.

For practice acts that do not authorize corporations to hold licenses but otherwise authorize corporate practice of the profession, licensees may form a specific type of corporation called a “professional corporation” under the Moscone-Knox Professional Corporation Act. Instead Moscone-Knox limits professional corporations to a single profession, restricts ownership and control to authorized licensees, and authorizes services only through employees who are licensed to provide the services. This ensures the appropriate licensing board can effectively pierce the corporate shield in the event of malpractice or incompetence.

Professional Fiduciary Professional Corporations. The Professional Fiduciaries Act does not authorize corporations to provide professional fiduciary services. However, according to the sponsor, there are still situations in which unlicensed corporate entities have been designated as professional fiduciaries. One example provided results from a grey area in the Probate Code regarding trusts. Currently, there is no explicit restriction on the person or entity a testator may name as successor trustee in their will. The appointed trustee is simply determined by the testator’s stated wishes as opposed to a court appointment. As a result, the testator may name any entity as a trustee, regardless of the licensing status of the members of that entity.

This bill attempts to address the problem by creating a legal pathway for professional fiduciary corporations and reinforcing the prohibition against unlicensed corporate fiduciary practice. It does so by authorizing licensees to form professional fiduciary corporations under the Professional Fiduciaries Act and Moscone-Knox and explicitly limiting the corporate provision of professional fiduciary services to professional fiduciary professional corporations. It also includes additional transparency measures, including reporting and disclosure requirements.

Prior Related Legislation. AB 586 (Flora) of 2025 was substantially similar to this bill except that it did not contain the delayed implementation date, fees, and other technical details. AB 586 was held on the Senate Appropriations Committee suspense file.

AB 2148 (Low) of 2024 was similar to this bill except that it would have required the PFB to issue a certificate of registration to professional fiduciary corporations. AB 2148 was held on the Senate Appropriations Committee suspense file.

SB 1550 (Figueroa), Chapter 491, Statutes of 2006, first established the Professional Fiduciaries Act under the Board of Professional Fiduciaries.

ARGUMENTS IN SUPPORT:

The Professional Fiduciary Association of California (sponsor) writes in support:

[This bill] authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, trustee of a trust.

The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney.

The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.

ARGUMENTS IN OPPOSITION:

There is no opposition on file.

IMPLEMENTATION ISSUES:

Untethered Fee. This bill requires the PFB to establish a fee for the implementation of the professional fiduciary professional corporation provisions under this bill but there is no license, act, or other trigger tied to the fee. If this bill passes this Committee, the author may wish to identify the associated workload or delete the fee.

REGISTERED SUPPORT:

Professional Fiduciary Association of California (sponsor)

REGISTERED OPPOSITION:

There is no opposition on file.

Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301

Date of Hearing:

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

ABPCA Bill Id:AB 1939

Author:(Flora) – As Introduced Ver:February 13, 2026

NOTE: This bill is double referred and if passed by this Committee will be re-referred to the Assembly Judiciary Committee.

SUBJECT: Professional fiduciaries: corporate practice.

SUMMARY: Authorizes professional fiduciaries, beginning January 1, 2028, to form professional fiduciary professional corporations, as specified.

EXISTING LAW:

1. Regulates and licenses professional fiduciaries under the Professional Fiduciaries Act. (Business and Professions Code (BPC) §§ 6500-6592)
2. Establishes the Professional Fiduciaries Bureau (PFB) within the Department of Consumer Affairs to administer and enforce the Professional Fiduciaries Act. (BPC § 6510)
3. Prohibits a person from acting or holding themselves out to the public as a professional fiduciary unless licensed as a professional fiduciary, except as specified. (BPC § 6530)
4. Defines a “professional fiduciary” as the following:
   1. A person who acts as a guardian or conservator of the person, the estate, or the person and estate, for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(A))
   2. A personal representative of a decedent’s estate for two or more individuals at the same time who are not related to the professional fiduciary or to each other. (BPC § 6501(f)(1)(B), Probate Code (PROB) § 58(a))
   3. A person who acts as a trustee, agent under a durable power of attorney for health care, or agent under a durable power of attorney for finances, for more than three individuals, at the same time. (BPC § 6501(f)(2))
5. Requires the PFB to maintain specified information in each licensee’s file and make the information available to a court for any purpose, as specified. (BPC § 6534)
6. Requires a licensee to initially, and annually thereafter, file with the PFB a statement under penalty of perjury containing specified case information. (BPC § 6561)
7. Authorizes the formation of professional corporations under the Moscone-Knox Professional Corporation Act. (Corporations Code (CORP) §§ 13400-13410)
8. Defines “professional services” as any type of professional services that may be lawfully rendered pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. (CORP § 13401(a))
9. Defines “professional corporation” as a corporation that is engaged in rendering professional services in a single profession pursuant to a certificate of registration issued by the governmental agency regulating the profession as provided in the Moscone-Knox Professional Corporation Act and that in its practice or business designates itself as a professional or other corporation as may be required by statute. (CORP § 13401(b))
10. Prohibits a superior court from appointing a person to carry out the duties of a professional fiduciary, or permitting a person to continue those duties, unless the person holds a valid, unexpired, unsuspended license as a professional fiduciary, is exempt from the definition of “professional fiduciary,” or is exempt from the licensing requirements of Professional Fiduciaries Act. (PROB § 2340)
11. Authorizes an incapacitated professional fiduciary’s conservator, agent under a power of attorney for asset management, trustee, or interested person to petition the court for the appointment of a professional fiduciary practice administrator to take control of the incapacitated professional fiduciary’s files and matters, as specified. (PROB §§ 2469, 9765)

THIS BILL:

1. Authorizes, beginning January 1, 2028, the formation of professional fiduciary professional corporations as follows:
   1. Authorizes one or more licensees to organize a professional fiduciary professional corporation to provide professional fiduciary services that require licensure under this chapter.
   2. Specifies that the governmental agency designated for the Moscone-Knox Professional Corporation Act is the PFB.
   3. Clarifies that the PFB may adopt, repeal, or amend regulations for professional fiduciary professional corporations.
   4. Defines a professional fiduciary professional corporation as a corporation that is authorized to render professional services if that corporation and its shareholders, officers, directors, and employees rendering professional services who are licensed professional fiduciaries are in compliance with all statutes and regulations pertaining to the corporation and the conduct of its affairs.
   5. Requires the following of a professional fiduciary professional corporation:
      1. A professional fiduciary professional corporation shall register with the Secretary of State in accordance with the Corporations Code.
      2. The professional fiduciary professional corporation, its officers, directors, shareholders, and employees rendering professional fiduciary services shall comply with the Moscone-Knox Professional Corporation Act.
      3. Any individual providing professional fiduciary services on behalf of the corporation shall be a licensee actively licensed with the PFB to be considered a qualified person for the purposes of the Moscone-Knox Professional Corporation Act.
      4. A licensee serving as an officer, director, shareholder, or employee of the corporation shall not be exempt from individual discipline for violations of this act, PFB regulations, or other applicable laws and regulations.
      5. Any income of the corporation attributable to professional services rendered while a shareholder is a disqualified person, as defined in the Moscone-Knox Professional Corporation Act, shall not accrue to the benefit of that shareholder or their shares in the corporation.
      6. The professional fiduciary professional corporation shall not permit an unqualified person to serve as an officer, director, shareholder, or licensed employee.
      7. A professional fiduciary professional corporation name shall contain the last name of at least one current or former qualified person.
      8. The licensee or licensees named on the Secretary of State registration shall serve as the primary contact for the PFB.
      9. A professional fiduciary professional corporation or agent of a fiduciary corporation shall not bill or impose any costs or fees to a client for incorporation or corporation name changes with the Secretary of State or on appointing documents or other records.
   6. Requires, upon request of the PFB, each professional fiduciary professional corporation to provide to the PFB a corporation-wide report consisting of all of the following information:
      1. The full name, license number, address, and telephone number for any licensee contained in the name of the corporation.
      2. The full names and license numbers of all officers, directors, shareholders, and licensed employees of the corporation.
      3. The corporation entity number as issued by the Secretary of State and current statement of information filed with the Secretary of State.
      4. A client log containing all of the following:
         1. A list of all case names, whether the cases are court supervised or noncourt supervised, the date the corporation was appointed, and the responsible licensed professional fiduciary on the case.
         2. The court location and case number for each case that is supervised by a court.
         3. The aggregate managed asset value of all matters under the management of the corporation.
   7. Specifies that the corporation-wide report is an investigatory or security file that is compiled for licensing purposes that shall not be disclosed to the public pursuant to the California Public Records Act except in any of the following circumstances:
      • 1. In the course of any disciplinary proceeding by the bureau after the filing of a formal accusation.
        2. In the course of any legal action to which the bureau is a party.
        3. In response to an official inquiry from a city, county, state, or federal agency.
        4. In response to a subpoena or summons enforceable by order of a court.
        5. When otherwise specifically required by law.
   8. Makes it unprofessional conduct for a professional fiduciary professional corporation to fail to submit the corporation-wide report within 60 days of the request, or to respond to an inquiry from the PFB related to the corporation within 60 days of the request.
   9. Specifies that if a professional fiduciary professional corporation is appointed in a matter that violates the Probate Code provisions added under this bill, then both of the following shall apply:
      1. The appointment of a professional fiduciary professional corporation in that matter shall be considered void and treated by the relevant jurisdiction as if no appointment was made.
      2. The professional fiduciary professional corporation shall do all of the following:
         1. Immediately resign the appointment.
         2. Notify the court or party that appointed the professional fiduciary professional corporation of the resignation.
         3. Cooperate with all efforts to have a successor appointed.
         4. Waive compensation for any services related to the resignation and the appointment of a successor.
   10. Makes it unprofessional conduct if the professional fiduciary corporation fails to resign the appointment.
   11. Prohibits a professional fiduciary professional corporation or agent of the professional fiduciary professional corporation from billing or imposing any costs or fees for any services performed or appointment changes while the professional fiduciary professional corporation is improperly named.
   12. Specifies that, for a matter that is not supervised by a court and not prohibited by the Probate Code created under this bill, a professional fiduciary professional corporation may serve only when a licensee is designated as the responsible person on the matter.
2. Makes the following conforming changes to the Professional Fiduciaries Act:
   1. Requires the PFB to set a fee for the implementation and regulation of professional fiduciary professional corporations by regulation.
   2. Specifies that the amount of the fee shall be at least $1,000 but shall not exceed reasonable costs of implementing and regulating professional fiduciary professional corporations.
   3. Requires the PFB to additionally include in its licensee files the following information:
      1. Whether a professional fiduciary professional corporation for which the licensee is appointed with or serving under, has ever been removed for cause or has ever resigned or settled a matter for which a complaint against the professional fiduciary professional corporation or the licensee has been filed with the court.
      2. The case names, court locations, and case numbers for which a licensee is appointed with or serving under a professional fiduciary professional corporation.
      3. Whether the licensee is appointed with or serving under a professional fiduciary professional corporation, and the name of the professional fiduciary professional corporation.
   4. Requires a licensee to additionally include in its annual case information filing with the PFB the following information:
      1. Whether or not a professional fiduciary professional corporation, for which the licensee is appointed with or serving under, has been removed for cause. The licensee must report removals and file an additional statement of issues and facts pertaining to the case.
      2. Other specified cases involving a professional fiduciary professional corporation for which the licensee is appointed with or serving under.
      3. Indicate on each case, whether the licensee is serving with or under a professional fiduciary professional corporation and include the name of the corporation.
   5. Adds to the list of causes for disciplinary action failure of a licensee to, in a timely manner, respond to inquiries or produce documents requested by the PFB, including inquiries and documents related to a professional fiduciary professional corporation.
3. Repeals the court appointment prohibitions under the Probate Code related to professional fiduciaries and replaces it with the following:
   1. Prohibits a superior court from appointing a professional fiduciary or a professional fiduciary professional corporation as a guardian, conservator, personal representative, or trustee, or permit a professional fiduciary or a professional fiduciary professional corporation to continue in any of those offices, unless the professional fiduciary or the professional fiduciary professional corporation satisfies any of the following:
      1. Holds a current, unsuspended license issued pursuant to the Professional Fiduciaries Act to act or hold themselves out to the public as a professional fiduciary.
      2. Is exempt from the licensing requirements.
      3. Unless exempt from licensing requirements, is a professional fiduciary professional corporation, organized as a professional corporation under the Moscone-Knox Professional Corporation Act and as provided for in the Professional Fiduciaries Act. When making this appointment, the petition and appointment must specify the licensed professional fiduciary having primary responsibility for the matter. A professional fiduciary professional corporation may not be appointed as any of the following:
         1. Guardian of the person of a ward.
         2. Conservator of the person of a conservatee.
         3. Any office under the Health Care Decisions Law.
   2. Duplicates the prohibition that a person may not act or hold themselves out to the public as a professional fiduciary unless they are licensed as a professional fiduciary.
4. Makes other technical and conforming changes.

FISCAL EFFECT: Unknown; this bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by the Professional Fiduciary Association of California. According to the author, “[This bill] protects consumers first, by requiring the members of a professional fiduciary professional corporation to possess a license, second, by prescribing requirements and regulations for those corporations to provide fiduciary services, and third, by requiring the entities to comply with the requirements of the Moscone Knox Professional Corporations Act.”

Background. The word “fiduciary” is a term of art used to describe a person who is entrusted to act in the best interest of another person or entity (the principal). A fiduciary often acts as an agent or representative, making financial, legal, healthcare, or other decisions that are typically made by the principal directly. That trust comes with the highest level of legal responsibility. Legally, a fiduciary’s duties are loyalty and care—they are expected to put the principal’s interests above their own.

Many licensed professionals act as fiduciaries for their clients, such as attorneys, accountants, and real estate agents. There are also unlicensed people or entities with fiduciary duties, such as corporate officers and directors, financial advisors, trustees, and court appointed conservators and guardians.

The level of trust and confidence placed in a fiduciary leaves the principal vulnerable to significant harm from fraud or incompetence. Because fiduciaries are treated as if the principal were making the decision, they have nearly unrestricted control over legal and financial instruments like bank accounts, investments, and contracts. Improper medical or home care can also result in injury or death.

For licensed professionals, clients are directly protected by the professional conduct requirements required of the licensee by their respective practice acts and licensing entities. For unlicensed fiduciaries, principals rely on indirect protections and expectations that come with familial relationships or employer-employee, shareholder, or other business obligations. However, there are fewer indirect protections for principals utilizing a fiduciary who is not a family member or an integral part of a business organization.

The Professional Fiduciaries Act aims to provide professional licensing protection for the latter principals. The act requires a license issued by the PFB when acting as a “professional fiduciary,” which is defined to mean a person who acts as a fiduciary for more than one principal who they are not related to. The minimum number of principals increases to three or four depending on the type of fiduciary service provided.

Corporations and Licensed Practice. Except in specifically authorized situations, corporations and limited liability companies (LLCs) are not authorized to obtain a professional license. Corporations and LLCs are distinct entities with their own business assets. This structure shields the personal assets of their owners, officers, and shareholders. This corporate shield is antithetical to the professional conduct and competence requirements of a license. Professional licensing laws are intended to protect consumers by ensuring individual accountability and liability.

Licensing practice acts that do authorize the issuance of licenses directly to corporations and LLCs, such as the Contractors State License Law, reconcile this conflict by requiring designated qualified managers and financial protections such as liability insurance or surety bonds. This ensures that there is at least one responsible individual and there are financial remedies for consumers.

For practice acts that do not authorize corporations to hold licenses but otherwise authorize corporate practice of the profession, licensees may form a specific type of corporation called a “professional corporation” under the Moscone-Knox Professional Corporation Act. Instead Moscone-Knox limits professional corporations to a single profession, restricts ownership and control to authorized licensees, and authorizes services only through employees who are licensed to provide the services. This ensures the appropriate licensing board can effectively pierce the corporate shield in the event of malpractice or incompetence.

Professional Fiduciary Professional Corporations. The Professional Fiduciaries Act does not authorize corporations to provide professional fiduciary services. However, according to the sponsor, there are still situations in which unlicensed corporate entities have been designated as professional fiduciaries. One example provided results from a grey area in the Probate Code regarding trusts. Currently, there is no explicit restriction on the person or entity a testator may name as successor trustee in their will. The appointed trustee is simply determined by the testator’s stated wishes as opposed to a court appointment. As a result, the testator may name any entity as a trustee, regardless of the licensing status of the members of that entity.

This bill attempts to address the problem by creating a legal pathway for professional fiduciary corporations and reinforcing the prohibition against unlicensed corporate fiduciary practice. It does so by authorizing licensees to form professional fiduciary corporations under the Professional Fiduciaries Act and Moscone-Knox and explicitly limiting the corporate provision of professional fiduciary services to professional fiduciary professional corporations. It also includes additional transparency measures, including reporting and disclosure requirements.

Prior Related Legislation. AB 586 (Flora) of 2025 was substantially similar to this bill except that it did not contain the delayed implementation date, fees, and other technical details. AB 586 was held on the Senate Appropriations Committee suspense file.

AB 2148 (Low) of 2024 was similar to this bill except that it would have required the PFB to issue a certificate of registration to professional fiduciary corporations. AB 2148 was held on the Senate Appropriations Committee suspense file.

SB 1550 (Figueroa), Chapter 491, Statutes of 2006, first established the Professional Fiduciaries Act under the Board of Professional Fiduciaries.

ARGUMENTS IN SUPPORT:

The Professional Fiduciary Association of California (sponsor) writes in support:

[This bill] authorizes the court to appoint a professional fiduciary professional corporation to serve in a professional fiduciary capacity including as guardian of an estate, conservator of an estate, personal representative of a decedent’s estate, trustee of a trust.

The legislation also prohibits a professional fiduciary professional corporation from being appointed as a guardian of the person of a ward or conservator of the person of a conservatee and from serving as agent under a health care power of attorney.

The bill protects consumers of these services by requiring the members of the corporation to possess a license and requiring that the entities comply with the Moscone Knox Professional Corporations Act.

ARGUMENTS IN OPPOSITION:

There is no opposition on file.

IMPLEMENTATION ISSUES:

Untethered Fee. This bill requires the PFB to establish a fee for the implantation of the professional fiduciary professional corporation provisions under this bill but there is no license, act, or other trigger tied to the fee. If this bill passes this Committee, the author may wish to identify the associated workload or delete the fee.

REGISTERED SUPPORT:

Professional Fiduciary Association of California (sponsor)

REGISTERED OPPOSITION:

There is no opposition on file.

Analysis Prepared by: Vincent Chee / B. & P. / (916) 319-3301